This article was originally published on ETFTrends.com.
ETF Trends publisher Tom Lydon discussed the Guggenheim S&P 500 Equal Weight Technology ETF (RYT) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.
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RYT is an ETF play for investors looking to diminish unforeseen risks of traditional market cap-weighted funds with an equal-weight strategy.
The recent pullback in technology stocks reveals risks associated with being overweight an overcrowded trade.
RYT tracks an equally weighted version of the S&P 500 information technology sector - it systematically reallocates from outperforming to underperforming stocks and market segments to maintain its equal weight.
Its equal weighting means reduced potential for single-stock risk. Top holdings includes 1.6% Micron Technology, 1.5% Western Digital, 1.5% Verisign, 1.5% CSRA, and 1.5% Xerox.
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