Rydex

Rydex fails to live up to one of the hallmarks of stewardship, manager investment, to help align portfolio manager and shareholder interests. Only about 2% of the firm’s assets are covered by an invested manager. Open-end and exchange-traded fund fees are a weakness at the firm, contributing negatively to the rating. On average, the firm charges fees on its funds that are in the most expensive quintile of category peers. With the current market environment of fee compression, this is cause for concern, as investors may flock to alternate asset managers over time to get a better deal. A sign of strength at Rydex is its longest-tenured management, which boasts an average asset-weighted tenure of 22 years at the firm. This accumulation of experience builds confidence that the group can navigate a variety of market environments adeptly.