Maryland-based fund shop ProFunds yesterday launched six index funds based on the following indexes: S&P Midcap 400, S&P Midcap 400/Barra Value, S&P Midcap 400/Barra Growth, Russell 2000, S&P Smallcap 600/Barra Value, and S&P Smallcap 600/Barra Growth.
The new funds should be welcome additions for indexers who like to tilt their portfolios depending on market conditions. ProFunds caters to a more active crowd because it allows investors to jump between funds without incurring additional fees. ProFunds does not charge entry or exit fees for its funds.
"These ProFunds are designed for active investors who want to take advantage of the historic divergence of value and growth segments of the market by overweighting their portfolios on either side of the small- or mid-cap equity market, or the broader small- or mid-cap equity market," said Michael L. Sapir, chairman and CEO of ProFund Advisors, in a statement.
The six new funds all have expense ratios of 1.5%, according to the ProFunds prospectus.
The table below shows historical returns for the indexes listed above:
|
Index
|
YTD
|
3 Mo
|
12 Mo
|
3 Yr*
|
5 Yr*
|
| Barra MidCap Growth |
-8.24%
|
-1.24%
|
-12.31%
|
17.17%
|
21.31%
|
| Barra MidCap Value |
7.56%
|
2.15%
|
27.86%
|
13.51%
|
18.45%
|
| Barra SmallCap Growth |
-2.95%
|
1.86%
|
-3.71%
|
6.57%
|
9.67%
|
| Barra SmallCap Value |
10.78%
|
5.47%
|
25.32%
|
10.44%
|
16.29%
|
| S&P Midcap 400 |
-0.53%
|
0.40%
|
5.58%
|
15.21%
|
19.84%
|
| Russell 2000 |
1.16%
|
0.35%
|
-1.62%
|
6.33%
|
10.41%
|
Source: Morningstar data as of 7/31/2001 *annualized returns
ProFunds also offers a lineup of leveraged index funds and funds that seek to perform the opposite of indexes.
From the Canadian Bureau
Many Canadian individual investors, including discussion board regular Bylo Selhi, are running a grassroots campaign to bring inflation-indexed savings bonds, or I-bonds, to Canada.
"Canadians face many obstacles in saving for our future, be it to buy a home, pay for our children's education or in anticipation of an unforeseen circumstance," said Bylo Selhi, who manages an independent website for Canadian investors. "Some of these obstacles include the erosive effects of inflation, the risks of the stock market and taxation on accrued but unrealized gains. One way to assist Canadians in achieving their financial goals is to provide them with a savings vehicle that overcomes these obstacles."
For more information about the campaign for Canadian I-bonds, visit the official website and sign the petition that asks Finance Minister Paul Martin to introduce inflation-indexed savings bonds to Canada.
Index Fund Advisors, Inc. (IFA) is a fee-only advisory and wealth management firm that provides risk-appropriate, returns-optimized,
globally-diversified and tax-managed investment strategies with a fiduciary standard of care.
Founded in 1999, IFA is a Registered Investment Adviser with the U.S. Securities and Exchange Commission that provides investment
advice to individuals, trusts, corporations, non-profits, and public and private institutions. Based in Irvine, California, IFA manages
individual and institutional accounts, including IRA, 401(k), 403(b), profit sharing, pensions, endowments and all other investment accounts.
IFA also facilitates IRA rollovers from 401(k)s and 403(b)s.
To find out more about the value of IFA
click here.
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