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Re: WinLoseOrDraw post# 10355

Thursday, 11/20/2003 4:08:52 PM

Thursday, November 20, 2003 4:08:52 PM

Post# of 13554
>>>>>>>>>>>>>>>>>
every other mufu is being front run, you think rydex is going to turn out to be the exception? -g/ng-
<<<<<<<<<<<<<<<<<

Actually it doesn't matter for an Index MuFu Share Price whether is being front run or not because they are calculated differently from a "normal" fund.

In a regular fund the price of a share at the end of the day is the aggregated value of all assets, times their closing prices, divided by the number of fund shares outstanding. (minus pro-rated advertising costs, commisions, hidden charges, etc.)

In an Index Fund, such as Rydex Dynamic, or Vanguard SP500, the price of the fund share has to track the index, and the fund absorbs the difference positive, or negative. (up to a point, of course)

In a regular fund current shareholders are shafted by front running, not so in an Index Fund.

H.


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