Hypothetically and assuming no significant appreciation in bond prices, TTT could tack on another 20% if 10-year yields climb to 3%. Remembering that leverage cuts both ways is critical. Investors should consider that there have been times when the short Treasury trade has become too crowded, leading to swift jumps in bond prices that sent the bears scurrying for cover, a scenario that could lead to significant losses in any short Treasury ETF. [Short Treasury ETFs Mauled by Bond Rally]
ProShares UltraPro Short 20+ Year Treasury
ETF Trends editorial team contributed to this post.