TYA
Simplify Exchange Traded Funds - Simplify Risk Parity Treasury ETF
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Pre-noob here. What app or feed do you use to get all the (premarket...and realtime for that matter) tickers in front of you in order to select those with big premarket movement? Are you able to sort by price change? Filter for a range? Other? Gathering tools and techniques used by others who are successful before I give it a try. Also, which brokerage have you found to work best for you? TYA
I don’t trade futures. I have this trade on in much smaller size using ETFs TUA and TYA. But if the spec size is 2X larger in the 2Y position doesn’t that mean it’s more like 4.65 to 1?
I don't think you even know what you're talking about at this point. His 22x leverage is referring to the notional size of his futures contracts($22m) compared to his total portfolio size($1m). He said nothing about using T-bills as collateral and it's completely irrelevant because his leverage is massively higher than TYA and thus so are his rolling costs.
Yes...his leverage is 22:1, he didn't say he was using t-bills as collateral, which his broker likely doesn't even allow. His collateral is most likely cash. Again, TYA is irrelevant because its leverage is only 3x compared to his massive 22x. Rolling cost is much higher for him than it is for TYA.
>TYA is 3X levered 10Y treasury futures and the timestamped link to the video is explaining the portfolio yield on TYA in the current environment I know what it is, it doesn't apply to the OP because his leverage is much higher. >He says in the OP that treasuries are his collateral. Where?
TYA is 3X levered 10Y treasury futures and the timestamped link in the video is portfolio yield on TYA in the current environment.. He says in the OP that treasuries are his collateral.
TUA for 5X levered 2Y futures and TYA for 3X levered 10Y futures. Size appropriately given the leverage.
FYI for anyone who wants to do this trade in ETF form there is TUA (5X levered 2Y futures) and TYA (3X levered 10Y futures.) Not investment advice.
What is your tolerance for risk of loss? Are you looking for maximum *possible* return with the potential for losing money - essentially a gamble - or the maximum *probable* return bases in historical average performance? The former will be highly concentrated in maximum risk assets so within the realm of reason that might look like 3x leveraged stock funds such as UPRO or TQQQ or the r/HFEA strategy for more balance. For the latter, you’d want to be better diversified and somewhat conservative for a 10-year timeline, and only levering the bonds to stretch for that highest return, so I would suggest as something simple perhaps 80% AVGE (global factor-tilted equities) and 20% TYA (3x intermediate treasury futures).
There are other two special purpose ETFs - TUA and TYA - if you want to bet on short end of the rate curve coming down. The former holds 2yr treasury futures, equivalent to holding 2yr but with the duration sensitivity of 6 year. You still get paid a decent interestnto hold. TYA is the same but levering long on intermediate duration. Good explanation of the strategy: https://www.convexitymaven.com/wp-content/uploads/2023/01/Convexity-Maven-Leverage-is-not-a-four-letter-word.pdf
There are some 'return stacking' ETFs that I think are optimized for long term hold. I don't really understand the ETF plumbing enough to verify, though, but maybe someone else can. Stock+bond: NTSX RPAR UPAR Bond: TYA TUA
Agreed! It’s a lot more sensible and at the least people should use a product like NTSX for a levered 60/40. And if they want to get more exotic, something like 66 NTSX , 24 AVDV, 10 AVES Or get rid of NTSX and use all avantis for scv, qmom, imom, TYA, and KMLM, levered 30-50%.
Leverage is never free, but the closest you can get is using futures. If you want someone else to do it for you, there are some ETFs like TYA which uses leveraged shorter term bonds to mimic long duration. NTSX, which does a leveraged bond ladder that mimics 1.5X a 60/40 portfolio. PSLDX which uses stocks, treasuries, and corporate bonds to achieve about 2x risk parity. Some newer ones like UPAR which includes commodities like gold. There are also many many CEFs that use a bunch of different kinds of leverage. Otherwise you would have to do it yourself using a bunch of different instruments to adjust leverage, bond futures, stock futures, leveraged ETFs, etc, but you can adjust it more easily and save on expenses.
Why has the price of US LTT ETFs (EDV, TLT, ZROZ, TYA…) been going up, lately? Are the several significant upcoming interest rates hikes already priced in?
UPRO: 25% QQQ: 25% TYA: 25% TLT: 25% Rebalanced quarterly