NEW YORK, April 19, 2016 (GLOBE NEWSWIRE) -- Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, today announced the launch of Guggenheim Large Cap Optimized Diversification ETF (NYSE Arca:OPD). The ETF tracks the Wilshire Large Cap Optimized Diversification Index, which is designed to provide optimized diversification to the U.S. large-cap equity market.
Subject to sector and stock level constraints, the index’s methodology selects stocks that tend to have lower correlation to the cap-weighted Wilshire Large Cap Index and weights them by correlation and risk to optimize diversification. The ETF’s underlying index is rebalanced quarterly.
Individual stocks are added only to the point they contribute to diversification, resulting in an index that generally includes 100 to 120 constituents. Wilshire believes this differentiated approach, when compared to other cap-weighted and strategic beta indices, can potentially effectively deliver attractive risk-adjusted returns.
“Ever since Nobel Prize winner Harry Markowitz’s pioneering work in modern portfolio theory, diversification has been recognized as a way to improve performance potential,” said William Belden, Guggenheim Managing Director and Head of ETF Business Development.
“Central to the concept of portfolio diversification is combining assets that are not highly correlated. As a result, a portfolio’s return will be equal to the weighted average return of the portfolio’s individual holdings while a portfolio’s risk, due to lower correlation among holdings, will be less than the weighted average risk of the individual holdings. Combining differentiated return streams from lowly correlated stocks may provide the potential for attractive risk-adjusted returns.”
For more information, please visit http://www.guggenheiminvestments.com/etf or call 888.WHY.ETFs to speak to a representative.
About Guggenheim Investments
Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, with $198 billion1 in assets across fixed income, equity, and alternative strategies. We focus on the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, consultants, wealth managers, and high-net-worth investors. Our 275+ investment professionals perform rigorous research to understand market trends and identify undervalued opportunities in areas that are often complex and underfollowed. This approach to investment management has enabled us to deliver innovative strategies providing diversification and attractive long-term results.
1Guggenheim Investments total asset figure is as of 12.31.2015. The assets include leverage of $11.976bn for assets under management and $0.487bn for assets for which we provide administrative services. Guggenheim Investments represents the following affiliated investment management businesses: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Real Estate, LLC, Transparent Value Advisors, LLC, GS GAMMA Advisors, LLC, Guggenheim Partners Europe Limited and Guggenheim Partners India Management.
Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.
RISK CONSIDERATIONS. Guggenheim Large Cap Optimized Diversification ETF is subject to risks and may not be suitable for all investors. • Investing involves risk and special consideration, including the possible loss of principal. • There are no assurances that the fund will achieve its investment objective and/or strategy. • Investments in large capitalization stocks may underperform other segments of the equity market or the equity market as a whole. • The fund is not actively “managed” which means the fund would not necessarily sell a security because the security’s issuer was in financial trouble unless that security is removed from the Index. In addition, the fund will not otherwise take defensive positions in declining markets unless such positions are reflected in the Index. • Non- Correlation risk refers to the risk that the Advisor may not be able to cause the fund’s performance to match or correlate to that of the fund’s Underlying Index, either on a daily or aggregate basis. Non-Correlation risk may cause the fund’s performance to be less than you expect. • Shares may trade below their net asset value (“NAV”). The NAV of shares will fluctuate with changes in the market value of the fund’s holdings. In addition, although the fund’s shares are currently listed on NYSE Arca, Inc. (the “Exchange”), there can be no assurance that an active trading market for shares will develop or be maintained. • Most investors will incur customary brokerage commissions when buying or selling shares of an ETF. • If the Index concentrates in an industry or group of industries, the fund’s investments will be concentrated accordingly. In such event, the value of the fund’s Shares may rise and fall more than the value of shares of a fund that invests in securities of companies in a broader range of industries.• Please read the prospectus for more detailed information regarding these and other risks.
Index Disclaimer Wilshire®, the Wilshire Indexes℠, Wilshire Large Cap Optimized Diversification Index℠ and Wilshire Large Cap Index℠ are service marks of Wilshire Associates Incorporated (“Wilshire”) and have been licensed for use by Guggenheim Funds Investment Advisors, LLC. All content of the Wilshire Indexes℠, Wilshire Large Cap Optimized Diversification Index℠ and Wilshire Large Cap Index℠ is ©2016 Wilshire Associates Incorporated, all rights reserved. The ETF is not sponsored, endorsed, sold or promoted by Wilshire, and Wilshire makes no representations or warranties with respect to the ETF.
Read a fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.guggenheiminvestments.com or call 800.820.0888.
The referenced fund is distributed by Guggenheim Funds Distributors, LLC. Guggenheim Investments represents the investment management businesses of Guggenheim Partners, LLC (“Guggenheim”), which includes Guggenheim Funds Investment Advisors, LLC ("GFIA") the investment advisor to the referenced fund. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim and GFIA.
Media Contact Ivy McLemore Guggenheim Partners 212.518.9859 Ivy.McLemore@guggenheimpartners.com
Source: Guggenheim Investments