SOURCE: Rydex Investments

October 03, 2007 14:00 ET

Rydex Launches ETF Essentials™ Program to Help Educate Investors About Exchange Traded Funds (ETFs)

New Research Shows That More Than a Third of Mutual Fund Investors Don't Know What an ETF Is; More Than Half Don't Know the Difference Between ETFs and Mutual Funds

ROCKVILLE, MD--(Marketwire - October 3, 2007) - Rydex Investments today announced the launch of a comprehensive educational initiative to help bridge the gap between ETF proliferation and investor awareness about exchange traded funds. The firm's ETF Essentials™ program offers individual investors and financial professionals alike an opportunity to sharpen their knowledge by exploring subjects such as ETF liquidity, ETF pricing and the ETF creation and redemption process. Unlike other more fragmented educational attempts within the industry, ETF Essentials appeals to a variety of learning patterns and styles, delivering information via the web, printed collateral and podcasts. The program also takes a "building-block" approach to educating investors, offering learning "tracks" that give investors as much or as little information as they are looking for on a given topic.

"As a nontraditional fund company that specializes in bringing institutional-style strategies to retail investors, Rydex has made a commitment to investor education," says Tim Meyer, ETF business manager at Rydex Investments. "We're extremely excited to introduce ETF Essentials as research shows that there is a dearth of investor knowledge when it comes to exchange traded products."

In July 2007, Rydex conducted a survey of 500 mutual fund investors, which revealed that the industry has fallen short in educating investors about exchange traded funds. In fact, more than a third (38%) of individual investors do not know what an ETF is, and more than half (53%) do not know the difference between an ETF and a mutual fund. The main reason 63% of investors don't invest in ETFs is because they don't know enough about them.

Despite a lack of awareness, investors indicate an interest in ETF education. More than a third (35%) of individual investors would like to learn more about ETFs. And among those investors who work with financial professionals, 40% would like more information about ETFs -- about half (51%) would consider investing in ETFs if their advisor suggested it.

"The rapid growth of the ETF industry means that investor education will play an increasingly important role in differentiating ETF providers," says Meyer. "Along with Rydex's unique investment management expertise, we're pleased to bring investors the added value of education."

As a pioneer in the exchange traded fund space, Rydex currently has more than $5.6 billion in ETF assets under management and offers 25 exchange traded products with broad market, sector, style and currency exposure. In 2003, the firm launched its flagship ETF -- Rydex S&P Equal Weight ETF (RSP), the industry's first exchange traded fund to move away from capitalization weighting. Rydex is also known for bringing the first currency-based exchange traded product to market in 2005.

About Rydex Investments

Rydex Investments continues to drive change in the financial industry by introducing investment products and services that challenge conventional thinking, empower investors and provide essential new options for uncertain market conditions. Rydex manages more than $16 billion in assets via more than 80 mutual funds and exchange traded products.

For more complete information regarding Rydex ExpressShares ETFs, call 877.RYDEX34 or visit for a prospectus. Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. The fund's prospectus contains this and other information about the fund. Please read the prospectus carefully before you invest or send money.

ETFs are subject to risks similar to those of stocks and 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. There are no assurances that any Rydex ETF will achieve its objective or strategy.

"Standard & Poor's®," "S&P®," "S&P 500®," and the "S&P Equal Weight Index" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Rydex and its affiliates. The Rydex S&P Pure Style ETFs and the Rydex S&P Equal Weight ETFs are not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the funds.

Rydex Investments conducted this survey of individual investors in July 2007. The survey was conducted with 500 individual mutual fund investors. All participants had investable assets of more than $100K, with 150 of the participants having investable assets of more than $500K. Nearly three-quarters (73%) of these investors considered themselves "buy and hold investors that periodically rebalanced."

Rydex Distributors, Inc., an affiliate of Rydex Investments, is the distributor of Rydex funds.

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