The holdings are not 100% (short) stocks, but 100% cash. Has anyone checked into this fund, or can explain why they hold cash instead of being short the stocks they are supposed to be inverse?
SB- when you are short stocks you do not own them, so that will not show up as a holding. Do not nit pick this, if you think the market is going to drop, Rydex funds are a good way to play that. Some also have a 2 to 1 kicker, they will go up twice the amount of the drop. Of course the reverse is equally true, they will drop double the amount of the rise in the market if they are wrong. Check the loads to make sure they are small.
According to its prospectus, it invests in derivatives then use cash as collateral. It’s a common strategy used by index trackers for enhanced efficiency.
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