What are Rydex index funds?


Quick Answer

Rydex index funds are a form of exchange-traded funds that allow investors to use 401(k) and individual retirement accounts to trade in a bear market by tracking trading indexes, notes Naked Options Trading System. Rydex index funds make use of leverage as well as inverse funds and trading dynamic funds.

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Full Answer

Rydex index funds made their way into the trading arena in 1994 at the launch of the S&P 500 index inverse fund, reports Naked Options Trading System. The most popular Rydex funds are those that track the Nasdaq 100 index. Nasdaq lists its OTC Fund, OTC Inverse Fund, Dynamic OTC Fund and Dynamic OTC Inverse Fund as the most popular funds tracked by Rydex indexes.

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