Rydex Strengthening Dollar 2x Strategy Fund Class H is an open-ended mutual fund that aims to deliver twice the daily performance of the U.S. Dollar Index before fees and expenses. Its primary purpose is to provide leveraged exposure to the U.S. dollar relative to a basket of major foreign currencies, including the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona, and Swiss Franc. The fund accomplishes this mandate through passive management, primarily utilizing derivatives such as index swaps, futures contracts, and options to replicate the targeted multiple of the index’s daily movements. This fund is designed for investors seeking amplified returns tied to short-term movements in the U.S. dollar, typically for purposes such as hedging or tactical portfolio positioning. Its strategy results in a non-diversified portfolio, reflecting concentrated exposure to currency risk. The Rydex Strengthening Dollar 2x Strategy Fund plays a specialized role in the market by enabling investors to express views on the strength of the U.S. dollar or to manage currency exposure within a broader portfolio context. Since its inception in 2005, the fund has served as a niche instrument for expressing leveraged currency positions in the mutual fund format.
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