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Rydex Introduces 2 Equal-Weight ETFs
Catherine Epperson
August 9, 2011
Rydex announced the launch of two new equal-weight ETFs which provide mid-cap and small-cap exposure to the stocks within their corresponding Indexes.
The Rydex S&P MidCap 400 Equal Weight ETF (NYSEArca: EWMD) tracks the S&P MidCap 400 Equal Weight Index. The index follows the S&P MidCap 400 Index, but assigns each stock an equal percentage or representation. MidCap stocks within the index account for over 7% of the U.S. equity market.
The Rydex S&P SmallCap 600 Equal Weight ETF (NYSEArca: EWSM) tracks S&P SmallCap 600 Equal Weight Index. The Index is the equal-weighted version of the S&P SmallCap 600 Index, which covers over approximately 3% of the U.S. equity market and measures the performance of the small-cap segment of the U.S. equity universe.
“The new ETFs provide investors access to two additional ways to employ an equal weight approach in portfolio construction, allowing them to increase performance potential and diversify holdings,” said Jim King, the ETF portfolio manager at Rydex.
The annual expense ratio for EWMD and EWSM is 0.40%
Other ETF Launches
EGShares launched the EGShares Emerging Markets High Income/Low Beta ETF (NYSEArca: HILO). The new exchange-traded fund tracks the INDXX Emerging Market High Income Low Beta Index.
The index contains 30 stocks from a universe of 2,500 companies from 21 countries screened for market capitalization, average daily trading value, dividend yield, consistency of dividend payments, and both beta and correlation to local benchmarks.
The index is designed to provide broad emerging markets exposure to higher income, lower beta stocks as compared to the MSCI Emerging Market Index
“HILO seeks to enable dividend stock buyers who want less volatility than the broad emerging markets indices to get exposure that is more likely to fit their objectives.” said Robert C. Holderith, Emerging Global Advisor’s founder and president.
The annual expense ratio for HILO is 0.85% |
