Rydex announced Wednesday the launch of six new equal weight exchange traded funds that bring the firm’s total number of EW ETFs to 16.
Five of the six new Rydex ETFs began trading Wednesday on the NYSE Arca:
- 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 (EWEF)
- Rydex MSCI Emerging Markets Equal Weight ETF (EWEM)
In addition, the Rydex MSCI All Country World (ACWI) Equal Weight ETF (EWAC) is estimated to begin trading on Jan. 12, 2011.
Equal weight ETFs spread investment holdings equally across index constituents or market segments, regardless of company size, as opposed to market-weighted indexes such as the S&P 500, which multiply stock price by shares outstanding and place greater value on higher market capitalizations.
For example, Rydex’s flagship ETF, the $2 billion Rydex S&P Equal Weight ETF (RSP) launched in 2003, provides the same exposure to small companies in the S&P 500 as it does to large ones. Since inception on April 24, 2003, the ETF has delivered an annualized 8.63% versus 5.15% for the S&P 500 Total Return Index as of Sept. 30, 2010, according to a Rydex news release.