At best, Rydex offers a more expensive, lower quality portfolio than what investors can get from other ETFs or mutual funds. At worst, Rydex poses significant risk of diminishing investors’ wealth.
Both VMI and CMRE might be classified as “safe” stocks that investors would turn to when the market is volatile as it has been recently. However, it’s important to distinguish a stock that is really safe from one that just looks safe.
This Midwestern savings and mortgage bank has been consistently unprofitable since the financial crisis, yet accounting distortions allowed the company to report a sizeable profit last year.
The Small Cap Value style ranks twelfth out of the twelve fund styles as detailed in my Style Rankings for ETFs and Mutual Funds report. It gets my Dangerous rating,