Financials services and energy names combine for 42% of RPV’s weight. The ETF’s 26% weight to financials, by far its largest sector allocation, makes sense as the group entered 2014 as the cheapest S&P 500 sector based on 12-month forward P/E ratios. [Financials Are Getting no Respect]
As of Feb. 28, RPV’s standard deviation of 16.46% is higher than the 12.11% seen on the S&P 500. However, the ETF has clearly made taking on that higher volatility worthwhile for investors. At only point during the past six years, 2009, has RPV’s volatility alarmingly higher than the S&P 500’s. Over the same six-year period, RPV has outpaced the S&P 500 four times and by healthy margins.
Another Guggenheim ETF, the Guggenheim Spin-Off ETF (NYSEArca: CSD), is the fourth-best ETF since the March 2009 bottom.
Guggenheim S&P 500 Pure Value ETF
