8 Worst Performing Mutual Funds in 2024

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1. ProFunds UltraShort NASDAQ-100 Fund (USPSX)

Mutual Fund’s 2024 Return: -35.34%

ProFunds UltraShort NASDAQ-100 Fund (USPSX) is a mutual fund for investors looking to short the tech-heavy Nasdaq 100. The fund seeks daily investment results before fees and expenses that are two times the inverse (-2x) of the daily performance of the Nasdaq-100 Index. Consequently, fund managers invest in financial instruments likely to produce daily returns consistent with the daily target.

Based on market capitalization, the fund comprises 100 of the biggest non-financial companies, both domestic and foreign, that are listed on The NASDAQ Stock market. The fund lacks diversification. Likewise, the mutual fund was always going to underperform the overall market given that the Nasdaq 100 has been trending upwards, attributed to gains in the technology sector due to AI-driven trades. After going down by about 57.43% in 2023, ProFunds UltraShort NASDAQ-100 Fund (USPSX) emerged as one of the worst-performing mutual funds in 2024 after returning -35.34%.

While we acknowledge the potential of ProFunds UltraShort NASDAQ-100 Fund (USPSX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than USPSX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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