PST 2x Short
ProShares UltraShort 7-10 Year Treasury
Shorts: Mid Treasuries (IEF)
Expense Ratio
0.95%
Leverage
2x Inverse
Issuer
ProShares
Inception
Jun 2007
PST ETF Fact Check
| What it is | PST is ProShares UltraShort 7-10 Year Treasury, an inverse ETF tied to Mid Treasuries (IEF). |
|---|---|
| Daily target | 2x Inverse exposure before fees, expenses, tracking error, and daily compounding effects. |
| Cost check | Expense ratio shown here: 0.95%. Verify the latest fee, holdings, and prospectus on the issuer page before trading. |
| Holding-period check | Leveraged inverse ETFs are designed around daily objectives; multi-day returns can diverge sharply from the simple inverse multiple. |
Source checks: ProShares ETF pages for current fund documents and the SEC/FINRA leveraged and inverse ETF bulletin for daily reset risk. Inception shown here: Jun 2007.
High Risk Leveraged Product
PST is a 2x leveraged inverse ETF designed for short-term trading only. Daily rebalancing causes significant decay over time. NOT suitable for buy-and-hold investors.
What PST Shorts
The ProShares UltraShort 7-10 Year Treasury (PST) seeks daily investment results that correspond to twice the inverse (-2x) of the daily performance of the ICE U.S. Treasury 7-10 Year Bond Index.
This ETF effectively shorts intermediate-term U.S. Treasury bonds, primarily those tracked by the iShares 7-10 Year Treasury Bond ETF (IEF). It uses derivatives like swaps and futures to achieve its leveraged inverse exposure.
Key Risks
- Compounding Risk: Daily reset can cause performance to diverge significantly from twice the inverse of the index's return over longer periods.
- Interest Rate Risk: If Treasury prices rise (yields fall), PST will lose value.
- High Expense Ratio: The 0.95% fee is high and can erode returns.
- Leverage Risk: Amplifies both gains and losses, increasing volatility.
- Counterparty Risk: Relies on derivatives contracts with other financial institutions.
Best Use Cases
- Tactical Hedge: For investors seeking to hedge a portfolio against a sharp rise in intermediate-term interest rates.
- Short-Term Speculation: For experienced traders making short-term, directional bets on falling Treasury prices.
- Portfolio Diversification: As a small, tactical allocation for sophisticated investors expecting a bond bear market.