TMF vs. UST
Compare and contrast key facts about Direxion Daily 20-Year Treasury Bull 3X (TMF) and ProShares Ultra 7-10 Year Treasury (UST).
TMF and UST are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. 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. 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. Both TMF and UST 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: TMF or UST.
Key characteristics
| TMF | UST | |
|---|---|---|
| YTD Return | -29.39% | -9.19% |
| 1Y Return | -47.14% | -16.33% |
| 3Y Return (Ann) | -41.43% | -13.58% |
| 5Y Return (Ann) | -25.13% | -5.22% |
| 10Y Return (Ann) | -10.43% | -1.04% |
| Sharpe Ratio | -0.95 | -0.93 |
| Daily Std Dev | 48.81% | 16.35% |
| Max Drawdown | -92.18% | -47.99% |
| Current Drawdown | -90.76% | -44.24% |
Correlation
The correlation between TMF and UST 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
TMF vs. UST - Performance Comparison
In the year-to-date period, TMF achieves a -29.39% return, which is significantly lower than UST's -9.19% return. Over the past 10 years, TMF has underperformed UST with an annualized return of -10.43%, while UST has yielded a comparatively higher -1.04% 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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TMF vs. UST - Expense Ratio Comparison
TMF has a 1.09% expense ratio, which is higher than UST's 0.95% expense ratio.
Risk-Adjusted Performance
TMF vs. UST - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily 20-Year Treasury Bull 3X (TMF) and ProShares Ultra 7-10 Year Treasury (UST). 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
TMF vs. UST - Dividend Comparison
TMF's dividend yield for the trailing twelve months is around 3.96%, less than UST's 4.43% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TMF Direxion Daily 20-Year Treasury Bull 3X | 3.96% | 2.82% | 1.62% | 0.13% | 0.48% | 0.94% | 1.49% | 0.41% | 0.00% | 0.00% | 0.00% | 0.57% |
UST ProShares Ultra 7-10 Year Treasury | 4.43% | 3.49% | 0.47% | 0.27% | 0.53% | 1.42% | 1.71% | 0.84% | 0.64% | 0.75% | 4.91% | 0.00% |
Drawdowns
TMF vs. UST - Drawdown Comparison
The maximum TMF drawdown since its inception was -92.18%, which is greater than UST's maximum drawdown of -47.99%. Use the drawdown chart below to compare losses from any high point for TMF and UST. For additional features, visit the drawdowns tool.
Volatility
TMF vs. UST - Volatility Comparison
Direxion Daily 20-Year Treasury Bull 3X (TMF) has a higher volatility of 12.27% compared to ProShares Ultra 7-10 Year Treasury (UST) at 4.76%. This indicates that TMF's price experiences larger fluctuations and is considered to be riskier than UST based on this measure. The chart below showcases a comparison of their rolling one-month volatility.