Rydex|SGI, the first company to provide equal-weight ETFs, will soon launch six new equal-weight ETFs to help provide core allocations for investor portfolios.
Equal weight strategies can provide a more consistent long-term risk adjusted performance as compared to cap-weighted strategies. With a reduced concentration in the largest stocks, equal weight ETFs can also provide more diversification. Furthermore, equal-weight ETFs rebalance once per quarter to enhance risk control by reducing concentration risk.
Rydex S&P Equal Weight ETF (NYSEArca: RSP), the first equal-weight ETF, launched in 2003. With six new ETFs in the lineup, Rydex|SGI will now offer sixteen equal weight ETFs. The partnership with Russell and MSCI provides more opportunities for investors looking to expand diversification with equal weight funds.
- Rydex Russell 1000 Equal Weight ETF (EWRI)
- Rydex Russell 2000 Equal Weight ETF (EWRS)
- Rydex Russell MidCap Equal Weight ETF (EWRM)
- Rydex MSCI EAFE Equal Weight ETF (NYSEARCA:EWEF)
- Rydex MSCI Emerging Markets Equal Weight ETF (NYSEARCA:EWEM)
- Rydex MSCI ACWI Equal Weight ETF (NYSE:EWAC)
The ETF marketplace continues to grow, with assets up 33% from a year ago and over 1,000 ETFs and exchange traded notes (ETNs) available in the U.S. At the end of October, ETF assets hit a record $940 billion. Additionally, advisors are increasing their holdings in ETFs due to their transparent nature, low fees, tax efficiency and liquidity.
Read the disclaimer: Tom Lydon is a board member of Rydex|SGI.
Max Chen contributed to this article.