Beginning this Wednesday, Rydex Investments will launch six leveraged exchange-traded funds that will offer magnified or inverse-magnified returns of three major indexes, the Standard & Poor’s 500 Index, S&P MidCap 400 Index and the Russell 2000 Index, The Wall Street Journal reports. The funds will trade on the American Stock Exchange.
The funds will charge 70 basis points, whereas ProFunds’ leveraged ETFs, which debuted in June 2006, charge 95 basis points. But ProFunds Chairman and Chief Executive Officer Michael Sapir said that investors are concerned with factors other than an ETF’s management costs.
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