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Rydex sees ETP assets jump by a third in four months


ETF provider Rydex|SGI has seen assets across the firm’s exchange traded product platform reach the USD8.5 billion mark.

The total, which includes the RydexShares and CurrencyShares products, represents a 33% jump in assets under management, from USD6.2 billion to USD8.5 billion, since 1 November of last year. Rydex|SGI currently ranks ninth in AUM among all ETF providers, according to Morningstar.

Much of the growth was driven by the firm’s growing suite of Equal Weight products, whose assets jumped 44% in four months from USD2.5 billion (on November 1, 2010) to USD3.6 billion as of March 31. Since December, Rydex has launched six new Equal Weight ETFs, all of which trade on the NYSE Arca, to complement its flagship Rydex S&P 500® Equal Weight ETF (NYSE: RSP) and nine domestic S&P 500 Sector ETFs. Since its inception in April 2003 through March 31, 2011, RSP has enjoyed outperformance against the traditional cap-weighted S&P 500 Index — with an average annual total return of 10.56% versus the S&P 500 Index’s 6.95% average annual total return during the same period, according to FactSet as of 3/31/11.

The equal weight approach, which weights index constituents or market sectors equally and maintains that equal weight stance through regular systematic rebalancing, helping curb the risks of stock over-concentration, has been particularly well-received by financial advisors during the market’s recent volatility.

"Advisors are looking for ways to diversify across investments and market sectors, and equal weight ETFs can be a good solution," says Rich Goldman, CEO of Rydex|SGI. "In a world searching for better risk-adjusted returns, I’m pleased to see so many investors are finding their way to the Rydex|SGI offerings."

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