Frank, it is an inverse index fund, and I don't think the volume you show is correct. On Yahoo! the volume comes up as NA. Yahoo! shows present assets over 117 million and annual turnover > 1200 %.
I am not totally certain, but the shares traded imo has little to no effect on the price, excepting perhaps the portion relative to cost of fund operations (management). I've never had any trouble doing what I want when I want.
The daily closing price inversely 2X correlates with NDX daily closing price, mainly I assume through the use of options. If more assets poor into the fund, they have to obtain more contracts. Likewise if they flow out, they have to reduce.
Some like USPIX some don't. It is nicely leveraged when you are on the correct side of it, as it goes up 2X as fast as the NDX goes down. URPSX is the S & P equivalent. Rydex has some similar inverse funds, for the NDX and the S & P. Performance is basically the same, as they are programmed to do the same thing.
Us Yankees use these funds in our IRA's, as we are not allowed to directly acquire shorts, in these accounts. In any good capitalistic society there is almost always an alternative. My IRA management co lets me trade in and out as often as I want. You only get in and out at daily closing price, and you have to put in your order before a certain time, about 3 eastern as I recall.
In edit: I'm sure others are more knowledgeable about the micro details of exactly how these inverse funds go about their business. |
