Guggenheim Partners, the money manager behind the $4.13 billion
S&P 500 Equal Weight ETF (NYSEArca:RSP), has reported higher
expense ratios in four of its S&P-linked
effective March 1.
The firm also said in a slew of prospectus-update filings that
two ETFs-one tied to a Russell benchmark and the other to an
emerging markets portfolio-saw their ratios drop in the past year.
The ETFs in question are listed in the table below.
The biggest increase was seen in the Guggenheim S&P MidCap
400 Pure Value ETF (NYSEArca:RFV), with its current expense ratio
of 0.40 percent representing an 11 percent increase from the stated
ratio a year ago.
The higher ratios equate to higher acquired fund fees associated
with the S&P benchmarks these ETFs track, according to
Guggenheim. Indeed, management fees on all of the funds remained
unchanged, but acquired funds fees went up associated with
rebalancing of securities in the underlying S&P indexes.
To be exact, Guggenheim said that the S&P 400 MidCap and
S&P 600 SmallCap benchmarks linked to these funds increased
their weightings of business development companies (BDCs). The
higher allocations resulted in a proportionate increase in acquired
funds expenses for the ETFs that track them.
BDCs are public vehicles that invest in private equity, lending
to small and midsize companies, and are considered closed-end
funds-something that forces ETF providers serving up exposure to
BDCs to disclose acquired fund fees that represent the embedded
stock price of those companies.
Management fees on the Russell-linked and emerging market ETFs
were also left unchanged, with the decline in total expense ratio
said to be related to other costs Guggenheim "can't control," a
company source told IndexUniverse.
ETF providers are required to update prospectuses on their funds
at least once a year-and they have to do so within 120 days of the
end of their fiscal year.
The March 1 filings fulfilled that regulatory requirement as
Guggenheim's fiscal year for these funds ended Oct. 31.
Guggenheim manages more than $14.4 billion in assets spread
across more than 65 U.S.-listed ETFs, making it the eighth-largest
ETF provider in the country by assets.
|Guggenheim S&P MidCap 400 Pure
|Guggenheim S&P SmallCap 600 Pure
|Guggenheim S&P MidCap 400 Equal
|Guggenheim S&P SmallCap 600 Equal
|Guggenheim Russell 2000 Equal Weight
|Guggenheim MSCI Emerging Markets Equal
Permalink | 'copy; Copyright 2009 IndexUniverse LLC. All rights
Don't forget to check IndexUniverse.com's ETF Data
2013 IndexUniverse LLC
. All Rights Reserved.