Traders should know that inverse and leveraged products are not suitable for long-term buy-and-hold investors as the compounding affects from the rebalances would create divergences from the ETF’s performance to that of the underlying index, especially over periods of high volatility. [Inverse & Leveraged ETFs]
Nevertheless, sophisticated investors who are comfortable with this type of investment should keep a close watch over inverse and leveraged ETFs if used in a short-term, tactical trading strategy. [Using Inverse ETFs to Hedge Interest Rate Risk]
ProShares UltraShort 20+ Year Treasury ETF
For more information on Treasuries, visit our Treasury bonds category.
Max Chen contributed to this article.