RYE does, however, prove the old adage about there being no free lunch on Wall Street. The result of the ETF’s significantly reduced exposure to Chevron and Exxon is increased volatility. RYE’s standard deviation is 23.4%, according to Guggenheim data.
By comparison, IYE, which allocates offer a third of its combined weight to Exxon and Chevron, has a standard deviation of 18.9%.
RYE does have some other advantages, including a correlation to the United States Oil Fund (NYSEArca: USO) that is comparable to the correlations to USO displayed by IYE and XOP.
Investors have listened to the RYE story as $170.2 million of the ETF’s $240.6 million in assets under management have flowed into the fund just this year.
Guggenheim S&P Equal Weight Energy ETF