Another Smart Beta ETF Tops $1 Billion in Assets

ETF Trends

The so-called smart beta or intelligent indexing phenomenon can claim another victory as one more non-cap weighted exchange traded fund has crossed the $1 billion in assets under management mark.

The Guggenheim S&P 500 Pure Growth ETF (RPG) is now a member of the $1 billion ETF club. RPG, which celebrates its eighth anniversary in early March, is part of Guggenheim’s six-ETF suite of pure style funds. The ETF is designed to pure exposure to growth or value stocks in the S&P 500, S&P MidCap 400 and S&P 600 SmallCap Indices, according to Guggenheim. RPG’s growth has been staggering as the fund had less than $330 million in AUM at the start of 2013.

RPG is home to 106 stocks and tracks the performance of the S&P 500 Pure Growth Index. The fund has annual expense ratio of 0.35% and scores favorably on risk and volatility metrics with a standard deviation of 14.74% and a beta of just 1.01, according to issuer data. [Watch Apple Exposure in Growth ETFs]

No single holding in RPG receives a weight of more than 2.25% in RPG. Top-10 holdings in the fund include Facebook (FB), Chipotle (CMG) and Netflix (NFLX). Consumer discretionary is RPG’s largest sector weight at almost 28.1% while technology, health care and financial services have allocations ranging from 16.1% down to 15.6%.

With just over $1 billion in AUM, RPG is the largest of the six Guggenheim pure ETFs and five of those funds have over $100 million in assets. Combined, the Guggenheim suite of pure funds is rapidly approaching $3 billion in aasets.

Guggenheim is one of the largest purveyors of smart beta and equal-weight ETFs. The Guggenheim S&P Equal Weight ETF (RSP) has over $6.6 billion in assets making it one of the largest equal-weight ETFs.

In 2013, smart beta ETFs attracted $65.1 billion in new assets, nearly double the $34.2 billion hauled in by the group in 2012. [Record ETF Inflows in 2013]

Guggenheim S&P 500 Pure Growth ETF

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ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of RPG and Facebook.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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