August 30, 2006
ETF to Watch — Rydex Russell Top 50 (XLG)
I don’t follow the Rydex Russell Top 50 (XLG) that closely since it’s very illiquid, but it’s a pretty interesting ETF:
The investment seeks to replicate as closely as possible, before expenses, the performance of the Russell Top 50 index. The index consists of the common stocks of the 50 largest U.S. companies based on total market capitalization as represented in the Russell 3000 index.
So it holds the 50 biggest of the big cap stocks: Exxon, GE, Citigroup, Bank of America, Microsoft, etc. You can see from the chart below that the XLG began to outperform the S&P500 in late June and it has been a straight shot up since then. It’s pretty easy to see where the institutional money is going if you bother to look.
Cat: | Time: 9:57 am (utc+8)
