No. of Recommendations: 3
So why this reverse split? Could it be that since the Fed has anchored longer term Treasuries, could this be effecting the management of the fund? By holding Treasuries in a range and then saying that this is the way it will be for years, well that will have a major effect on the volatility that is the essence of derivative markets.

The reverse split is because this sort of index will always trail real performance over the long run. Volatility actually hurts the performance of TBT. A slow and steady trend up in rates is the only thing that will help TBT for the long run as this is not intended as a buy and hold investment. You will also have some decay in TBT in a sideways market, simply due to the cost of the positions.
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