The Guggenheim S&P 500 Equal Weight ETF (NYSEArca: RSP), which tracks the S&P 500 Equal Weight Index, is the largest equal weight-oriented ETF and is arguably one of the first smart beta or alternative index-based ETF to hit the market. The underlying S&P 500 Equal Weight Index is the equal weight version of the S&P 500 Index. The equal-weight index contains the same component holdings as the cap-weighted S&P 500, but each company in the S&P 500 Equal Weight Index is allocated the same weight at each quarterly rebalance. Consequently, the holdings are balanced across all of the S&P 500 companies evenly over time.
Additionally, Guggenheim is also known for its line of defined-maturity bond funds, such as the more recently launched Guggenheim BulletShares 2027 Corporate Bond ETF (NYSEArca: BSCR) and the Guggenheim BulletShares 2025 High Yield Corporate Bond ETF (NYSEArca: BSJP), among others. These defined-maturity bond funds typically buy bonds that mature in the year the ETF will terminate, ensuring that investors can collect the bonds’ face value at maturity, along with a steady income stream along the way. As such, investors are meant to buy-and-hold these securities until maturity.
“So we’re really excited in different ways – equities and fixed-income in particular,” Draper added.
For more ETF-related commentary from Tom Lydon and other industry experts, visit our video category.