Thanks Aimster,
In the past I have done what you suggested previously with SPY and RSP using PerfCharts. As you indicate RSP outperforms. That is why I became interested in the brand new Rydex Equal Weight Sector ETFs. RSP is one of my holdings.
However, the big problem I see with some of these newer narrowly focused ETFs is the lack of liquidity and possibly more slippage.
For example, as I am typing this at 12:05Pm Eastern, I checked a quote for the Rydex Equal Weight Energy ETF (RYE) at Fidelity Brokerage. So, far NO SHARES have traded this morning. NONE!!! NADA!!! ZIP!!!
In checking on the more popular energy ETF from iShares (IYE) there have been 42,000 shares traded so far today. The bid is $100.42 and the ask is $100.47....a seven cent differential. No telling what the ask price for RYE might be if someone put in a bid and got the trading started.
Would the lack of liquidity and the costs associated with these equal-weight sector ETFs be enough to overcome the possible performance advantage over the market-cap sector ETFs.....especially with the possible frequent trades generated by AIM?
Just one of the problems I have been pondering recently.
Regards,
Ray
