The ProShares UltraPro Short 20+ Year Treasury (NYSEArca: TTT), a rival to the triple-leveraged TMV, is down nearly 9% on more than quadruple its average daily turnover and also hit a new all-time low. The problem is not just that these and others are undeniably “wrong place, wrong time” ETFs, but also that some investors have been slow to acknowledge that the market loves longer-dated Treasuries this year. [Playing With Fire With Inverse Bond ETFs]
During the third quarter, investors poured $371.6 million into TBT and nearly $110 million into TMV. The ProShares Short 20+ Year Treasury (NYSEArca: TBF) pulled in $56.5 million in the July through September period.
However, since the start of the fourth quarter, investors have pulled just $46.3 million from TBT while allocating modest sums to TMV and TTT, indicating that some good money is going after bad with leveraged bearish bond ETFs.
ProShares UltraShort 20+ Year Treasury
Tom Lydon’s clients own shares of TLT.