TBX provides daily inverse (-1x) exposure to the performance of an index of US Treasurys with 7 to 10 years remaining in maturity. The fund holds a combination of index swaps and US Treasury futures to provide its exposure. As an inverse instrument, TBX appreciates when interest rates rise, making it a daily bet on and/or hedge against rising rates. As a tactical tool, investors can worry a bit less about TBX's expense ratio, but they should pay extra attention to TBX's trading characteristics to determine if it has enough liquidity to support same-day entry and exit. Note: Due to the daily reset feature, TBX requires constant monitoring and rebalancing if used as an interest-rate hedge. TBX changed its underlying index from Bloomberg Barclays U.S. 7-10 Year Treasury Bond Index to ICE U.S. Treasury 7-10 Year Bond Index on October 14, 2016. The change has minimal impact on investor's exposure.
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