Rydex Investments announced a launch of new mega-cap exchange traded fund that tracks the recently created Russell Top 50 Index. Rydex Russell Top 50 ETF (Ticker: XLG), now listed on the American Stock Exchange, is composed of America's biggest companies, representing around 40% of the U.S. total capitalization.
"There is certainly some belief in the market that large-caps have the potential to outperform given current market and economic conditions," said Steve Sachs, director
of trading at Rydex. "A mega-cap fund has the potential to provide enhanced returns relative to other major market indices."
The Russell Top 50 Index, with the smallest security in it today of $46 billion in market-cap, is constructed based on the size of market capitalization only, apart from companies' sector of industry. The Rydex Russell Top 50 ETF comes in line with a common bullish attitude towards mega-cap funds during periods of economic expansion and now is the only exchange-traded funds in its category.
Following the successful launch of Rydex S&P Equal Weight ETF (Ticker: RSP) two years ago, the fund is Rydex's second ETF in a family of 45 mutual funds with $14 billion in assets.