Two new ETFs that provide leveraged exposure to long term treasuries were recently launched byProShares. The ProShares Ultra 20+ Year Treasury (UBT) is targeted to deliver investment results that correspond to twice (200%) the performance of the Barclays Capital 20+ Year U.S. Treasury Index for a single day.
ProShares launched an ETF that provides short exposure to long-term treasury bonds. The ProShares Short 20+ Year Treasury (TBF) is built to produce 100% of the inverse performance of the Barclays Capital 20+ Year U.S. Treasury Index for a single day.
To preserve wealth and generate some income, Jim moved a healthy portion of his portfolio to Long Term Treasury Bonds. However, the improving economy combined with the Fed’s massive monetary response to the financial crisis has Jim concerned about the potential for a rising interest rate environment within the next 12 to 18 months.