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Is Rydex NASDAQ-100 2X Strategy A (RYVLX) a Strong Mutual Fund Pick Right Now?
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Mutual Fund Equity Report fund seekers should consider taking a look at Rydex NASDAQ-100 2X Strategy A (RYVLX - Free Report) . RYVLX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Rydex is based in Topeka, KS, and is the manager of RYVLX. Rydex NASDAQ-100 2X Strategy A debuted in June of 2005. Since then, RYVLX has accumulated assets of about $66.53 million, according to the most recently available information. The fund's current manager, Michael Byrum, has been in charge of the fund since June of 2005.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 29.51%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 28%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 22.06%, the standard deviation of RYVLX over the past three years is 44.47%. The fund's standard deviation over the past 5 years is 39.6% compared to the category average of 19.68%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 2.25, which means it is hypothetically more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. RYVLX has generated a positive alpha over the past five years of 3.4, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, RYVLX is a load fund. It has an expense ratio of 1.79% compared to the category average of 0.78%. RYVLX is actually more expensive than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $2,500, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Rydex NASDAQ-100 2X Strategy A ( RYVLX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, Rydex NASDAQ-100 2X Strategy A ( RYVLX ) looks like a good potential choice for investors right now.
Want even more information about RYVLX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is Rydex NASDAQ-100 2X Strategy A (RYVLX) a Strong Mutual Fund Pick Right Now?
Mutual Fund Equity Report fund seekers should consider taking a look at Rydex NASDAQ-100 2X Strategy A (RYVLX - Free Report) . RYVLX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Rydex is based in Topeka, KS, and is the manager of RYVLX. Rydex NASDAQ-100 2X Strategy A debuted in June of 2005. Since then, RYVLX has accumulated assets of about $66.53 million, according to the most recently available information. The fund's current manager, Michael Byrum, has been in charge of the fund since June of 2005.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 29.51%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 28%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 22.06%, the standard deviation of RYVLX over the past three years is 44.47%. The fund's standard deviation over the past 5 years is 39.6% compared to the category average of 19.68%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 2.25, which means it is hypothetically more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. RYVLX has generated a positive alpha over the past five years of 3.4, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, RYVLX is a load fund. It has an expense ratio of 1.79% compared to the category average of 0.78%. RYVLX is actually more expensive than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $2,500, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Rydex NASDAQ-100 2X Strategy A ( RYVLX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, Rydex NASDAQ-100 2X Strategy A ( RYVLX ) looks like a good potential choice for investors right now.
Want even more information about RYVLX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.