10 Monthly Top Performer Leveraged Mutual Funds of October 2011

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As we know, market turned higher for this past 1 month. I will provide the monthly top performer mutual funds list. This fund list includes ProFunds Oil Equipment Service & Distribution Inv, Direxion Monthly Commodity Bull 2X, ProFunds UltraLatin America Inv, and more.

The list does include leverage mutual funds. Please be advised, these leveraged mutual funds may be too risky for you. If you are interested in non-leveraged mutual fund list, please check my next article. More fund’s review can be found below.

The 10 Monthly Top Performer Mutual Funds of October 2011 are:
Top Performer Funds Oct 2011
  1. ProFunds Oil Equipment Services & Distribution Inv
  2. Direxion Monthly Commodity Bull 2X
  3. ProFunds UltraLatin America Inv
  4. Rydex Russell 2000 2x Strategy A
  5. ProFunds UltraSmall Cap Inv
  6. Rady Contrarian Long/Short A
  7. Direxion Monthly Small Cap Bull 2X
  8. ProFunds UltraSector Oil & Gas Investor
  9. Direxion Monthly Latin America Bull 2X Inv
  10. ProFunds Basic Materials UltraSector Inv
updated 10/30/2011

1. ProFunds Oil Equipment Services & Distribution Inv (OEPIX)

The investment objective of this ProFunds Oil Equipment Services & Distribution Inv (OEPIX) fund is to achieve 150% daily performance of the Dow Jones U.S. Oil Equipment, Services & Distribution Index. The fund’s manager is Hratch S Najarian. The minimum investment is $15,000 for brokerage and IRA account.

The annual expense ratio of this Profunds is 1.70%. There is no dividend yield for this fund. Morningstar has rated this fund with only 1 star. The annual turnover rate is 203%. It only has $13.89 Million total net assets.

The fund’s performance over the long term period has been lousy. Based on load adjusted, this monthly top performing fund has returned -6.89% over the past 1 year, and -9.92% over the past 5 year. As of July 2011, the top 10 stocks holding in its index are: Schlumberger Ltd, Halliburton Co, National Oilwell Varco Inc, Baker Hughes Inc, Transocean Ltd, Williams Cos, El Paso Corp, Weatherford International Ltd, Cameron International Corp, and FMC Technologies Inc.

2. Direxion Monthly Commodity Bull 2X

This Direxion Monthly Commodity Bull 2X fund’s objective is to seek monthly investment return of 200% of the Morgan Stanley Commodity Related Index. The fund is managed by Tony Ng since 2006. It also has an expense ratio fee of 1.90%. There is no dividend yield.

This DXCLX fund is rated 1 star rating by Morningstar. The fund is introduced on February 17, 2005. The total net assets are $27 Million. This fund is categorized as Commodities Broad Basket equity fund.

3. ProFunds UltraLatin America Inv

This ProFunds UltraLatin America Inv fund is also part of leveraged mutual fund. This fund seeks to provide return that related to 200% of the Bank of New York Latin America 35 ADR Index performance. The fund’s lead manager is Todd B. Johnson. The total net assets are $17 Million. The fund’s expense ratio is 1.66%.

Investor can buy this UBPIX fund with $15,000 minimum initial investment for brokerage and IRA account. Morningstar has rated 2 stars rating for this leveraged fund. Based on load adjusted return, this Latin America stock fund has returned -38.77% over the past 1 year, and -16.60% over the past 3 year.

4. Rydex Russell 2000 2x Strategy A

The investment objective of this Rydex Russell 2000 2x Strategy A (RYRUX) fund is to provide investment result that correspond to 200% of the Russell 2000 index. This Rydex fund may use equity index swaps, futures, contracts, options, futures contracts, and stock indices to achieve its objective.

Ryan A Harder is the fund’s manager since 2008. This fund is also rated with 1 star rating by Morningstar. The expense ratio fee is 1.80%. For investing, you can buy this mutual fund with $2500 min for brokerage account and $1000 min for IRA account.

In term of performance, this small blend US stock fund has returned -14.63% over the past 3 year, and -11.20% over the past 5 year.

5. ProFunds UltraSmall Cap Inv

This ProFunds UltraSmall Cap Inv fund’s objective is to provide returns that match 200% daily performance of Russell 2000 Index. This fund may use equities or derivatives to achieve its objective. This fund is managed by Todd Johnson since 2008. The dividend is currently 0%. Morningstar has rated this fund with only 1 star rating. Its expense ratio fee is 1.70% per year.

Disclosure: No Position

Lessons

Lessons from this past month:
  • Always do a dollar cost average when the market is down
  • Stay in the market, hence you may miss the sudden market uptrend
  • Keep diversification on your asset portfolio whether it is bond or stock fund

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