Rydex|SGI, a provider of exchange-traded products and alternative investments, recently launched two new ETF models in conjunction with Dorsey Wright & Associates, a Richmond, Va.-based RIA noted for its technical research and analysis.
The new models--Rydex Global Equity and Rydex Sector Rotation--rely on Dorsey Wright's Dynamic Asset Level Investing process, a tactically-driven, multi-asset allocation methodology. The models feature the Rydex S&P 500 Equal Weight ETF (NYSE: RSP) and include a combination of the firm's equal weight and pure style ETFs.
The models are available to subscribers of Dorsey Wright's research, which is available to RIAs, broker-dealers and large institutions. The company also has a money management division. The concept of relative strength plays a central role in the firm's research. According to the company, relative strength charts typically lead them to stocks with a higher probability of outperforming the market, and it attempts to only purchase stocks whose relative strength indicates a buy signal.
Carl Resnick, managing director of exchange-traded products at Rydex|SGI, says his company approached Dorsey Wright to develop the two new models as a way to provide new investing tools to advisors and investors. "Based on our feedback from advisors, they want packaged products or models," he says.
Resnick says Rydex sought Dorsey Wright as a partner because of its noted research methodology and brand name in the investment community.
Dorsey Wright currently acts as a subadvisor to three Powershares ETFs, as well as for the Arrow DWA Balanced and Arrow DWA Tactical funds from the Arrow Funds.
Dorsey Wright is planning two regional financial advisor seminars in June in Seattle and Baltimore. The seminars will discuss the models and available Dorsey Wright resources, and will entail a trading session featuring Knight Capital and an educational overview of the Rydex suite of ETF products.