Morgan Stanley Dean Witter of New York will offer a new index fund that tracks the Nasdaq 100 and invests in exchange-traded funds, according to a preliminary prospectus the firm filed April 12 with the Securities and Exchange Commission.

The fund will invest 80 percent of its assets in companies tracked by the Nasdaq 100 and the remaining 20 percent in stock index futures and exchange-traded funds, according to the prospectus. The fund can invest up to 20 percent of its assets in the Nasdaq 100’s exchange-traded fund, QQQ’s, and up to five percent in other exchange-traded funds, according to the prospectus.

Exchange-traded funds will be used to sell positions at a loss in order to offset capital gains while maintaining an exposure to the Nasdaq 100, the prospectus said.

The fund will charge a 5.25 percent load on A-shares, five percent for B-shares and one percent for C-shares, according to the prospectus.

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