NEW YORK, July 22, 2016 (GLOBE NEWSWIRE) -- Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, today announced that, following the statement from S&P Dow Jones Indices regarding upcoming modifications to the index constituents of the S&P 500® Equal Weight Financials Index, the Guggenheim S&P 500® Equal Weight Financials ETF (RYF) will make certain adjustments to its portfolio in order to efficiently continue to track its underlying Index.
As a reflection of the rising importance of real estate as an asset class, on August 31, 2016, real estate will be removed from the financials sector and elevated from its current "industry group" status with the Global Industry Classification Standard (GICS®) financials sector to its own sector category.
As a result, after the close of business on September 16, 2016, Guggenheim Investments expects S&P Dow Jones Indices to reconstitute the S&P 500® Equal Weight Financials Index, the underlying index for RYF, by removing the stocks of companies involved in the real estate industry (including real estate investment trusts - REITs - but excluding mortgage REITs).
To effect a corresponding change to the RYF portfolio, RYF intends to replace its real estate stock holdings with shares of Guggenheim S&P 500® Equal Weight Real Estate ETF (EWRE) on or before September 16. After market close on September 16, 2016, RYF intends to make an in-kind distribution of its shares of EWRE, plus a small amount of cash for fractional shares, to shareholders of RYF such that, following the distribution, RYF will continue to hold stocks included in the reconstituted S&P 500® Equal Weight Financials Index in accordance with its principal investment strategies. As of July 12, 2016, real estate made up 31.10% of the RYF portfolio.
Effective immediately, the operating fees and expenses of EWRE will be waived until September 16, 2016, such that EWRE will have an expense ratio of zero during that time period.
Important dates for this special dividend are as follows:
Ex-Date: September 19, 2016
Record Date: September 21, 2016
Pay Date: September 22, 2016
Guggenheim, which pioneered strategic beta with the introduction of Guggenheim S&P 500® Equal Weight ETF (RSP) in 2003, has 15 equal-weight offerings in its innovative product line.
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 $202 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 06.30.2016 and includes $11.4bn of leverage for assets under management and $0.5bn for assets for which Guggenheim provides 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.
ETFs may not be suitable for all investors. ● Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than original cost. Most investors will also incur customary brokerage commissions when buying or selling shares of an ETF. ● Investments in securities and derivatives, in general, are subject to market risks that may cause their prices to fluctuate over time. ● ETF Shares may trade below their net asset value (“NAV”). The NAV of shares will fluctuate with changes in the market value of an ETF's holdings. In addition, there can be no assurance that an active trading market for shares will develop or be maintained. ● Tracking error risk refers to the risk that the Advisor may not be able to cause the ETF’s performance to match or correlate to that of the ETF's Underlying Index, either on a daily or aggregate basis. Tracking error risk may cause the ETF’s performance to be less than you expect
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 Security Investors, LLC (“SI”), the investment advisor to the referenced fund. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim and SI.
NOT FDIC INSURED • NOT BANK GUARANTEED • MAY LOSE VALUE
Media Contact Ivy McLemore Guggenheim Partners 212.518.9859 – office Ivy.McLemore@guggenheimpartners.com
Source: Guggenheim Investments