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Strategies & Market Trends : Ultra OTC Fund - UOPIX -- Ignore unavailable to you. Want to Upgrade?

To: Bernie Goldberg who wrote (1105)	1/4/2001 11:14:02 AM
From: John	Read Replies (1) \| Respond to of 2063

Hi Bernie, Thanks for writing. It's mighty cold in Gunnison! :-) If ProFunds OTC increases 20% and QQQ increases 20%, what is the difference? I don't believe we see the ProFund's expenses in the end, or do we? Does it show up in the form of lower distributions? QQQ incurs expenses as well in the form of small management fees which cause the direct relationship between QQQ and NDX to slowly degrade over time, plus you pay a broker a commission with each trade. Please tell me if you think I am overlooking anything. The next time we have a year like this past year, I will establish a new account with Rydex, and sell everything at ProFunds at a loss very late in the year and rotate everything to Rydex to immediately, and reinvest the next day, thus avoiding the wash rules. This will generate a tax loss AND remain fully investing in virtually the same instrument. I will explore this concept further this year. Any thoughts? Best Regards, John in Iceland Clear, 25°F