TMF seeks to deliver three times the daily return of an index of US Treasury bonds with maturities of 20 years or more and resets its leverage daily. Long-term Treasuries are already highly sensitive to interest rates, and triple leverage magnifies that sensitivity. When rates rose sharply in 2022, the fund lost most of its value. Daily compounding means that results over longer periods can differ from three times the index return. TMF is intended for short-term trading, not long-term investing.
