Recent market improvements have not meant gains for every asset class, and the media is taking notice. Fund performances have varied widely since March 9; the average mutual fund has been up 36.7% while the 100 worst performing funds are down 45.8%. Inverse funds in particular have performed poorly in recent weeks as markets have improved. On Monday USA Today's John Waggoner takes a harsh look at Inverse Index funds.

The bear (i.e. inverse index) funds that suffered the greatest losses, not surprisingly, used large amounts of leverage and focused on one industry. Several ETFs have suffered the most, according to Lipper. Since March 9th, Direxion Financial Bear 3X Shares is down 95.1%, Rydex Inverse 2X S&P Select Sector Financial ETF is down 87.2%, and ProShares UltraShort Financials ProShares is down 82.3%. Of course, Direxion, Proshares, and Rydex also offer corresponding leveraged index funds that would realize significant gain in such a turnaround. 

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