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.

http://www.indexuniverse.com/sections/features/6163-ultrasho...

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.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.