 UBT
is an exchange-traded fund (ETF) offered by ProShares that seeks to
provide investors with double daily exposure to the price movements of
the long-term U.S. Treasury bonds. The ETF uses leverage to achieve
its investment objective, which means that it attempts to provide
investors with twice the daily returns of the underlying index.
As of September 2021, the UBT ETF had a net asset value (NAV) of
approximately $700 million and held a portfolio of U.S. Treasury bonds
with a maturity of more than 20 years. The ETF's expense ratio is
0.95%, which is relatively high compared to other ETFs.
As a
leveraged ETF, UBT is designed to provide investors with amplified
returns, but it is also subject to increased volatility and risk. This
makes it more suitable for experienced and sophisticated investors who
are comfortable with the risks involved.
Overall, the ProShares
Ultra 20+ Year Treasury 2X ETF (UBT) could be a good investment option
for investors looking to gain exposure to long-term U.S. Treasury
bonds. However, it is important to consider the risks associated with
leveraged ETFs and to conduct thorough research before making an
investment decision. Investors should also consider the impact of
changes in interest rates on U.S. Treasury bonds, as this can affect
the value of the ETF.
|
