RSP Makes the Case for Equal Weight Investing Outperforming the Broad Market Since Inception
Post on: 21 Июль, 2015 No Comment
Assets in Rydex|SGI Equal Weight ETF (RSP) More Than Doubled Since the Beginning of 2009 to Approximately $2.3 Billion
ROCKVILLE, MD—(Marketwire — May 25, 2010) — The industry’s first alternatively-weighted ETF continues to make a compelling case for incorporating equal weight investment strategies as part of an overall asset allocation strategy. As of May 12, 2010, Rydex S&P Equal Weight ETF (RSP) outperformed the market capitalization-weighted S&P 500 (1) Index by 16.97% since the beginning of last year — sporting a 40.82% return compared to the S&P 500 ‘s return of 23.85%. (2) Since its inception in 2003, RSP has returned 9.32% versus the S&P 500 ‘s 5.71% for the same time period. (2) With approximately $2 billion in assets, the fund has experienced more than 200% asset growth since the beginning of 2009. (3)
Compared to its cap-weighted counterparts, RSP has benefited from increased exposure to the smaller, more nimble companies within the S&P 500 which tend to outperform during periods of stock market recovery, says Carl Resnick, managing director, Rydex|SGI.
Benchmarked to the S&P Equal Weight Index (S&P EWI), RSP provides equal exposure to each of the 500 stocks within the S&P 500 . ensuring that smaller cap names are weighted as heavily as market giants therefore eliminating the large-cap bias of traditional capitalization-weighted index products. The fund rebalances on a quarterly basis to maintain its equal weight status, offering an inherent rebalancing of gains and an opportunity for enhanced diversification.
Although there are periods when a cap-weighted approach may do better depending on market conditions, equal weighting tends to outperform over time, says Resnick. Investors seeking to diversify their predominately cap-weighted portfolios may benefit from a combined cap-weight/equal weight approach to investing.
RSP launched in April 2003 as Rydex|SGI’s flagship ETF. Today the firm has approximately $6.3 billion in exchange traded assets under management, and offers a diverse suite of exchange traded products, which offer exposure to broad market, sector, style and currency investment strategies.
(1) Standard & Poor’s , S&P and S&P 500 , are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Rydex|SGI and its affiliates. Rydex S&P Equal Weight ETF is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of investing in Rydex S&P Equal Weight ETF. (2) Source data used: FactSet as of 5/12/2010. (3) Assets as of 5/21.10. Composition is subject to change.
RYDEX S&P EQUAL WEIGHT ETF