[dante]

So I heard this morning that ProShares is now offering a 1x version of their current ultra-short 20y Treasury ETF. The reason I got out of TBT (and have avoided it since then) is that as it's a 2x short fund it's more of a trading vehicle than an medium to long term investment vehicle. Over the long term it's *always* going to underperform the investments it's tied to. So now ProShares is offering TBF which still tracks the 20y Treasury short, but theoretically it should perform closer since there's no leveraging going on.

Do you think that this could be a good medium to long-term vehicle for those who think that there's a Treasury bubble? I'm still not convinced that there is one, but if so it would definitely be something to look at, correct?

 

[stoney]

Let me look into it. I've been looking for a way outside of futures.

 

[dante]

http://news.moneycentral.msn.com/ticker/article.aspx?Feed=BW&Date=20090820&ID=10299112&Symbol=TBF

that's all I got, just a note that it's going to be available. I made some money jumping into (and out of) TBT earlier this winter/spring, but completely understand that leveraged ETFs are ultimately going to provide lower long-term returns than whatever they're tracking (see this post) and so I'm thinking this could be a simple, medium to long-term vehicle for betting against treasuries (other than GLD)...

 

[stoney]

It's on my system. I'll look into it tonight when I have time.