TBT Fund Description
The ProShares UltraShort 20+ Year Treasury ETF provides 2x inverse exposure, reset daily, to an index that tracks the performance of US Treasury securities with remaining maturities greater than 20 years.
TBT Factset Analytics Insight
TBT is the trader's fund of choice for levered bets on rising interest rates. Using a combination of swaps and futures, TBT gives investors -2x exposure to daily moves in T-bonds with more than 20 years left to maturity. This gives the fund a negative duration exceeding 30 years. The daily reset means investors shouldn't expect the leverage factor to hold constant over investment horizons greater than 1 day. In short, the fund is a valid option for tactical positioning/hedging against rising interest rates, but it's important to keep in mind that the -2x leverage results in greater impact from the effects of compounding. It trades briskly and block liquidity is excellent. TBT's fees are also low for this segment, making it a cost-effective option for getting inverse exposure to T-bonds.
TBT changed its underlying index from Bloomberg Barclays U.S. 20+ Year Treasury Bond Index to ICE U.S. Treasury 20+ Year Bond Index on 10/14/2016. The change has minimal impact on investor’s exposure.
TBT MSCI ESG Analytics Insight
The MSCI ESG Fund Quality Score measures the ability of ETF underlying holdings to manage key medium to long-term risks and opportunities arising from environmental, social, and governance factors, as determined by MSCI ESG Research LLC. As of February 19, 2018 the ProShares UltraShort 20+ Year Treasury MSCI ESG Fund Quality Score is 6.89 out of 10.
The fund’s Peer Rank reflects the ranking of a fund’s MSCI ESG Fund Quality Score against the scores of other funds within the same peer group, as defined by the Thomson Reuters Lipper Global Classification. TBT ranks in the 0th percentile within its peer group and in the 91st percentile within the global universe of all funds in MSCI ESG Fund Metrics coverage.
TBT Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of TBT. TBT is rated a 5 out of 5.