ProShares Ultra 20+ Year Treasury (UBT)
ARCA ARCA Primary Summary
UBT Chart
UBT: Uncertainty Ignites Recession Fears - Bonds Could Rally
The stock market correction has raised fears of a recession, with the VIX index showing elevated volatility amid geopolitical and domestic uncertainties. The Trump administration's tariff initiatives and energy policies are causing market volatility but could potentially lower inflation and support a bond market rally. February's CPI data indicates receding inflation, suggesting the Fed may continue cutting short-term rates, which could boost economic growth and lower long-term rates.
UBT: Leveraged Exposure To 20-Year Treasuries Would Be Unwise Now
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.
UBT: The Contrarian Levered Play On Treasuries
Long-duration Treasuries might be a buy, especially in a recession; consider ProShares Ultra 20+ Year Treasury ETF for leveraged exposure. UBT aims for 2x daily returns of the ICE U.S. Treasury 20+ Year Bond Index, using swaps for leverage. UBT's moderate leverage and lower expense ratio make it appealing compared to peers like Direxion Daily 20+ Year Treasury Bull 3X Shares.
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ProShares Ultra 20+ Year Treasury Profile
| ARCA Exchange | US Country |
Overview
The company described operates as an investment fund, focusing on creating investment strategies that aim to generate daily returns aligned with a predefined Daily Target. It specializes in investing in financial instruments, particularly focusing on long-term U.S. Treasury securities. By leveraging the expertise of ProShare Advisors, the fund strategically selects investments that are expected to collectively meet its investment goals. The fund places a significant emphasis on U.S. Treasury securities with a remaining maturity of twenty years or more and requires a substantial outstanding face value, ensuring that only securities with more than $300 million of outstanding face value, excluding those held by the Federal Reserve, are considered. Despite its focused investment strategy, the fund is characterized as non-diversified, indicating a concentration of investments in a particular segment of the financial market, which in this case revolves around long-term U.S. Treasury securities.
Products and Services
The products and services offered by the company are centered around its investment fund designed to achieve daily returns aligned with its Daily Target. Here are the main aspects of its offerings:
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Daily Targeted Return Funds:
The primary product of this company is its investment fund aiming for daily returns consistent with its predetermined Daily Target. This involves a careful selection of financial instruments, under the advisement of ProShare Advisors, to match the fund's performance goals daily.
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Long-Term U.S. Treasury Securities Investments:
As a core part of its strategy, the fund focuses on investing in publicly issued, long-term U.S. Treasury securities. These are specifically chosen based on their maturity period, which must be greater than or equal to twenty years, and a significant outstanding face value of at least $300 million. This criterion is set to ensure the securities' reliability and potential for stable returns, making them a cornerstone of the fund's investment strategy.
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Non-Diversified Fund Strategy:
Despite the wide range of potential investments in the financial market, the company adopts a non-diversified fund strategy. This approach means investing a larger portion of its assets in the selected long-term U.S. Treasury securities, as opposed to spreading the investments across a wide variety of assets. This focused strategy is designed to achieve the fund's daily return targets while being transparent about the concentration of investments and the associated risks.
Contact Information
