Rydex is set to begin trading their new “Rydex Russell 2000 Equal Weight ETF” (NYSE:EWRS) tomorrow. The investment objective of the Rydex Russell 2000 Equal Weight ETF (the “Fund”) is to correspond as closely as possible, before fees and expenses, to the price and yield performance of the Russell 2000 Equal Weight Index.
Total Annual Fund Operating Expenses: 0.55%
PRINCIPAL INVESTMENT STRATEGIES – The Fund uses a passive management strategy, known as “replication,” to track the performance of the Underlying Index. “Replication” refers to investing in substantially all of the securities in the Underlying Index in approximately the same proportions as in the Underlying Index. The Advisor expects that, over time, if the Fund has sufficient assets, the correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index will be 95% or better. A figure of 100% would indicate perfect correlation.
The Russell 2000(R) Equal Weight Index is an unmanaged equal-weighted version of the Russell 2000(R) Index. The Russell 2000(R) Index is composed of the 2,000 smallest companies in the Russell 3000(R) Index, representing approximately 10% of the Russell 3000(R) total market capitalization and consisting of capitalizations ranging from $39.3 million to $2.54 billion as of June 30, 2010. The Russell 3000(R) Index is composed of the 3,000 largest U.S. companies ranked by total market capitalization, representing approximately 98% of the U.S. investable equity market. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a
For the full prospectus click: HERE