Guggenheim Investments, the wealth management firm behind the Claymore and Rydex|SGI exchange traded fund brands, filed with the Securities and Exchange Commission to launch its own line of indices.
According to the exemptive relief filing, investors will benefit from the flexibility, traceability, availability, certainty of purchase price and tax efficiencies offered.
“Equally of interest to investors will be the relatively low expense ratios of the Self-Indexing Funds as compared to those of their directly competitive traditional mutual funds, due to their in-kind efficiencies in portfolio management as well as other reduced infrastructure costs,” according to the filing.
The ETF industry is moving toward self-indexing as a means to cut costs from pricey licensing agreements to index providers, reports Alex Ulam for IndexUnverse.
Guggenheim ETF investors will be able to visit a dedicated webpage to the self-indexing funds that would better detail component stocks and holdings.
Guggenheim joins other firms that are beginning to offer in-house indexing services, including IndexIQ, BlackRock‘s iShares and WisdomTree. [BlackRock’s iShares Wants to Manage Indexes]
More recently, Van Eck also filed for permission to develop and manage its own indices. [Van Eck Launches Index Unit]
For more information on ETF indices, visit our indexing category.
Max Chen contributed to this article.