Guggenheim Investments, begun trading the Guggenheim Large Cap Optimized Diversification ETF (NYSE Arca: OPD) on Thuesday, April 19, 2016.

 

FUND INFORMATION:

Symbol: OPD	Exchange: NYSE ARCA
Name: Guggenheim Large Cap Optimized Diversification ETF	Net Expense Ratio: 0.40%

 

FUND OBJECTIVE:
The Guggenheim Large Cap Optimized Diversification ETF seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of an equity index called the Wilshire Large Cap Optimized Diversification Index.

 

REFERENCE INDEX:
The Wilshire Large Cap Optimized Diversification Index seeks to provide the optimal level of diversification and higher returns from specific stock selections available in the U.S. large-cap equity market than would be provided by a standard market-capitalization weighted exposure. Index constituents must be constituents of the Wilshire US Large-Cap Index (Wilshire Large-Cap), which is a subset of the Wilshire 5000 Total Market Index designed to represent the large-cap market. Wilshire Associates Incorporated (Index Provider), using its proprietary methodology, selects a subset of stocks from the constituents of the Wilshire Large-Cap and weights the stocks based on their correlations, which is the relation of changes in a company’s share price to changes in the share prices of other companies in the investable universe. This weighting by correlation is designed to result in the returns from each specific stock selection contributing a similar level of unique risk to the Index. The Index is also subject to sector and stock specific constraints.
The Index is reconstituted quarterly and the Index generally consists of 100 to 120 stocks on each quarterly reconstitution date. Securities are only eligible for inclusion in the Index if they have been a constituent of the Wilshire LargeCap for more than 6 months prior to a quarterly rebalancing date.

 

Top 10 Index Holdings (03/31/16):

NEM	Newmont Mining Corporation	1.46%
URBN	Urban Outfitters, Inc.	1.40%
EXC	Exelon Corporation	1.26%
KMI	Kinder Morgan Inc Class P	1.20%
ADT	ADT Corporation	1.19%
FTR	Frontier Communications Corporation	1.17%
CPB	Campbell Soup Company	1.17%
DG	Dollar General Corporation	1.16%
ED	Consolidated Edison, Inc.	1.14%
VZ	Verizon Communications Inc.	1.13%

 

Index Sector Breakdown (03/31/16):

Consumer Staples	24.42%
Consumer Discretionary	19.35%
Financials	14.02%
Health Care	12.51%
Information Technology	7.25%
Utilities	6.91%
Telecomm Services	5.27%
Energy	4.36%
Industrials	4.32%
Materials	1.59%

 

 

Useful Links:
OPD Home Page

 

 

ETFtrack comment:
Here is a comment from William Belden, Guggenheim Managing Director and Head of ETF Business Development:
“Ever since Nobel Prize winner Harry Markowitz’s pioneering work in modern portfolio theory, diversification has been recognized as a way to improve performance potential. Central to the concept of portfolio diversification is combining assets that are not highly correlated. As a result, a portfolio’s return will be equal to the weighted average return of the portfolio’s individual holdings while a portfolio’s risk, due to lower correlation among holdings, will be less than the weighted average risk of the individual holdings. Combining differentiated return streams from lowly correlated stocks may provide the potential for attractive risk-adjusted returns.”