Rydex, the ETF issuer known for its lineup of equal-weighted equity ETFs, will reportedly be rebranded under parent company Guggenheim. According to a Reuters report, the company is being renamed Guggenheim Investments, and will rebrand the Rydex lineup of ETFs under that name.
Guggenheim led a group of investors that acquired Security Benefit Corp., the parent of Rydex, last year. In 2009, Guggenheim bought Claymore, and it had been widely expected that the two ETF businesses under the Guggenheim umbrella would eventually be merged.
The Rydex ETF lineup includes a pair of leveraged S&P 500 ETFs–remnants of a once robust leveraged ETF suite–as well as products linked to equal weight indexes and “pure style” ETFs. The largest Rydex ETF, the S&P Equal Weight ETF (RSP), has about $2.6 billion in assets. That ETF holds the same securities held by ETFs linked to the S&P 500 (such as the ultra-popular SPY), but assigns an equal weighting to each. RSP has outperformed SPY by a wide margin in recent years, attracting attention to the equal-weighted methodology [see RSP Keeps Plugging Along]. In August, Rydex rolled out more equal weighted ETFs offering exposure to small and mid cap U.S. stocks.
Disclosure: No positions at time of writing.