Replies to post #5568 on Profunds index and sector trading (PRO)

[Namiar]

A tip for Profunds/Rydex Investors who may be as stupid as me:

Ever since I switched to Profunds early in 2003, the 2X NDX proxies (UOPIX and USPIX) have been the only funds I have invested in, then I would frequently complain about how these funds underperformed in comparison to the actual NDX performance.

I noticed today that the Profunds NDX 1X funds match the actual NDX almost exactly.

Now, the positions that I take in the NDX via my model will only exceed 100% about 10% of the time. Therefore, the other 90% of the time it would make sense for me to do my investing in the 1X funds (OTPIX-long and SOPIX-short).

Lets say that I was 100% long today with a $100,000 portfolio.
If I were long via OTPIX, then my gain today would be 1.41%, or $1410.
Now, If I were 50% long via UOPIX, which is historically what I would do to emulate a 100% position, then I would have a 2.69% gain on $50,000. This comes to $1345, or $65 less than the above (per $100,000).

What an idiot!! And I've been doing this all year. I've probably short changed myself to the tune of several thousand dollars.