TBX Profile
The ProShares Short 7-10 Year Treasury ETF is designed to provide investors with inverse exposure to the performance of U.S. Treasury securities with maturities ranging from seven to ten years. To achieve its investment objective, the fund primarily invests in financial instruments such as futures contracts, options, and swaps that are structured to deliver daily returns inversely related to the performance of the specified U.S. Treasury securities. The fund’s strategy is tailored to capitalize on anticipated declines in the value of these intermediate-term government bonds.
The underlying index tracks U.S. Treasury securities that have a remaining maturity of between seven and ten years and an outstanding face value of at least $300 million, excluding holdings by the Federal Reserve. This segment of the Treasury market is characterized by its sensitivity to interest rate changes, and the fund’s objective is to provide a return that is the inverse of the performance of this specific group of securities on a daily basis. This positioning can benefit investors expecting a rise in interest rates or a decline in bond prices.
The fund's portfolio management involves a sophisticated approach to using various financial instruments to achieve its inverse exposure. This includes engaging in derivative contracts such as futures and options, which are used to create the desired inverse correlation with the performance of the underlying Treasury securities. The fund’s non-diversified nature means it focuses its investments solely on achieving the inverse returns relative to the index without exposure to other asset classes or sectors.
As part of ProShares’ broader suite of ETFs, the Short 7-10 Year Treasury ETF offers investors a specialized tool for managing interest rate risk and leveraging market forecasts. By targeting a specific segment of the U.S. Treasury market, the fund allows investors to hedge against potential declines in Treasury prices or express bearish views on intermediate-term government bonds. The fund's approach and strategy are grounded in ProShares’ expertise in managing inverse and leveraged ETFs, reflecting a commitment to providing investors with targeted investment solutions.
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