Rydex Expands Equal-Weight Lineup By Two

Rydex, the ETF issuer most known for its equal-weight and the CurrencyShares lineup of forex ETFs, added to its equal-weight lineup today with the introduction of the Rydex S&P SmallCap 600 Equal Weight ETF EWSM and the Rydex S&P Midcap 400 Equal Weight ETF EWMD. The two new funds expand the Rydex equal-weight lineup to 18 and the firm's total product line to 36. EWMD looks to be the equal-weight equivalent of the SPDR S&P MidCap 400 ETF MDY while EWSM looks like a possible rival to the iShares S&P SmallCap 600 Index Fund IJR. “Rydex has been a pioneer in the ETF space since the 2003 launch of our flagship ETF Rydex S&P 500 Equal Weight ETF (RSP),” said Jim King, ETF portfolio manager at Rydex|SGI. “The new ETFs provide investors access to two additional ways to employ an equal weight approach in portfolio construction, allowing them to increase performance potential and diversify holdings,” King said in a statement. The new Rydex funds will rebalance quarterly and invest in the same stocks as their traditional counterparts. The equal-weight approach pioneered by Rydex has proven popular with investors. The firm was ninth-largest U.S. ETF sponsor by assets at the end of July with more than $9.7 billion in AUM, according to data from the National Stock Exchange.