TMV: An Effective Interest Rate Hedge, And Leveraged ETF Watchlist.

Fred Piard Investing Group Leader Follow Summary The Direxion Daily 20+ Year Treasury Bear 3X ETF offers -3X daily leverage on long-term Treasuries, making it a popular trading and hedging instrument. TMV’s long-term drift is historically positive, benefiting from trending rate environments, but it can suffer decay during sideways markets due to beta-slippage. Since January 2022, TMV has gained 230.8% as rates surged, demonstrating its effectiveness as an interest rate hedge for fixed-income portfolios. TMV is best used for tactical hedging or trading when rate risk is elevated but should be avoided when interest rate volatility subsides. Quantitative Risk & Value members get exclusive access to our real-world portfolio. See all our investments here » alexsl/iStock via Getty Images The Direxion Daily 20+ Year Treasury Bear 3X ETF ( TMV ) was launched on 4/16/2009 to short the ICE U.S. Treasury 20+ Year Bond Index. TMV is a small but liquid ETF, with $203 million in assets under management and an average daily dollar trading This article was written by Fred Piard 16.5K Followers Follow Fred Piard, PhD. is a quantitative analyst and IT professional with over 30 years of experience working in technology. He is the author of three books and has been investing in data-driven systematic strategies since 2010. Fred runs the investing group Quantitative Risk & Value where he shares a portfolio invested in quality dividend stocks, and companies at the forefront of tech innovation. Fred also supplies market risk indicators, a real estate strategy, a bond strategy, and an income strategy in closed-end funds. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.