A.I.M. Users Bulletin Board

[OldAIMGuy]

Hi Toof, Re: Leveraged Funds..................

I've mentioned before there are sector mutual funds from ProFunds that are ~1.5X. These milder versions might have enough added amplitude to work nicely with AIM and not cause heart palpitations when the markets sag a bit.

I know people who have used them with AIM. They kept SAFE at 10% total (10 on the buy side and zero on the sell) and expanded the minimum trade size to 10% for more meaningful trades when they occurred. It looked like they were doing well when I last had any correspondence with them.

http://www.profunds.com/funds/#sort=ShortName&direction=asc&tab=overview&fundGroup=Sector-UltraSector

As you mentioned, even this mildly leveraged mutual fund was crushed in the 2007-09 decline. A decline of 80% is tough to handle. Here's Basic Materials as an example in the Profunds and Guggenheim products:
http://stockcharts.com/freecharts/perf.php?BMPIX,RTM