MutualFundWire.com: Inverse Bond Funds Aren't For the Average Joe
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Monday, December 6, 2010

Inverse Bond Funds Aren't For the Average Joe


Fundsters interested in the inverse and leveraged index mutual fund world, especially on the fixed income side, may want to take a look at today's Wall Street Journal. In the "Investing in Funds" special report, Carolyn Geer wonders whether inverse (and leveraged inverse) index fixed income funds are appropriate for the average investor, given that the funds compound daily or monthly (meaning that their long-term performance may not look as expected).

The WSJ mentions two such funds specifically: the ProShares UltraShort 20+ Year Treasury ETF [see profile] and Rydex-SGI Inverse Government Long Bond Strategy [see profile]. Morningstar analyst Timothy Strauts and attorney Alan Sparer (who represents two investors in the Rydex fund who are suing the fund firm) are mentioned in the article.


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