Daily ETF Watch: Equal Weight Fund Planned

Guggenheim files for an equal-weighted mega-cap ETF.

HeatherBell_green_bg
|
Reviewed by: Heather Bell
,
Edited by: Heather Bell

Guggenheim Investments has filed for another equal-weighted ETF in the same vein as the $8.6 billion Guggenheim S&P 500 Equal Weight ETF (RSP | A-80). The Guggenheim S&P 100 Equal Weight ETF will track an equal-weighted version of the S&P 100 Index, which is a subset of the S&P 500 Index.

According to S&P Dow Jones Indices, the S&P 100 consists of the largest and most stable “blue chip” stocks in the S&P 500. The methodology also requires that components have listed options.

RSP is widely credited as being the original smart-beta ETF. It launched in 2003, and is famous for having outperformed the cap-weighted S&P 500 for most of the years following its debut. Guggenheim has since launched a number of other equal-weighted ETFs covering different slices of the U.S. markets and foreign markets.

The proposed fund will list on the NYSE Arca exchange, according to the prospectus. However, the filing did not include a ticker or expense ratio.


Contact Heather Bell at [email protected].

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.