Rydex launches inverse ETFs

Rydex Investments of Rockville, Md., today announced the launch of eight leveraged and inverse exchange traded funds. The RydexShares leveraged and inverse Select Sector ETFs aim to offer investors magnified and inverse exposure to indexes in the energy, financial, technology and health-care sectors. “Financial professionals have shown significant interest in leveraged and inverse strategies for their potential to help capitalize on directional market moves or hedge an investment portfolio,” Carl Verboncoeur, chief executive of Rydex, said in a statement. “As the pioneer of leveraged and inverse mutual funds, we’re excited to bring new ETFs to the marketplace that offer unique leveraged and inverse exposure to the most widely traded sector indices.” Rydex’s leveraged Select Sector ETFs aim to magnify their benchmark exposures by 200%, allowing investors to achieve greater exposure to an index with less capital, according to the statement. The firm’s inverse Select Sector ETFs seek to move in the opposite direction of their specific benchmarks, enabling investors to potentially profit during sector downturns, the statement said.