ETF Spotlight: Raymond James 'Strong Buy' ETF

| About: Guggenheim Raymond (RYJ)

ETF Spotlight on the Guggenheim Raymond James SB-1 Equity ETF (NYSEARCA:RYJ), part of an ongoing series.

Assets: $181.8 million.

Objective: The Guggenheim Raymond James SB-1 Equity Fund tries to reflect the performance of the Raymond James SB-1 Equity Index, which is comprised of equity securities rated "Strong Buy," or SB-1, by Raymond James & Associates Inc.

Holdings: Top holdings include Arkansas Best Corp (ABFS) 1.0%, Advance Auto Parts (NYSE:AAP) 0.9%, Brightcove (NASDAQ:BCOV) 0.9%, PrivateBancorp Inc (NASDAQ:PVTB) 0.9% and Applied Micro Circuits Corp. (NASDAQ:AMCC) 0.9%.

What You Should Know:

  • Guggenheim Investments sponsors the fund.
  • According to Raymond James & Associates, Strong Buy (NYSEMKT:SBI) is "expected to appreciate, produce a total return of at least 15%, and outperform the S&P 500 over the next six to 12 months. For higher yielding and more conservative equities, such as REITs and certain MLPs, a total return of at least 15% is expected to be realized over the next 12 months."
  • RYJ has a 0.75% expense ratio.
  • The fund has 135 components and the top ten holdings make up 9.9% of the overall portfolio.
  • Sector allocations include financials 31.5%, consumer discretionary 21.8%, information technology 16.4%, industrials 12.8%, health care 8.3%, energy 5.3%, telecom services 2.3%, materials 0.8% and consumer staples 0.7%.
  • Market-capitalization allocations include mega-cap 8.8%, large-cap 14.5%, mid-cap 29.8%, small-cap 24.0% and micro-cap 22.9%.
  • The ETF is up 2.5% over the past month, up 7.1% in the last three months and up 35.5% year-to-date.
  • Over the past five-years, RYJ has generated an average annualized return of 23.0%, compared to the S&P 500′s annualized 15.7% gain.
  • The fund is currently trading 11.9% above its 200-day exponential moving average.

The Latest News:

  • The S&P 500 Index broke to new historic highs after Congress drafted a last minute proposal to extend to the debt ceiling.
  • "The focus is squarely back to where it is supposed to be, on earnings and the economy," Frank Fantozzi, chief executive of wealth manager Planned Financial Services, said in a Wall Street Journal article. "The markets are confident in the direction they are heading."
  • The markets will be bullish, but in a slow pragmatic manner," Fantozzi added.
  • Analysts calculate that S&P 500 companies' profits increased 1.1% year-over-year.
  • However, some economists are already warning that the prolonged government shutdown will reduce fourth quarter U.S. GDP numbers.

Guggenheim Raymond James SB-1 Equity ETF

Max Chen contributed to this article.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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