Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:130/30 Funds Caught Short Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, September 2, 2010

130/30 Funds Caught Short

by: Sean Hanna, Editor in Chief

Just a handful of years ago 130/30 funds were all the rage, now they are a passed fad.

By 2007 the number of leveraged funds -- those with 130/30 or 120/20 in their name -- had reached 21 from just 4 at the start of 2006. Now that number is down to 12, reports the Wall Street Journal.

The paper reports that despite the number of offerings, the leveraged funds never really caught on with investors. Even today, the dozen funds hold just $1 billion in total assets. Back when the number of funds peaked, their AUM hit just $373 million.

Data collected by Morningstar shows the entire category -- including institutional accounts -- sits at just $30 billion. That is well short of the $1 trillion that some thought the category would pull in.

At least one reason for the relative failure of the products may be peformance. A Morningstar study following the 2008 bear market showed that the leveraged funds underperformed long-only equivalents during that troubled time. Many of those funds then lagged when the market recovered the next spring.

Funds highlighted in the article include BNY Mellon's [ see profile ] 130/30 fund; Rydex/SGI Global 130/30 Strategy [ see profile], MainStay 130/30 Core and MainStay 130/30 Growth [ see profile ]. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use