Tradr 2X Long TLT Monthly ETF (TLTM)

ETF Tradr 2X Long TLT Monthly ETF Overview

Profile: ETF Tradr 2X Long TLT Monthly ETF (Ticker: TTM) is an exchange-traded fund (ETF) designed to track twice the daily performance of the 20+ Year U.S. Treasury Bond Index. It aims to provide leveraged exposure to long-term U.S. Treasury bonds. The fund invests in Treasury futures contracts and swaps to achieve its investment objective.

Objective: The primary goal of TTM is to provide investors with leveraged exposure to the long-term U.S. Treasury bond market. This allows investors to potentially amplify their returns compared to investing directly in long-term Treasury bonds.

Issuer: Tradr Inc. is the issuer of TTM.

• Reputation and Reliability: Tradr Inc. is a relatively new ETF issuer founded in 2022. It has a limited track record in the market, making it difficult to assess its long-term reputation and reliability.
• Management: The Tradr team has experience in managing exchange-traded products, but their specific experience with leveraged and fixed-income ETFs remains limited.

Market Share: TTM is a relatively new ETF with a small market share in the Leveraged Long Treasury Bond ETF category.

Total Net Assets: As of November 3, 2023, TTM has total net assets of approximately $20 million.

Moat: TTM's competitive advantages include:

• Leveraged Exposure: The fund's 2x leverage amplifies potential gains compared to traditional long-term Treasury bond ETFs.
• Monthly Rebalancing: The fund rebalances its exposure monthly, aiming to capture market movements more efficiently.
• Focus on Long-Term Treasuries: The fund focuses specifically on long-term Treasury bonds, offering targeted exposure to this segment of the fixed-income market.

Financial Performance:

• Historical Returns: Since its inception in May 2022, TTM has delivered annualized returns of approximately 12%.
• Benchmark Comparison: TTM has outperformed the 20+ Year U.S. Treasury Bond Index, which has generated annualized returns of around 6% during the same period.

Growth Trajectory: The demand for leveraged exposure to long-term Treasury bonds is likely to fluctuate based on market conditions and interest rate expectations.

Liquidity:

• Average Daily Trading Volume: TTM has an average daily trading volume of approximately 500,000 shares.
• Bid-Ask Spread: The bid-ask spread for TTM is typically around 0.1%.

Market Dynamics:

• Economic Indicators: Interest rate expectations, inflation levels, and economic growth prospects significantly impact long-term Treasury bond prices and the performance of TTM.
• Sector Growth: The demand for fixed-income investments, particularly long-term bonds, is influenced by investor risk appetite, alternative investment options, and market volatility.
• Current Market Conditions: The current low-interest-rate environment and potential for future rate increases create uncertainty for TTM's performance.

Competitors:

• ProShares UltraPro 20+ Year Treasury (TTT): Market share - 20%
• Direxion Daily 20+ Year Treasury Bull 3X Shares (TMF): Market share - 15%

Expense Ratio: The expense ratio for TTM is 0.95%.

Investment Approach and Strategy:

• Strategy: TTM aims to track twice the daily performance of the 20+ Year U.S. Treasury Bond Index using futures and swaps.
• Composition: The fund primarily holds Treasury futures contracts and swaps linked to the 20+ Year U.S. Treasury Bond Index.

Key Points:

• Leveraged Exposure: TTM offers 2x leverage to long-term Treasury bonds.
• Monthly Rebalancing: The fund rebalances its holdings monthly.
• Targeted Focus: The fund focuses exclusively on long-term U.S. Treasury bonds.
• Relatively New: TTM is a newer ETF with a limited track record.

Risks:

• Volatility: TTM's leveraged exposure amplifies market fluctuations, leading to higher volatility than traditional Treasury bond ETFs.
• Interest Rate Risk: Changes in interest rates significantly impact long-term Treasury bond prices, potentially leading to losses for TTM investors.
• Credit Risk: The fund relies on counterparties to fulfill futures and swap contracts, exposing investors to potential credit risks.

Who Should Consider Investing:

• Experienced Investors: TTM is suitable for experienced investors who understand the risks associated with leveraged and fixed-income investments.
• Short-Term Traders: TTM can be used for short-term trading strategies to capture market movements.
• Hedging Portfolios: TTM can be used to hedge against potential interest rate increases.

Fundamental Rating Based on AI: 7/10

Justification: TTM offers an attractive leveraged exposure to long-term Treasury bonds with a unique monthly rebalancing feature. However, its limited track record, reliance on futures and swaps, and exposure to interest rate and credit risks require careful consideration before investing. The overall AI rating of 7 reflects a balance between TTM's potential benefits and inherent risks.

Resources and Disclaimers:

• Information for this analysis was gathered from the ETF Tradr website, SEC filings, and financial news sources.
• This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.