Rydex to Close 12 Leveraged ETFs

Commentary April 29, 2010 at 08:00 PM

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Rydex SGI is liquidating 12 of its 14 leveraged and inverse-performing ETFs. The firm said the move was done "to focus resources on products that have demonstrated the most marketplace demand."

Competition in the leveraged ETF market has been fierce as competitors like Direxion and ProShares have aggressively expanded their fund lineups.

"With our exchange traded assets at an all-time high since we first entered the ETF scene in 2003, we are excited to intensify focus on this important business and concentrate resources on those products that have garnered the most investor interest," said Richard Goldman, CEO of Rydex SGI, in a prepared statement.

Here are the Rydex SGI ETFs slated for closure:

-Rydex 2x Russell 2000 ETF (RRY)

-Rydex 2x S&P MidCap 400 ETF (RMM)

-Rydex 2x S&P Select Sector Energy ETF (REA)

-Rydex 2x S&P Select Sector Financial ETF (RFL)

-Rydex 2x S&P Select Sector Health Care ETF (RHM)

-Rydex 2x S&P Select Sector Technology ETF (RTG)

-Rydex Inverse 2x Russell 2000 ETF (RRZ)

-Rydex Inverse 2x S&P MidCap 400 ETF (RMS)

-Rydex Inverse 2x S&P Select Sector Energy ETF (REC)

-Rydex Inverse 2x S&P Select Sector Financial ETF (RFN)

-Rydex Inverse 2x S&P Select Sector Health Care ETF (RHO)

-Rydex Inverse 2x S&P Select Sector Technology ETF (RTW)

Friday, May 21, 2010 will be the last day of trading on the NYSE Arca for shares of the above listed ETFs.

According to Rydex SGI, the affected funds account for some $129 million in assets, or less than 2 percent of firm's $7 billion in exchange traded assets under management.

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