TTT Profile
The ProShares UltraPro Short 20+ Year Treasury fund is designed to achieve daily investment returns that are three times the inverse of the daily performance of the U.S. Treasury 20+ Year Bond Index. This leveraged and inverse strategy aims to provide substantial returns for investors who anticipate a decline in long-term U.S. Treasury securities. The fund primarily invests in a combination of financial instruments, including futures contracts, options, and swap agreements, which ProShare Advisors believes will accurately reflect the fund's objective of delivering three times the opposite of the index’s daily returns.
The underlying index for this fund comprises U.S. Treasury securities with remaining maturities of 20 years or more. These securities are issued by the U.S. government and have an outstanding face value of at least $300 million, excluding amounts held by the Federal Reserve. This selection ensures that the index includes substantial, liquid treasury securities that are representative of the long-end of the U.S. Treasury yield curve. The fund’s objective is to capitalize on anticipated declines in the prices of these long-duration bonds, providing investors with a mechanism to hedge against rising interest rates or declining bond prices.
Investors should be aware that the ProShares UltraPro Short 20+ Year Treasury fund is a non-diversified investment vehicle. This means that it may hold a concentrated position in certain securities or financial instruments to achieve its investment objective. The fund's use of leverage and inverse strategies entails significant risk, including the potential for substantial losses, especially if the market moves contrary to the fund's positions. As such, it is generally suited for short-term trading rather than long-term investing.
The fund’s leveraged and inverse approach makes it a specialized investment tool, often used by traders and investors seeking to capitalize on short-term market movements or hedge against potential declines in long-term Treasury securities. The daily rebalancing required to maintain the fund’s leverage ratio means that its performance can deviate significantly from the inverse performance of the index over longer periods, emphasizing the importance of understanding the fund's mechanics and investment horizon before committing capital.
|
