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Is Rydex NASDAQ-100 2X Strategy A (RYVLX) a Strong Mutual Fund Pick Right Now?
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Are you on the hunt for an Index fund? You should think about starting with Rydex NASDAQ-100 2X Strategy A (RYVLX - Free Report) . RYVLX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
History of Fund/Manager
Rydex is responsible for RYVLX, and the company is based out of Topeka, KS. Rydex NASDAQ-100 2X Strategy A debuted in June of 2005. Since then, RYVLX has accumulated assets of about $39.62 million, according to the most recently available information. The fund is currently managed by Michael P. Byrum who has been in charge of the fund since June of 2005.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 31.34%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 41.31%, 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. RYVLX's standard deviation over the past three years is 28.17% compared to the category average of 8.45%. The standard deviation of the fund over the past 5 years is 29.31% compared to the category average of 9.13%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. In the most recent bear market, RYVLX lost 80.78% and underperformed its peer group by 35.05%. This might suggest that the fund is a worse choice than its peers during a bear market.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. RYVLX has a 5-year beta of 2.36, which means it is likely to be more volatile than the market average. 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. With a positive alpha of 5.45, 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 1.81% compared to the category average of 0.76%. Looking at the fund from a cost perspective, RYVLX is actually more expensive than its peers.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment has no minimum amount.
Bottom Line
Don't stop here for your research on Index funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare RYVLX to its peers as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is Rydex NASDAQ-100 2X Strategy A (RYVLX) a Strong Mutual Fund Pick Right Now?
Are you on the hunt for an Index fund? You should think about starting with Rydex NASDAQ-100 2X Strategy A (RYVLX - Free Report) . RYVLX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
History of Fund/Manager
Rydex is responsible for RYVLX, and the company is based out of Topeka, KS. Rydex NASDAQ-100 2X Strategy A debuted in June of 2005. Since then, RYVLX has accumulated assets of about $39.62 million, according to the most recently available information. The fund is currently managed by Michael P. Byrum who has been in charge of the fund since June of 2005.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 31.34%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 41.31%, 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. RYVLX's standard deviation over the past three years is 28.17% compared to the category average of 8.45%. The standard deviation of the fund over the past 5 years is 29.31% compared to the category average of 9.13%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. In the most recent bear market, RYVLX lost 80.78% and underperformed its peer group by 35.05%. This might suggest that the fund is a worse choice than its peers during a bear market.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. RYVLX has a 5-year beta of 2.36, which means it is likely to be more volatile than the market average. 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. With a positive alpha of 5.45, 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 1.81% compared to the category average of 0.76%. Looking at the fund from a cost perspective, RYVLX is actually more expensive than its peers.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment has no minimum amount.
Bottom Line
Don't stop here for your research on Index funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare RYVLX to its peers as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.