- Since my previous article, IDRV has lost ~31% vs. a loss of ~22% for the S&P 500 and has underperformed the US market.
- In the face of rising interest rates, I believe it's important for investors to distinguish between the short and long-term benefits of owning IDRV.
- The fund invests nearly half of its assets in cyclical industries such as automakers, which makes it vulnerable to an economic downturn.
- If you believe the recession risks are real, I personally think it's better to avoid cyclical stocks since they generally tend to increase the portfolio's volatility, as well as drawdowns.
For further details see:
IDRV: Differentiating Between The Short- And Long-Term Opportunity