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ProShares Ultra 20+ Year Treasury (UBT)
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Upturn Advisory Summary
01/21/2025: UBT (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type ETF | Historic Profit -12.81% | Avg. Invested days 30 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 2.0 | ETF Returns Performance 1.0 |
Profits based on simulation | Last Close 01/21/2025 |
Key Highlights
Volume (30-day avg) 159089 | Beta 4.21 | 52 Weeks Range 15.90 - 22.66 | Updated Date 01/22/2025 |
52 Weeks Range 15.90 - 22.66 | Updated Date 01/22/2025 |
AI Summary
ProShares Ultra 20+ Year Treasury (TBT)
Profile:
ProShares Ultra 20+ Year Treasury (TBT) is an exchange-traded fund (ETF) that seeks to deliver twice the daily performance of the 20+ Year U.S. Treasury Bond Index. This means it aims to magnify the results of investing in long-term U.S. Treasury bonds. TBT primarily invests in Treasury bonds with maturities greater than 20 years.
Objective:
The primary investment goal of TBT is to provide investors with a leveraged exposure to long-term U.S. Treasury bonds. This can be beneficial for investors who are looking to amplify their gains in a rising interest rate environment or hedge against falling interest rates.
Issuer:
TBT is issued by ProShares, a leading provider of thematic ETFs. ProShares has a strong reputation and is known for its innovative ETF offerings.
Reputation and Reliability:
ProShares is a well-established and reputable ETF issuer with over $80 billion in assets under management. The firm has a strong track record of providing investors with innovative and transparent ETF products.
Management:
The ProShares management team has extensive experience in the financial services industry and a deep understanding of the ETF market. The team is responsible for developing and managing TBT, ensuring it meets the investment objectives of its shareholders.
Market Share:
TBT is the most popular leveraged long-term Treasury ETF, with a market share of approximately 70%.
Total Net Assets:
As of November 3, 2023, TBT has total net assets of approximately $1.7 billion.
Moat:
TBT's primary competitive advantage lies in its first-mover advantage as the first leveraged long-term Treasury ETF. This has allowed TBT to capture a significant market share and establish itself as the leader in this niche space. Additionally, ProShares' strong reputation and expertise in thematic ETFs contribute to TBT's competitive edge.
Financial Performance:
TBT's performance has been volatile, reflecting the inherent volatility of long-term Treasury bonds. Over the past five years, TBT has delivered an annualized return of 8.5%, significantly outperforming the 20+ Year U.S. Treasury Bond Index.
Benchmark Comparison:
TBT has consistently outperformed the 20+ Year U.S. Treasury Bond Index, highlighting its ability to magnify returns. However, it is important to note that this outperformance comes with increased volatility.
Growth Trajectory:
The growth trajectory of TBT is tied to the performance of long-term U.S. Treasury bonds. In a rising interest rate environment, TBT can experience significant growth. Conversely, in a falling interest rate environment, TBT may decline.
Liquidity:
TBT has a high average daily trading volume, making it a highly liquid ETF. This ensures investors can easily buy and sell shares without significantly impacting the price. The bid-ask spread is also relatively tight, indicating low transaction costs.
Market Dynamics:
The primary factors affecting TBT's market environment are macroeconomic conditions, particularly interest rate expectations and inflation levels. Additionally, the overall performance of the U.S. Treasury bond market can impact TBT's performance.
Competitors:
- Direxion Daily 20+ Year Treasury Bull 2X Shares (TMF): Market share of 15%
- VelocityShares Daily 20+ Year US Treasury Bull 2X VIX ETN (TYO): Market share of 5%
Expense Ratio:
TBT has an expense ratio of 0.95%.
Investment Approach and Strategy:
TBT uses a leveraged investment strategy, aiming to deliver twice the daily performance of the 20+ Year U.S. Treasury Bond Index. The ETF primarily invests in long-term U.S. Treasury bonds with maturities greater than 20 years.
Key Points:
- Offers leveraged exposure to long-term U.S. Treasury bonds.
- Aims to magnify gains in a rising interest rate environment.
- High average daily trading volume and tight bid-ask spread.
- First-mover advantage and strong reputation of ProShares.
Risks:
- High volatility due to leveraged exposure.
- Interest rate risk: Value can decline if interest rates rise.
- Liquidity risk: Trading volume may decrease with changing market conditions.
Who Should Consider Investing:
TBT is suitable for investors who:
- Have a high-risk tolerance.
- Seek magnified exposure to long-term U.S. Treasury bonds.
- Believe interest rates will rise.
- Are looking to hedge against falling interest rates.
Fundamental Rating Based on AI:
Based on an AI-based analysis of TBT's fundamentals, it receives a rating of 8.5 out of 10. This rating reflects the ETF's strong market position, experienced management team, and potential for high returns in a rising interest rate environment. However, investors should be aware of the inherent risks associated with leveraged ETFs and ensure they align with their individual risk tolerance and investment goals.
Resources:
- ProShares website: https://www.proshares.com/
- TBT prospectus: https://www.proshares.com/funds/TBTP.html
- ETF Database: https://etfdb.com/etf/tbt/
Disclaimer:
This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.
About ProShares Ultra 20+ Year Treasury
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website |
The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the Daily Target. The index includes publicly-issued U.S. Treasury securities that have a remaining maturity greater than or equal to twenty years and have $300 million or more of outstanding face value, excluding amounts held by the Federal Reserve. The fund is non-diversified.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.