ProShares debuts triple-leveraged inverse 20-year Treasury ETF

Mar 29th, 2012 | By | Category: Alternatives / Multi-Asset

ProShares, a leading US-based provider of leveraged and inverse ETFs, has announced the launch of ProShares UltraPro Short 20+ Year Treasury ETF (NYSE: TTT).

ProShares debuts triple-leveraged inverse 20-year Treasury ETF

ProShares has launched a 3x leveraged inverse 20-year Treasury ETF designed to help investors hedge against, or potentially benefit from, declines in long-term Treasury bonds.

TTT seeks to provide -3x the daily performance of the Barclays Capital US 20+ Year Treasury Bond Index, before fees and expenses.

TTT is the third ProShares ETF providing inverse exposure to long-term Treasuries. In addition to TTT, ProShares offers -2x and -1x long-term Treasury ETFs, the ProShares UltraShort 20+ Year Treasury ETF (NYSE: TBT) and the ProShares Short 20+ Year Treasury ETF (NYSE: TBF).

Commenting, Michael Sapir, Chairman and CEO of ProShare Advisors, said: “Interest in TBT and our other inverse Treasury ETFs has been strong, with many investors concerned about the potential for rising rates.

“We are pleased to add TTT to our lineup of ETFs for investors seeking to help hedge against or potentially benefit from declines in long-term Treasuries.”

ProShares introduced the first inverse Treasury bond ETFs in April 2008. The firm has nearly $5 billion of assets in inverse ETFs on long-term Treasury bonds.

Potential investors should be aware of the increased risks associated with inverse and leveraged products before undertaking such an investment.  In particular, investors should understand that due to the compounding of daily returns, returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period.

TTT trades on NYSE Arca and has a TER of 0.95%.

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