Enhanced index funds, which are designed to magnify the returns of the benchmark index they track, have underperformed their benchmarks thanks to the subprime mortgage mess. In today's
Wall Street Journal Fund Track column
, Aparajita Saha-Bubna
reports that in the past six months, ProFunds
' U.S. Government Plus Fund
, which tracks the most recently sold 30-year U.S. Treasury bond, lost 2.47 percent. On the other hand, the most recent 30-year Treasury bond generated negative returns of 0.25 percent in the six months ended August. 31. Meanwhile, the Rydex Strengthening Dollar 2x Strategy A
, which follows the U.S. Dollar Index, generated negative returns of 3.99 percent over a six-month period, while the ICE's U.S. Dollar Index lost 3.3 percent.
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