Rydex Launches Five Equal-Weight ETFs

Rydex, the Maryland-based ETF issuer best known for its equal-weighted S&P 500 ETF, announced today the launch of five new equal-weighted equity ETFs, including both domestic and international funds. Rydex’s growing lineup of equal-weighted ETFs offers an alternative to funds such as SPY or EEM that are linked to market capitalization-weighted benchmarks. Because cap-weighted indexes determine the allocation given to each security based on the company’s market capitalization–and therefore the price of the stock–there is a tendency to overweight overvalued companies and underweight undervalued stocks. Many investors have embraced an equal-weighted strategy as a preferred means of establishing exposure to domestic equities; the Rydex S&P Equal Weight ETF (RSP), which holds the 500 stocks of the S&P 500 in equal weightings, has accumulated more than $2 billion in assets since its launch in 2003. Rydex also offers nine equal weight sector ETFs. New Products The domestic equity products launching today will [...] Click here to read the original article on ETFdb.com. Related Stories: Rydex: Rising From The Ashes? Rydex To Shut Down Leveraged, Inverse ETFs ETF Exclusive: Guggenheim Partners Buys Rydex