From 24/7 Wall St. · Omor Ibne Ehsan · · 1m
2X ETF for Higher Rates
Should you buy TBT before next Fed hike?
In brief
Should you buy TBT before next Fed hike? TBT ETF gains 16% yearly as yields rise but daily resets cause losses during choppy markets. Originally reported by 24/7 Wall St..
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.
The headline
TBT ETF gains 16% yearly as yields rise but daily resets cause losses during choppy markets.
