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Rydex Unvails New Currency ETF, RevenueShares a New MidCap ETF
November 14, 2008
SAN DIEGO (ETFguide.com) - Rydex, the leader in currency ETFs, added the Russian Ruble (NYSEarca: XRU) to their line-up of CurrencyShares. XRU seeks investment results that correspond to the performance of the Russian Ruble. The trust receives interest payments which are used to pay expenses. Interest that exceeds trust expenses is distributed monthly. 1000 is the number of Russian Ruble per share.
The Russian ruble is the official currency of the Russian Federation (Russia), Abkhazia and South Ossetia and the currency of the accounts of the Central Bank of Russia. XRU can be used to capitalize on interest rate differentials or currency movements relative to the U.S. dollar.
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Russia’s RTX index has shed over 70% this year. Investors can gain exposure to Russian equities via the MarketVectors Russia ETF (NYSEarca: RSX).
RevenueShares decided to expand their suite of revenue weighted ETFs. Earlier this year in February, RevenueShares launched the RevenueShares Large Cap Fund (NYSEarca: RWL), RevenueShares Mid Cap Fund (NYSEarca: RWK) and RevenueShares Small Cap Fund (NYSEarca: RWJ).
The above three RevenueShares outperformed their corresponding benchmarks on a year-to date basis.
The new RevenueShares Financial Sector Fund (NYSEarca: RWW) provides revenue weighted exposure to the most publicized U.S. industry sector – financials.
Revenue weighted Vs market cap weighted:
All RevenueShares hold the same securities as the respective S&P index (S&P 500, S&P 400, S&P 600, S&P 500 Financials) but differ in their weighting methodology. While all S&P Index securities are market cap weighted (the largest company receives the highest weighting), all RevenueShares securities are revenue weighted (company with the largest revenue receives highest weighting).
With about $35 million in combined assets, the RevenueShares suite in funds hasn’t caught on yet. Enough investors looking to play a bounce in financials with alternatively weighted ETFs might change that. |
