Guggenheim S&P 500® Equal Weight ETF (RSP) is among 14 equal-weight broad market and sector ETFs in addition to Guggenheim Total Return Bond ETF (GTO) and Guggenheim S&P High Income Infrastructure (GHII) now available on E*TRADE’s Commission-Free ETF1 platform
NEW YORK, Jan. 05, 2017 (GLOBE NEWSWIRE) -- Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, announced today that Guggenheim S&P 500® Equal Weight ETF (RSP) is among 16 ETFs it has placed on E*TRADE’s Commission-Free ETF platform1.
Guggenheim S&P 500® Equal Weight ETF (RSP) is part of E*TRADE’s All-Star ETF list2. Guggenheim pioneered strategic beta in 2003 with the introduction of RSP and remains the industry leader in equal weight ETF offerings which seek to provide performance potential, more diversified opportunities, and disciplined rebalancing.
“Guggenheim’s participation in E*TRADE’s Commission-Free1 ETF platform underscores our ongoing commitment to providing investors access to innovative solutions through our distinctive ETF product line,” said William Belden, Managing Director and Head of ETF Product Development at Guggenheim Investments. “Equal weight strategies represent an alternative to traditional cap-weighted strategies, which have several potential drawbacks.”
“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 hinder performance by overweighting overvalued stocks and, conversely, underweighting undervalued ones,” Belden said.
“Equal-weight ETFs can reduce the outsized influence large companies have on ETF returns by giving each underlying security, regardless of size, equal weight. This approach can allow even small companies the opportunity to generate material returns for the fund, adding yet another tool for investors looking to potentially increase returns or reduce risk,” said Lena Haas, SVP, Investing at E*TRADE Financial. “With the addition of 14 Guggenheim Equal Weight ETFs to E*TRADE’s Commission-Free ETF platform, we continue in our pursuit to offer our customers a robust range of investment choices that are commission-free to trade.1”
Guggenheim Total Return Bond ETF (GTO) provides investors a way to access Guggenheim’s actively managed fixed-income capabilities to seek maximum total return in an ETF format.
Guggenheim S&P High Income Infrastructure ETF (GHII) is the first yield-weighted global infrastructure ETF, which may help investors seeking alternative sources of income in a low interest-rate environment. Infrastructure serves as the foundation of basic, irreplaceable public services, including electricity, roads, airports, and water, all of which are essential to support economic and social activity. As a result, demand for infrastructure assets has been less sensitive to changing economic and market factors.
The Guggenheim ETFs now available on E*TRADE’s Commission-Free platform are:
- Guggenheim S&P 500® Equal Weight ETF (RSP)
- Guggenheim MSCI Emerging Markets Equal Country Weight (EWEM)
- Guggenheim S&P MidCap 400® Equal Weight ETF (EWMC)
- Guggenheim S&P Small Cap 600® Equal Weight ETF (EWSC)
- Guggenheim S&P 500® Equal Weight Consumer Discretionary ETF (RCD)
- Guggenheim S&P 500® Equal Weight Consumer Staples ETF (RHS)
- Guggenheim S&P 500® Equal Weight Energy ETF (RYE)
- Guggenheim S&P 500® Equal Weight Financials ETF (RYF)
- Guggenheim S&P 500® Equal Weight Health Care ETF (RYH)
- Guggenheim S&P 500® Equal Weight Industrials ETF (RGI)
- Guggenheim S&P 500® Equal Weight Materials ETF (RTM)
- Guggenheim S&P 500® Equal Weight Real Estate ETF (EWRE)
- Guggenheim S&P 500® Equal Weight Technology ETF (RYT)
- Guggenheim S&P 500® Equal Weight Utilities ETF (RYU)
- Guggenheim Total Return Bond ETF (GTO)
- Guggenheim S&P High Income Infrastructure ETF (GHII)
About Guggenheim Investments
Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, LLC (“Guggenheim”), with $204 billion3 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.
The funds may not be suitable for all investors. The broad diversification of equal weight strategies does not assure a profit, nor eliminate the risk of investment losses. When larger capitalization securities are in favor or in periods of severe market dislocation, an equal weighted strategy may underperform a cap-weighted strategy, and increased exposure to smaller capitalization companies may increase volatility. Investments in fixed-income securities are subject to the possibility that interest rates could rise, causing the value of the funds’ securities and share price to decline. The infrastructure industries can be significantly affected by general economic trends, government regulation and spending, commodity prices, supply and demand of services or fuel, and natural resource conservation. Please read a fund's prospectus for more information about these and other risks.
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 or call 800.820.0888.
1 You can buy and sell the exchange traded funds (ETFs) available through the E*TRADE Securities commission-free ETF program without paying brokerage commissions. To discourage short-term trading, E*TRADE Securities may charge a short-term trading fee on sales of participating ETFs held for less than 30 days.
2 All-Star lists are not a recommendation by E*TRADE Securities or its affiliates to buy, sell or hold any security, financial product or instrument, nor is it an endorsement of any specific security, company, fund family, product, or service. All-Star ETFs are selected based on characteristics that make them most representative of a specific asset class or market segment based on the underlying index the ETF is seeking to replicate, as well as the ETF’s underlying holdings. Additional factors that are considered in the selection process include historical performance, tracking error, expenses, and liquidity. The ETFs considered for selection are passively managed, and inverse and leveraged funds are not considered. All-Star ETFs typically have at least six months of trading history and are sponsored by a well-balanced firm. To learn more, please visit etrade.com/allstar.
3 Guggenheim Investments total asset figure is as of 09.30.2016 and includes $10.7bn of leverage for assets under management and $0.5bn for assets for which we provide 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, GS GAMMA Advisors, LLC, Guggenheim Partners Europe Limited and Guggenheim Partners India Management.
E*TRADE Financial Corporation ("E*TRADE") and its subsidiaries provide financial services including online brokerage and banking products and services to retail customers. E*TRADE is not affiliated with Guggenheim.