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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?


To: doniam who wrote (15527)12/11/2002 4:32:33 PM
From: Steve Lee  Read Replies (2) | Respond to of 19219
 
1) Rydex uses options with decaying time value
2) QQQ is a massive fund with highest daily volume (and I guess shares outstanding) than any other issue. The frictional costs - management and dealing commissions - are shared out amongst fewer investors for the smaller Rydex.

If you track Rydex over time and compare it with the index it tracks, you will see that the inefficiency is dramatic.