RydexShares

Rydex Equal Weight ETFs

Many investments are capitalization-weighted (or cap-weighted), meaning that stocks in the portfolio are weighted based on the market capitalization of the company—so the largest companies in the index get a higher weight in the portfolio than their smaller-capitalization peers. Because of this bias towards the largest companies, cap-weighting can lead to over-concentration in a handful of large companies.

Equal weight investing offers investors an alternative. The equal weight strategies hold generally the same companies found in the cap-weighted strategies. However, these portfolios weight investment holdings equally across either index constituents or market segments. And because they are less concentrated in the largest companies but more concentrated in the smallest ones, equal weight investments provide broad exposure to all index holdings.

With 18 equal weight ETFs, Rydex|SGI offers the industry’s widest range of equal weight ETFs tied to some of the most popular equal weight indices. Some potential advantages of equal weight investing include:

  • Performance¹ potential over cap-weighted strategies
  • Diversification²—Broad diversification across market segments may help reduce concentration risk and result in more balanced exposure across market capitalization, sectors and other broad risk factors
  • Disciplined Rebalancing—Quarterly rebalancing to equal weight status reallocates from outperforming to underperforming stocks and market segments, resulting in unbiased exposure to market risk factors, enhanced risk control and greater opportunity to capture long-term equity-market performance



Rydex Equal Weight ETF Products

The pioneer in equal weight ETFs is now covering more of the best known indices. Click on a product name to learn more.

Product Name Ticker
Rydex S&P MidCap 400® Equal Weight ETF EWMD
Rydex S&P SmallCap 600® Equal Weight ETF EWSM
Rydex Russell 1000® Equal Weight ETF EWRI
Rydex Russell 2000® Equal Weight ETF EWRS
Rydex Russell Midcap® Equal Weight ETF EWRM
Rydex MSCI EAFE Equal Weight ETF EWEF
Rydex MSCI Emerging Markets Equal Weight ETF EWEM
Rydex MSCI All Country World (ACWI) Equal Weight ETF EWAC
Rydex S&P 500® Equal Weight ETF RSP
Rydex S&P 500® Equal Weight Consumer Discretionary ETF RCD
Rydex S&P 500® Equal Weight Consumer Staples ETF RHS
Rydex S&P 500® Equal Weight Energy ETF RYE
Rydex S&P 500® Equal Weight Financial ETF RYF
Rydex S&P 500® Equal Weight Health Care ETF RYH
Rydex S&P 500® Equal Weight Industrials ETF RGI
Rydex S&P 500® Equal Weight Materials ETF RTM
Rydex S&P 500® Equal Weight Technology ETF RYT
Rydex S&P 500® Equal Weight Utilities ETF RYU

Equal Weight ETF Investing Kit


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Equal Weight Investing Video



The 5Qs of Equal Weight Investing video answers the five questions investors should consider on equal weight investing: What, Why, Who, Where and How.

Questions?


Give us a call at 800.820.0888

1 Equal weight ETFs may underperform the market when certain market caps are in favor.
2 Diversification does not ensure a profit nor eliminate the risk of experiencing investment losses.

For more complete information regarding RydexShares® call 800.820.0888 or click here for a prospectus and a summary prospectus (if available). Investors should carefully consider the investment objectives, risks, charges and expenses of a fund before investing. The fund’s prospectus and its summary prospectus (if available) contain this and other information about the fund. Please read the prospectus and summary prospectus (if available) carefully before you invest or send money.

Each Rydex Equal Weight ETF is subject to risks and may not be suitable for all investors. Each 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 funds to purchase and sell particular investments within a reasonable time at a fair price. Investments in securities, in general, are subject to market risks that may cause their prices to fluctuate over time. An investment in the funds may lose money. Most investors will also incur customary brokerage commissions when buying or selling shares of an ETF. Unlike many investment companies, the funds are not actively "managed." This means that, based on market and economic conditions, the funds’ 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 funds’ performance to match or correlate to that of the funds’ underlying index, either on a daily or aggregate basis. Tracking error risk may cause the funds’ 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 funds’ holdings. In addition, although the funds’ 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 Rydex MSCI ETFs' investments in foreign instruments may be volatile due to the impact of diplomatic, political or economic developments on the country in question. Additionally, the funds’ exposure to foreign currencies subjects the fund to the risk that those currencies will decline in value relative to the U.S. dollar. Rydex MSCI ACWI Equal Weight ETF invests to a significant extent in other investment companies and therefore will be exposed to all of the risks of the underlying funds and will bear a proportionate share of each underlying fund’s operating expenses. See the prospectus for more details.

The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with Rydex|SGI and any related funds.

None of the Information constitutes an offer to sell (or a solicitation of an offer to buy), or a promotion or recommendation of, any security, financial product or other investment vehicle or any trading strategy, and none of the MSCI Parties endorses, approves or otherwise expresses any opinion regarding any issuer, securities, financial products or instruiments or trading strategies. None of the Information, MSCI indices, models or other products or services is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.

The Russell MidCap® Equal Weight, Russell 2000® Equal Weight and Russell 1000 Equal Weight indices are trademarks of Russell Investment Group and have been licensed for use by Rydex|SGI and its affiliates. Neither Russell’s publication of the Russell indices nor its licensing of its trademarks for use in connection with financial products derived from a Russell index in any way suggest or imply a representation or opinion by Russell as to the attractiveness of investment in any securities or other financial products based upon or derived from any Russell index. Russell is not the issuer of any such securities or other financial products and makes no expressed or implied warranties of merchantability or fitness for any particular purpose with respect to any Russell index or any data included or reflected therein, nor as to results to be obtained by any person or any entity from the use of the Russell index or any data included or reflected therein.

"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. Citigroup is a trademark of Citigroup Global Markets Inc. and has been licensed for use by Standard & Poor's. The product is not sponsored, endorsed, sold or promoted by Standard & Poor's, and neither Standard & Poor's nor Citigroup Global Markets Inc. makes no representation regarding the advisability of investing in the product.

Rydex|SGI funds are distributed by Rydex Distributors, LLC (RDL). Guggenheim Investments represents the investment advisory businesses of Guggenheim Partners, LLC, which includes Security Investors, LLC, the investment advisor to the Rydex|SGI Funds and does business as Security Global Investors® and Rydex Investments. Rydex Distributors, LLC, is affiliated with Guggenheim Partners, LLC and Security Investors, LLC.