Direxion daily 20 year treasury bull 3x: Difference between revisions
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=== What type of product is TMF? === | === What type of product is TMF? === | ||
In simplified terms, TMF is a type of security called a leveraged ETF, which provides 3x magnified exposure to US 20+ years treasury bond prices. Rising bond prices will lead to falling bond yields, thus this product is effectively betting for falling US Federal Funds Rate which is explained in detail in "Macroeconomic effects." | |||
=== What are leveraged ETFs? === | === What are leveraged ETFs? === | ||
Revision as of 16:18, 17 July 2023
The Direxion Daily 20+ Year Treasury Bull & Bear 3X Shares seek daily investment results, before fees and expenses, of 300%, or 300% of the inverse (or opposite), of the performance of the ICE U.S. Treasury 20+ Year Bond Index.[1]
What type of product is TMF?
In simplified terms, TMF is a type of security called a leveraged ETF, which provides 3x magnified exposure to US 20+ years treasury bond prices. Rising bond prices will lead to falling bond yields, thus this product is effectively betting for falling US Federal Funds Rate which is explained in detail in "Macroeconomic effects."
What are leveraged ETFs?
Leveraged ETFs (exchange traded funds) are products which utilises financial derivatives such as option contracts, to amplify returns to a particular index. [2] Leveraged ETFs provide both options to long or short for investors to profit from a bearish or a bullish market through inverse leveraged ETFs.