UST vs. TLT
Compare and contrast key facts about ProShares Ultra 7-10 Year Treasury (UST) and iShares 20+ Year Treasury Bond ETF (TLT).
UST and TLT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. UST is a passively managed fund by ProShares that tracks the performance of the Barclays Capital U.S. 7-10 Year Treasury Index (200%). It was launched on Jan 19, 2010. TLT is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 20+ Year Treasury Bond Index. It was launched on Jul 26, 2002. Both UST and TLT 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: UST or TLT.
Key characteristics
| UST | TLT | |
|---|---|---|
| YTD Return | -8.00% | -7.93% |
| 1Y Return | -15.21% | -11.39% |
| 3Y Return (Ann) | -13.28% | -11.29% |
| 5Y Return (Ann) | -4.97% | -4.01% |
| 10Y Return (Ann) | -0.94% | 0.20% |
| Sharpe Ratio | -0.93 | -0.73 |
| Daily Std Dev | 16.35% | 16.71% |
| Max Drawdown | -47.99% | -48.35% |
| Current Drawdown | -43.52% | -42.63% |
Correlation
The correlation between UST and TLT is 0.90, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
UST vs. TLT - Performance Comparison
The year-to-date returns for both investments are quite close, with UST having a -8.00% return and TLT slightly higher at -7.93%. Over the past 10 years, UST has underperformed TLT with an annualized return of -0.94%, while TLT has yielded a comparatively higher 0.20% 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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UST vs. TLT - Expense Ratio Comparison
UST has a 0.95% expense ratio, which is higher than TLT's 0.15% expense ratio.
Risk-Adjusted Performance
UST vs. TLT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for ProShares Ultra 7-10 Year Treasury (UST) and iShares 20+ Year Treasury Bond ETF (TLT). 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
UST vs. TLT - Dividend Comparison
UST's dividend yield for the trailing twelve months is around 4.37%, more than TLT's 3.90% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
UST ProShares Ultra 7-10 Year Treasury | 4.37% | 3.49% | 0.47% | 0.27% | 0.53% | 1.42% | 1.71% | 0.84% | 0.64% | 0.75% | 4.91% | 0.00% |
TLT iShares 20+ Year Treasury Bond ETF | 3.90% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% | 2.67% | 3.26% |
Drawdowns
UST vs. TLT - Drawdown Comparison
The maximum UST drawdown since its inception was -47.99%, roughly equal to the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for UST and TLT. For additional features, visit the drawdowns tool.
Volatility
UST vs. TLT - Volatility Comparison
ProShares Ultra 7-10 Year Treasury (UST) has a higher volatility of 4.87% compared to iShares 20+ Year Treasury Bond ETF (TLT) at 4.20%. This indicates that UST's price experiences larger fluctuations and is considered to be riskier than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.