NEW YORK, NY--(Marketwire - May 2, 2011) - Rydex|SGI, a leading provider of innovative ETF and Alternative Investments solutions, today announced that assets across the firm's exchange traded product platform have reached the $8.5 billion mark.
The total, which includes the RydexShares® and CurrencyShares® products, represents a 33% jump in assets under management, from $6.2 billion to $8.5 billion, since November 1 of last year. Rydex|SGI currently ranks ninth in AUM among all ETF providers, according to Morningstar*.
Much of the growth was driven by the firm's growing suite of Equal Weight products, whose assets jumped 44% in four months from $2.5 billion (on November 1, 2010) to $3.6 billion as of March 31. Since December, Rydex has launched six new Equal Weight ETFs, all of which trade on the NYSE Arca, to complement its flagship Rydex S&P 500® Equal Weight ETF (
The equal weight approach, which weights index constituents or market sectors equally and maintains that equal weight stance through regular systematic rebalancing, helping curb the risks of stock overconcentration, has been particularly well-received by financial advisors during the market's recent volatility.
"Advisors are looking for ways to diversify across investments and market sectors, and equal weight ETFs can be a good solution," said Rich Goldman, CEO of Rydex|SGI. "In a world searching for better risk-adjusted returns, I'm pleased to see so many investors are finding their way to the Rydex|SGI offerings."
Educating Advisors
To help advisors better understand equal weight strategies, Rydex|SGI released a white paper, "Equal Weight ETFs: Is there a better beta?" in January on the attributes of equal weight strategies.
The firm is also making available two additional ETF thought pieces: "ETF Trading: An Overview for Advisors," which offers ideas on how to assess markets and execute trades, and "Equal Weight Emerging Markets," which outlines the potential benefits of an equal weight approach for emerging markets investing.
Each of these papers have been created for use by financial professionals only and can be found on the Rydex|SGI's financial professional website, www.rydex-sgi-fp.com
Average Annual Total Returns (as of 3/31/11)
| 1-Year | 3-Year | 5-Year | Since Inception | Total Expense Ratio(1) | Inception Date | |||||||
| Rydex S&P Equal Weight ETF (Market) | 20.35% | 7.36% | 4.26% | 10.56% | 0.40% | 4/24/2003 | ||||||
| Rydex S&P Equal Weight ETF (NAV) | 20.39% | 7.14% | 4.30% | 10.56% | 0.40% | 4/24/2003 | ||||||
| S&P Equal Weight Index(2) | 20.98% | 8.06% | 5.00% | 11.19%(3) | n/a | n/a | ||||||
| S&P 500 Index(2) | 17.31% | 2.35% | 2.62% | 6.95%(3) | n/a | n/a |
Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.
Performance displayed represents past performance which is not guarantee of future results. Investment return and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than original cost. Returns reflect the reinvestment of all dividends. Current performance may be lower or higher than the performance data quoted. For up-to-date fund performance, including performance current to the most recent month end, visit the Rydex|SGI web site at www.rydex-sgi.com. For additional information, see the fund's prospectus. ETFs are subject to third party transaction fees/ commissions. Net asset value (NAV) is calculated by subtracting total liabilities from total assets, then dividing by the number of shares outstanding. Market close is the last price at which shares are traded. Funds shares may trade at, above or below NAV.
(1) The fund has adopted a distribution (12b-1) plan pursuant to which the fund may bear an annual 12b-1 fee of up to 0.25%. However, no such fee is currently charged to the fund and no such fees will be charged prior to 3/01/2012.
(2) Source: Fundstation. Performance is for illustrative purposes. The index is unmanaged and is not available for direct investment.
(3) Returns are for the period 4/24/03-3/31/11 (since inception of Rydex S&P 500® Equal Weight ETF).
*According to Morningstar, Inc. as of 2/1/2011
Rydex S&P Equal Weight ETF may not be suitable for all investors. � The fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the fund's inability to buy or sell securities or other financial instruments on that day. � In certain circumstances, it may be difficult for the fund to purchase and sell particular investments within a reasonable time at a fair price. � Investments in securities and derivatives, in general, are subject to market risks that may cause their prices to fluctuate over time. An investment in the fund may lose money. � Unlike many investment companies, the fund is not actively "managed." This means that, based on market and economic conditions, the fund's performance could be lower than other types of mutual funds that may actively shift their portfolio assets to take advantage of market opportunities or to lessen the impact of a market decline. � Tracking error risk refers to the risk that the advisor may not be able to cause the fund's performance to match or correlate to that of the fund's underlying index, either on a daily or aggregate basis. Tracking error risk may cause the fund's performance to be less than you expect. � 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. In addition, although the fund's shares are currently listed on NYSE Arca, Inc. (the "Exchange"), there can be no assurance that an active trading market for shares will develop or be maintained. � The fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole. The fund is considered nondiversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of fund shares than would occur in a more diversified fund. See prospectus for more details.
"Standard & Poor's," "S&P," "S&P 500," "Standard & Poor's 500," "500," "S&P MidCap 400," and "S&P SmallCap 600" are trademarks of Standard & Poor's, LLC and have been licensed for use by Rydex|SGI and its affiliates. The products are not sponsored, endorsed, sold or promoted by Standard and Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the products.
Read the 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