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To: Todd Reichardt who wrote (14708)	2/1/2001 1:12:24 PM
From: Bernie Goldberg	Read Replies (1) \| Respond to of 18928

Hi, It certainly is a large part of it. Most funds explain away high expenses by telling how they give you good performance. They make these statements even though they may not be true. When you see Bill Seale, the head of Profunds, on TV he says over and over that all they do is match indexes. He doesn't claim to know anything about or recommend any individual stocks. Index funds should be low cost vehicles for investing. You now have IShares put out by Barclay's and all the S & P Indexes on the AMEX such as the XLK, XLB And many others. All I was saying was that BLPIX should have matched the SP500 index the same as VFINX. If you look at a chart comparing VFINX and PEOPX which is Dreyfus' 500 index fund you will see that they match almost exactly. Indexing is easy! As a matter of fact look up all the SP500 index funds you can find. You will see that they all outperform BLPIX. There is no reason for any index fund not to match it's index. Leveraging does introduce another dimension. I have a bunch of money invested with ProFunds. I was just trying to point out that IMO they are not doing as fantastic a job as many people think. Bernie