Bear Market Funds to Buy – Rydex Inverse S&P Strategy (RYURX)
As the name suggests, the objective of Rydex Inverse S&P Strategy (RYURX) is to provide investment results that match, before fees and expenses, the inverse (opposite) of the performance of the S&P 500 Index on a daily basis.
For reference, consider 2008, the last calendar year where there was a steep decline in stock prices. The S&P 500 Index fell 37%, but RYURX gained 40.9%, which is better than opposite.
What makes this fund even more outstanding is its consistent outperformance of the average bear market fund. Also, the expense ratio of 1.42% (and no load fee, to boot) makes it much cheaper than your typical bear market fund, which will set you back 2.3% in expenses.
Making RYURX more accessible than most bear market funds, the minimum initial purchase is $2,500 and just $1,500 for IRAs.