TBT vs. TMF
Compare and contrast key facts about ProShares UltraShort 20+ Year Treasury (TBT) and Direxion Daily 20-Year Treasury Bull 3X (TMF).
TBT and TMF are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TBT is a passively managed fund by ProShares that tracks the performance of the U.S. Treasury 20+ Year Index (-200%). It was launched on May 1, 2008. TMF is a passively managed fund by Direxion that tracks the performance of the NYSE 20 Year Plus Treasury Bond Index (300%). It was launched on Apr 16, 2009. Both TBT and TMF are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: TBT or TMF.
Key characteristics
| TBT | TMF | |
|---|---|---|
| YTD Return | 24.68% | -29.78% |
| 1Y Return | 40.37% | -47.61% |
| 3Y Return (Ann) | 24.43% | -41.54% |
| 5Y Return (Ann) | 3.93% | -25.31% |
| 10Y Return (Ann) | -4.12% | -10.65% |
| Sharpe Ratio | 1.06 | -0.90 |
| Daily Std Dev | 33.94% | 50.00% |
| Max Drawdown | -94.99% | -92.18% |
| Current Drawdown | -86.20% | -90.81% |
Correlation
The correlation between TBT and TMF is -0.99. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
TBT vs. TMF - Performance Comparison
In the year-to-date period, TBT achieves a 24.68% return, which is significantly higher than TMF's -29.78% return. Over the past 10 years, TBT has outperformed TMF with an annualized return of -4.12%, while TMF has yielded a comparatively lower -10.65% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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TBT vs. TMF - Expense Ratio Comparison
TBT has a 0.92% expense ratio, which is lower than TMF's 1.09% expense ratio.
Risk-Adjusted Performance
TBT vs. TMF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for ProShares UltraShort 20+ Year Treasury (TBT) and Direxion Daily 20-Year Treasury Bull 3X (TMF). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
TBT vs. TMF - Dividend Comparison
TBT's dividend yield for the trailing twelve months is around 4.13%, more than TMF's 3.98% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TBT ProShares UltraShort 20+ Year Treasury | 4.13% | 4.98% | 0.42% | 0.00% | 0.27% | 2.12% | 0.99% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
TMF Direxion Daily 20-Year Treasury Bull 3X | 3.98% | 2.82% | 1.62% | 0.13% | 0.48% | 0.94% | 1.49% | 0.41% | 0.00% | 0.00% | 0.00% | 0.57% |
Drawdowns
TBT vs. TMF - Drawdown Comparison
The maximum TBT drawdown since its inception was -94.99%, roughly equal to the maximum TMF drawdown of -92.18%. Use the drawdown chart below to compare losses from any high point for TBT and TMF. For additional features, visit the drawdowns tool.
Volatility
TBT vs. TMF - Volatility Comparison
The current volatility for ProShares UltraShort 20+ Year Treasury (TBT) is 8.57%, while Direxion Daily 20-Year Treasury Bull 3X (TMF) has a volatility of 12.78%. This indicates that TBT experiences smaller price fluctuations and is considered to be less risky than TMF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.