# 2X ETF for Higher Rates

> Should you buy TBT before next Fed hike?
- Title: 2X ETF for Higher Rates · 24/7 Wall St. | Shortify
- Summary: Should you buy TBT before next Fed hike? TBT ETF gains 16% yearly as yields rise but daily resets cause losses during choppy markets.
- Keywords: tbt, fed, interest rates, treasury bonds, etf, fed hike, short-term trading, Higher, Rates, 24/7 Wall St.
- Source: 24/7 Wall St. — https://247wallst.com/investing/etf/2026/09/22/this-2x-etf-was-made-for-higher-interest-rates-should-you-buy-before-the-next-fed-hike
- Author: Omor Ibne Ehsan
- Published: 2026-09-22T17:46:22+00:00
- Read time: 1 min
- Topics: tbt, fed, interest rates, treasury bonds, etf, fed hike, short-term trading
## Fed raises rates
The Federal Reserve raised its policy rate on September 17, 2026, a quarter-point move from 3.75% to 4%.
## TBT barely moves
ProShares UltraShort 20+ Year Treasury closed at $38.62 on September 21, essentially flat across four sessions after the hike.
## TBT's mechanism
TBT delivers two times the daily inverse return of long-dated Treasuries, gaining 16% over one year as yields backed up.
## Daily reset tax
From September 17 through September 21, TBT gained 0.08% but lost 2% over the week due to daily resets.
## Path matters most
TBT works if yields trend higher but loses gains if yields zigzag, as daily resets compound losses.
## Who should buy TBT
Tactical traders with a defined view on next Fed move and exit plan can use TBT; retirees and income investors should look elsewhere.
## Key takeaway

TBT ETF gains 16% yearly as yields rise but daily resets cause losses during choppy markets.