Substitute short TMV for EDV, TLT, TMF?

Home » Topics » FAQ » Substitute short TMV for EDV, TLT, TMF?
Substitute short TMV for EDV, TLT, TMF?2017-03-03T15:29:55+00:00
  • Author
    Posts
  • STEPHEN
    Member
    Post 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 Grossmann
    Moderator
    Post count: 167

    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
    TMF*3=TLT
    EDV*1.5=TLT

    • STEPHEN
      Member
      Post count: 22

      Thank you. Maybe this option can be added to the Consolidated Signals and Shares worksheet.

  • Nelson Brady
    Participant
    Post count: 8

    I thought performance wise short TMV was supposed to be better than long TMF or TLT???

  • Alexander Horn
    Keymaster
    Post count: 389

    Yes, we’re working to have all variations ready on the consolidation sheet for the May signals. Takes a bit of time for all the 3x/-3x and simple short options of MYRS, UIS, etc.

  • Ben Andersen
    Participant
    Post 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!

You must be logged in to reply to this topic.