NEW YORK, June 30, 2016 (GLOBE NEWSWIRE) -- Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, today announced the launch of Guggenheim S&P 100® Equal Weight ETF (NYSE Arca: OEW).
Guggenheim, which pioneered strategic beta with the introduction of Guggenheim S&P 500® Equal Weight ETF (RSP) in 2003, created OEW to provide investors with equal weight access to 100 of the largest and most stable companies in the S&P 500® as represented by the S&P 100® Equal Weight Index.
Guggenheim’s equal weight equity ETFs are designed to provide performance potential, more diversified opportunities, and disciplined rebalancing.
OEW is the 15th equal-weight offering in Guggenheim’s innovative ETF product line.
“OEW offers strategic beta exposure to large, blue-chip stocks across multiple industry groups and could serve as a core holding in a diversified portfolio,” said William Belden, Managing Director and Head of ETF Business Development for Guggenheim Investments. “OEW’s portfolio constituents typically are household names with strong brand recognition and global operations.”
The popular cap-weighted S&P 100® Index (OEX) consists of 100 companies selected from the S&P 500®. To be included, the companies should be among the larger and more stable companies in the S&P 500®, and must have listed options. Sector balance is considered in the selection of companies for the cap-weighted S&P 100®, which is widely used for derivatives and is the index underlying the OEX options.
“We are excited that Guggenheim has licensed the S&P 100® Equal Weight Index to grow its family of equal-weighted ETFs, which track S&P®-branded indices,” said Philip Murphy, vice president, S&P Dow Jones Indices. “Unlike market-cap weighted indices, every constituent of the S&P 100® Equal Weight Index has the same impact on performance. The unique design of the index provides a balanced view of the industry-leading companies in every sector.”
The top 20 stocks in the cap-weighted S&P 100® represent more than 45% of that index. By comparison, the top 20 stocks comprise just 20% of the S&P 100® Equal Weight Index.
“Equal weight strategies represent an alternative to traditional cap-weighted strategies, which have several potential drawbacks,” Belden said.
“Cap-weighting can lead to overconcentration in a small group of the index’s largest stocks. Additionally, cap-weighting can cause a bias towards companies that have experienced growth runs. This may hamper performance by overweighting overvalued stocks and, conversely, underweighting undervalued ones.”
For more information, please visit http://www.guggenheiminvestments.com/etf or call 888.WHY.ETFs to speak to a representative.
About Guggenheim Investments
Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, with $199 billion1 in assets across fixed income, equity, and alternative strategies. We focus on the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, consultants, wealth managers, and high-net-worth investors. Our 275+ investment professionals perform rigorous research to understand market trends and identify undervalued opportunities in areas that are often complex and underfollowed. This approach to investment management has enabled us to deliver innovative strategies providing diversification and attractive long-term results.
1Guggenheim Investments total asset figure is as of 03.31.2016 and includes $11.4bn of leverage for assets under management and $0.5bn for assets for which Guggenheim provides administrative services. Guggenheim Investments represents the following affiliated investment management businesses: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Real Estate, LLC, Transparent Value Advisors, LLC, GS GAMMA Advisors, LLC, Guggenheim Partners Europe Limited and Guggenheim Partners India Management.
Risk Considerations Guggenheim S&P 100® Equal Weight ETF is subject to risks and may not be suitable for all investors. • Correlation and tracking error risk refer to the factors that may affect the fund’s ability to achieve a high degree of correlation with its underlying index either on a single trading day or for a longer period of time. Failure to achieve a high degree of correlation may prevent the fund from achieving its investment objective and cause the fund’s performance to be less than you expect. • The fund is subject to the risk that the value of the equity securities and equity-based derivatives, if any, in the fund’s portfolio will decline due to volatility in the equity market. Large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole. • When larger-capitalization securities are in favor or in periods of severe market dislocation, an equal weighted strategy may underperform a cap-weighted strategy. • Shares may trade below their net asset value (NAV). The NAV of shares will fluctuate with changes in the market value of the fund’s holdings and the exchange-traded prices of the fund’s shares may not reflect these market values. Although the fund’s shares are currently listed on the exchange, there can be no assurance that an active trading market for shares will develop or be maintained. • In certain circumstances, it may be difficult for the fund to purchase and sell particular investments within a reasonable time at a fair price. • The fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund; changes in the market value of a single issuer could cause greater fluctuations in the value of fund shares than would occur in a diversified fund. • The fund is not actively managed and the advisor does not take defensive positions in declining markets; therefore, the fund may be subject to greater losses in a declining market than an actively managed fund.
Index Disclaimer The S&P 100® Equal Weight Index (the underlying index) is a product of S&P Dow Jones Indices LLC (SPDJI) and has been licensed for use by Guggenheim Investments and its affiliates. Standard & Poor’s®, S&P 100®, S&P 500®, and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (S&P); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); these trademarks have been sublicensed for certain use by Guggenheim Investments and its affiliates. Guggenheim S&P 100® Equal Weight ETF is not sponsored, endorsed, sold, or promoted by SPDJI, Dow Jones, S&P, or any of their respective affiliates (collectively, S&P Dow Jones Indices), and S&P Dow Jones Indices makes no representation regarding the advisability of investing in Guggenheim S&P 100® Equal Weight ETF.
Read a fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.GuggenheimInvestments.com.
The referenced fund is distributed by Guggenheim Funds Distributors, LLC. Guggenheim Investments represents the investment management businesses of Guggenheim Partners, LLC (“Guggenheim”), which includes Security Investors, LLC (“SI"), the investment advisor to the referenced fund. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim and SI.
NOT FDIC INSURED • NOT BANK GUARANTEED • MAY LOSE VALUE
Member FINRA/SIPC