3X 20 Year GOVT Bonds (LONG & SHORT)
TMF and TMV are exchange-traded funds (ETFs) managed by Direxion that provide investors with leveraged exposure to U.S. government bonds with different investment objectives.
TMF is the Direxion Daily 20+ Year Treasury Bull 3X Shares ETF, which seeks daily investment results, before fees and expenses, that correspond to 300% of the daily performance of the ICE U.S. Treasury 20+ Year Bond Index. This means that TMF is designed to provide investors with amplified returns when the value of its underlying long-term government bonds increases. As a leveraged ETF, TMF carries higher risk and is typically used by sophisticated investors who are comfortable with the potential for higher volatility and potential losses.
On the other hand, TMV is the Direxion Daily 20+ Year Treasury Bear 3X Shares ETF, which seeks daily investment results, before fees and expenses, that correspond to 300% of the inverse (or opposite) of the daily performance of the ICE U.S. Treasury 20+ Year Bond Index. This means that TMV is designed to provide investors with amplified returns when the value of its underlying long-term government bonds decreases. Like TMF, TMV is a leveraged ETF and carries higher risk than traditional ETFs.
Investors who are bullish on the prospects for long-term U.S. government bonds may consider investing in TMF as a way to gain leveraged exposure to these bonds. Similarly, investors who are bearish on the prospects for these bonds may consider investing in TMV as a way to hedge against potential losses in a bond portfolio or as a way to bet on the future decline of long-term U.S. government bonds.
It’s important to note that leveraged ETFs like TMF and TMV are designed for short-term trading and are not suitable for long-term investing. Due to the compounding effect of leverage, these ETFs can experience significant losses over time if held for an extended period.
In summary, TMF and TMV are leveraged ETFs that provide investors with amplified exposure to long-term U.S. Treasury bonds with different investment objectives. TMF is designed to provide investors with amplified returns when the value of its underlying bonds increases, while TMV is designed to provide investors with amplified returns when the value of its underlying bonds decreases. Investors should carefully consider their investment objectives, risk tolerance, and investment horizon before investing in TMF, TMV, or any other leveraged ETF.