NEW YORK (TheStreet) --In the latter half of 2011, investors have watched the consolidation in the ETF realm. As I noted a few weeks ago, fund provider Van Eck is currently in the process of taking over a portion of Merrill Lynch's line of HOLDRs exchange traded products.
This week, it was announced that Guggenheim Partners was planning to expand its own family of ETFs by taking over control of RydexSGI. This move marks the second notable ETF-related acquisition from Guggenheim. Around this time a year ago, the firm took over Claymore. As a result of this deal, Guggenheim acquired ETFs including the Guggenheim Solar ETF (TAN), Guggenheim Canadian Energy Income ETF (ENY) and the Guggenheim Airline ETF (FAA).
The Rydex acquisition is an important and exciting move for Guggenheim. According to InvestmentNews, the acquisition of acquiring Rydex's line of ETFs will allow Guggenheim's ETF business to expand to nearly $19 billion, making it the tenth largest fund provider in the ETF universe.
The growth that comes with this deal is impressive. However, it is important to note that Guggenheim's newest acquisition brings with it a great deal of historical value as well.As an independent ETF provider, Rydex has played an instrumental role in transforming the ETF industry into what it is today. The company initially ventured into the ETF industry in 2003, launching the Rydex S&P Equal Weight ETF (RSP), the first exchange-traded product to use an alternative weighting methodology. Since the launch of RSP, Rydex has dramatically expanded its suite of equal-weight ETFs to 18. Using these funds, investors can tap into various styles, sectors and international markets. This firm was also responsible for the launch of the first ever currency ETF: the CurrencyShares Euro Trust (FXE). In response to the wild popularity of FXE, Rydex has since gone on to become a leader in the currency realm, creating products under its CurrencyShares brand that allow investors to target foreign currencies ranging from the Australian dollar to the Russian Ruble. Rydex has a long history in the leveraged ETF industry. Once considered a pioneer in this corner of the ETF industry, in 2010, the company announced that it was pulling the plug on 12 of the 14 leveraged and inverse funds under its watch. Currently, only the Rydex 2x S&P 500 ETF (RSU) and the Rydex Inverse 2x S&P 500 ETF (RSW) remain.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV