UBT: Leveraged Exposure To 20-Year Treasuries Would Be Unwise Now

Summary

• The ProShares Ultra 20+ Year Treasury ETF (UBT) aims to deliver twice the daily performance of the ICE U.S. Treasury 20+ Year Bond Index.
• UBT manages $116.30M, charges a 0.95% expense ratio, and leverages through swaps with a weighted average maturity of 25.90 years and duration of 17.58 years.
• Key drivers include monetary policy, inflation expectations, growth, geopolitical factors, and compounding from leverage resetting.
• Based on the current risk/reward ratio, I believe that both leveraged and vanilla ETFs that offer long-duration Treasury exposure are not appealing enough.

richcano

The ProShares Ultra 20+ Year Treasury ETF (NYSEARCA:UBT), launched on 01/19/2010 and managed by ProShare Advisors LLC, is a leveraged ETF (LETF) that aims to deliver two times the daily performance of the ICE U.S. Treasury 20+ Year Bond Index. UBT manages $116.30M and charges an

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