About Tbt and Tbt Trading
ProShares UltraShort 20+ Year Treasury (TBT) is a leveraged inverse Exchange Traded Fund targetting a daily return that is two times the inverse daily performance of the ICE U.S. Treasury 20+ Year Bond Index. It invests in the U.S' fixed income markets, taking short positions and using derivatives such as swap agreements and futures contracts. The fund was established on April 29, 2008. ETFs (Exchange Traded Funds) allow traders to track the performance of specific indices, bonds, or a group of assets.
Like any inverse ETF, the fund is designed to move in the opposite direction of an index (ICE U.S. Treasury 20+ Year Bond Index in this case), using leveraged investments like short sales and futures contracts.
What is a leveraged inverse ETF?
An inverse ETF is an exchange-traded fund (ETF) constructed by using various derivatives to take advantage from a fall in the value of an underlying benchmark. Investing in inverse ETFs works the same way as holding various short positions and involves borrowing securities and selling them, hoping for a later repurchase at a lower price.