Is Rydex NASDAQ-100 2X Strategy A (RYVLX) a Strong Mutual Fund Pick Right Now?

Having trouble finding an Index fund? Rydex NASDAQ-100 2X Strategy A (RYVLX) is a potential starting point. RYVLX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.History of Fund/ManagerRYVLX finds itself in the Rydex family, based out of Topeka, KS. Rydex NASDAQ-100 2X Strategy A made its debut in June of 2005, and since then, RYVLX has accumulated about $114.67 million in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals.PerformanceInvestors naturally seek funds with strong performance. RYVLX has a 5-year annualized total return of 25.62% and it sits 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 27.18%, which places it in the top third during this time-frame.It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.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 41.33% compared to the category average of 21.35%. The fund's standard deviation over the past 5 years is 41.55% compared to the category average of 20.92%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 2.36, 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 negative alpha over the past five years of -2.75, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesAs 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 1.77% compared to the category average of 1.26%. So, RYVLX is actually more expensive than its peers from a cost perspective.Investors need to be aware that with this product, the minimum initial investment is $2,500; each subsequent investment has no minimum amount.Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, even with its comparatively strong performance, worse downside risk, and higher fees, Rydex NASDAQ-100 2X Strategy A ( RYVLX ) has a high Zacks Mutual Fund rank, and therefore looks 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. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (RYVLX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks