Rydex Biotechnology Fund
Of course, if you’re really itching to go full-bore into the risky (but potentially high-reward) biotech sector, the Rydex Biotechnology Fund (MUTF:RYOIX) — now under the Guggeheim Investments — can scratch.
About 90% of RYOIX’s holdings are dedicated to biotechs, with hefty weightings going to Amgen, Gilead Sciences (NASDAQ:GILD), Biogen Idec (NASDAQ:BIIB), Celgene (NASDAQ:CELG) and Alexion. The rest of the fund’s holdings are in life sciences tools and services companies — for instance, Life Technologies (NASDAQ:LIFE), which provides everything from lab equipment to cellular analysis systems, and Bio-Rad Laboratories (NYSE:BIO), which has product and service offerings for both life sciences and clinical diagnostics.
Expenses are a little hefty at 1.36%, and the management team definitely relies on trading to make a buck, with turnover of more than 300%. Also important to note: It has a paltry $190 million in assets, dwarfed by the multibillion-dollar babies mentioned above. Still, this four-star fund has averaged 10% gains since 1998, and it has had a great run out of the recession with 20%-plus annual returns, so the price might be right. Rydex also requires a $2,500 minimum investment.