When the 10 year yield goes down, this ETF seems to go down roughly about 1 pt for every .02 of yield. When rates are rising, TMV doesn't move up with nearly that type of ratio. In mid March, rates were 2.40 and TMV was 85. If one were to buy TMV down here and rates went back to 2.40, would this ETF be trading back at 85? I've been following this ETF for a while and I'm looking for a good entry point.
ax, this ETF has a decay rate of about 30%/year. If bonds stayed steady for one year, you would lose 30% in TMV. Theses ETF's are made for very short term trades and you have to have the direction right.