ProShares, an alternative exchange traded fund provider known for its inverse and leveraged products, launched a new geared long-term Treasury ETF, extending its current line of inverse Treasury funds as the investments attract greater attention on the heels of rising interest rates.
ProShares UltraPro Short 20+ Year Treasury (NYSEArca: TTT) began trading last week. The fund tries to reflect three times the inverse, or -300%, daily performance of the Barclays Capital U.S. 20+ Year Treasury Index. It achieves it daily exposure through derivatives and swaps.
TTT has an expense ratio of 0.95%.
Inverse and leveraged products are not suitable for all investors. They are rebalanced daily and are intended as short-term hedging tools. Due to compounding effects, the long term performance on geared products will not perfectly reflect movements in the underlying asset.