Rydex SGI has 34 ETFs and is ranked 9th in the market with combined assets worth $7.7 billion. It is seeking to establish itself as the top service provider in the equal weight ETF niche.
ETFs invest funds in the companies forming the part of the index it tracks either on a basis of capitalization or on a basis of equal weight to all stocks. Rydex has 16 ETFs that follow the equal weighted model for investment in the index.
Rydex issued six new equal weighted ETFs in December and January last with three broad based international funds. The firm is in the process of releasing an equal weight Japan fund. Such fund, when released, will be the first equal weight fund to operate based on a single foreign country.
Such funds protect investors from bubbles but critics point out that investors shall gain more by avoiding such funds and opting for small and madcap based ETFs
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