While equal-weight ETFs have been more than legitimized over the years, some critics allege that the advantages of these products are solely tied to deeper exposure to small-caps and/or value stocks. However, it is Guggenheim’s ability to efficiently rebalance ETFs such as RSP and RTM that tells the true story. Plus, RTM is not heavily tilted toward smaller stocks, nor is the materials sector notably inexpensive compared to the S&P 500. [Getting Strategic With Equal-Weight ETFs]
Themes to keep an eye on with materials ETFs in 2015 include ongoing dollar strength because the sector is seen as vulnerable to the strong greenback and activist interest in marquee materials stocks DuPont and Dow Chemical (NYSE: DOW). [Sector ETFs Hoping for Dollar Reversion]
Guggenheim S&P Equal Weight Materials ETF
Tom Lydon’s clients own shares of RSP.