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ProShares UltraShort 20+ Year (TBT) is an ETF that moves inversely with US Treasury bond prices. In other words, if interest rates rise then you make money. I t
by jonbischke 17y ago
ProShares UltraShort 20+ Year (TBT) is an ETF that moves inversely with US Treasury bond prices. In other words, if interest rates rise then you make money. I think it's getting harder (although not impossible) to envision a future in which we won't have substantially higher interest rates. Might be a worthy add to portfolios if you're concerned about this.
BTW, watched I.O.U.S.A. this week (http://www.iousathemovie.com/ http://www.iousathemovie.com/). If you want to have the crap scared out of you about the impending issues with the debt that's the movie to watch.
- messel 17y agoI do prefer reading about this stuff and watching movies like the above over horror flics. :D
- jonbischke 17y agoSome might argue that the documentary above is a horror movie.
- cvg 17y agoI like this fund too, but to clarify, it moves double inverse to to US T-Bond Yields. For instance, if the ETF portfolio has an average duration of 15, a one percent increase in treasury bonds rates will cause a 30% increase in the ETF price. A nice hedge against higher rates.
- dirtae 17y agoWatch out for these UltraShort ETFs. They are only useful for day trading. Over periods longer than a day, they don't match the returns you'd expect to see for a variety of reasons. More info here: http://www.businessinsider.com/2008/12/ultrashort-etfs----caveat-investor http://www.businessinsider.com/2008/12/ultrashort-etfs----ca...