ETF Trends
05-07-2008, 05:45 AM
ETF Trends - Keeping a Grip on Exchange Traded Funds (ETFs)
http://www.etftrends.com/images/2008/05/05/3636086284.jpeg (http://etftrends.typepad.com/photos/uncategorized/2008/05/05/3636086284.jpeg) Happy Anniversary to the equal-weight exchange traded fund (ETF) (http://www.etftrends.com/2008/05/when-value-is-a.html) strategy, which marked the beginning five years ago.
The Rydex S&P Equal Weight (RSP (http://finance.yahoo.com/q?s=rsp)) started the trend on May 2, 2003, and has since opened the opportunity for ETFs to track an index measuring company weightings by factors other than market capitalization. Its five-year annualized returns is 13.4%.
David Hoffman of Investment News reports (http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20080505/REG/226088808/1025/ETF) that at the end of 2007, there were at least 67 ETFs that tracked alternative indexes, by Morningstar's count. The five-year anniversary of the equally weighted ETF from Rydex opens debate, where some claim this is a form of active management. Rydex is still working on an equal-weight ETF lineup of 10 funds.
Another fund of the equal weight strategy is the First Trust Nasdaq 100 Equal Weight Index (QQEW (http://finance.yahoo.com/q?s=qqew)).
Since the advent of the equal weighting, many advisors are looking at their allocations and coming to the conclusion that it is prudent to use equal-weighted ETFs. Some advisors say it's merely an attempt at building a better mousetrap.
For most advisors, equal-weight ETFs would be an excellent core holding.
Read the disclosure (http://www.etftrends.com/2005/08/rydex_disclaime.html), as Tom Lydon is a board member of Rydex Funds.
http://www.etftrends.com/images/2008/05/06/z_8.png (http://etftrends.typepad.com/photos/uncategorized/2008/05/06/z_8.png)
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/285203404/equal-weight-et.html)
http://www.etftrends.com/images/2008/05/05/3636086284.jpeg (http://etftrends.typepad.com/photos/uncategorized/2008/05/05/3636086284.jpeg) Happy Anniversary to the equal-weight exchange traded fund (ETF) (http://www.etftrends.com/2008/05/when-value-is-a.html) strategy, which marked the beginning five years ago.
The Rydex S&P Equal Weight (RSP (http://finance.yahoo.com/q?s=rsp)) started the trend on May 2, 2003, and has since opened the opportunity for ETFs to track an index measuring company weightings by factors other than market capitalization. Its five-year annualized returns is 13.4%.
David Hoffman of Investment News reports (http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20080505/REG/226088808/1025/ETF) that at the end of 2007, there were at least 67 ETFs that tracked alternative indexes, by Morningstar's count. The five-year anniversary of the equally weighted ETF from Rydex opens debate, where some claim this is a form of active management. Rydex is still working on an equal-weight ETF lineup of 10 funds.
Another fund of the equal weight strategy is the First Trust Nasdaq 100 Equal Weight Index (QQEW (http://finance.yahoo.com/q?s=qqew)).
Since the advent of the equal weighting, many advisors are looking at their allocations and coming to the conclusion that it is prudent to use equal-weighted ETFs. Some advisors say it's merely an attempt at building a better mousetrap.
For most advisors, equal-weight ETFs would be an excellent core holding.
Read the disclosure (http://www.etftrends.com/2005/08/rydex_disclaime.html), as Tom Lydon is a board member of Rydex Funds.
http://www.etftrends.com/images/2008/05/06/z_8.png (http://etftrends.typepad.com/photos/uncategorized/2008/05/06/z_8.png)
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/285203404/equal-weight-et.html)