Options Trading System

About Nasdaq Funds

A short description of the most popular Rydex index funds that were designed to track performance of the NASDAQ 100 index.

During the last few years the Rydex funds have become very popular among investors. The main advantage of Rydex, as well as other index funds, is that they allow investors to use IRA and 401k accounts to participate in a bear market by using inverse funds, as well as leverage, trading dynamic funds or an "x2 strategy."

The history of Rydex index funds goes back to 1994 when the S&P 500 index inverse fund was launched. Since that time, more than a dozen funds that track the US indexes have been introduced to the market.

The Rydex funds that track the NASDAQ 100 index are among the most popular funds. However, investors can find ProFunds, Potomac Funds that track this index as well.

In keeping with the Security and Commissions rules, the NASDAQ 100 Rydex index Funds are traded on a daily basis (once a day) after the market close and based on the index daily close price.

A list of the most popular NASDAQ 100 Rydex index funds appears below.

Rydex OTC (NASDAQ 100) Funds

• Rydex OTC Fund: This fund was developed to provide investment returns that correspond to the daily performance of the NASDAQ 100 index. This is one of the oldest Rydex funds and February 14, 1994 was the first day in which this fund was traded;
• Rydex OTC Inverse Fund: This fund tracks the opposite of the performance of the NASDAQ 100 index on a daily basis. This fund was established in September 1998;
• Rydex Dynamic OTC Fund: This fund provides investment results that are double (200%) the performance of the NASDAQ 100 index;
• Rydex Dynamic OTC Inverse Fund: The fund was launched in May 2000 and was set to match to 200% percent of the daily opposite NASDAQ 100 index performance.