STEPHENMember04/02/2015 at 7:37 pmPost count: 22
My portfolio positions include EDV, TLT, and TMF. What is the conversion equation to convert them all to one position of short TMV? Or is that even recommended?
For example, my portfolio is:
SHY = 15%
ZIV = 20%
JNK = 24%
SPXL = 3%
TMF = 2%
TLT = 16%
EDV = 20%
Should I replace TMF, TLT, and EDV with one positon of short TMV?
Frank GrossmannModerator04/03/2015 at 6:50 amPost count: 161
I would convert all to TMF or TLT
EDV/2=TMF (so it is 10%TMF)
TLT/3=TMF (so it is 5% TMF)
so 17% TMF all together
if you want to convert in TLT
Ben AndersenParticipant04/09/2015 at 2:35 amPost count: 3
But at what cost is it no longer worth it to short the 3 times inverse ETFs? My broker have a “hard to borrow fee” of 2% on TMF – and then the margin rate is added to that – so can fast become 5% or even 10%/year depending on peoples margin rates. Same applies for SPXS (not sure what hard to borrow fee would be there) and other leveraged ETFs. Cheers!
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