Fund action - Thursday, June 19, 2008
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Rydex Pitches ETFs To IRA Clients
Wholesalers tout the funds as a way to bet against securities without violating IRA prohibitions on short selling. Carl Resnick, national sales manager, said the offerings are suitable for a range of investors but added that the retirement market is growing and Rydex wants to capture that business.
Rydex has 38 wholesalers—25 devoted to wirehouses, five devoted to registered investment advisor and eight who focus on ETF sales to retail and institutional clients. Wholesalers in the wirehouse and RIA channels sell both mutual funds and ETFs.
Rydex recently launched four inverse sector ETFs that effectively short their respective sector indexes—Inverse 2x S&P Select Sector Energy ETF, Inverse 2x S&P Select Sector Financial ETF, Inverse 2x S&P Select Sector Health Care ETF and Inverse 2x S&P Select Sector Technology ETF. The firm also launched four leveraged ETFs that bet long on the same sector indexes.
Resnick said Rydex will launch more ETFs that use institutional-style strategies, though he did not provide details.
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