Rydex Inverse S&P 500 2x Strategy
YTD Return: -19%
The Rydex Inverse S&P 500 2x Strategy (MUTF:RYCBX) fund — now under the Guggenheim banner — was double trouble for investors. It is structured to gain 1% for every 2% drop in the S&P 500. Naturally, with the index up for the year, the fund has turned out to be a big loser.
This also shows the perils of buying a leveraged fund: Not only can you suffer heavy losses thanks to a fund’s multiplier, but — depending on rebalancing and once you add in fees — you can lose a whole lot more.