TUA ETF Explained: Returns, Expense Ratio, Holdings, and Alternative ETFs
Uses short-term Treasury futures to target the returns and risk exposure of intermediate-term Treasuries. A bond strategy product built to maximize capital efficiency.
SubscribeWhat Is This ETF?
This ETF combines US 2-year Treasury futures with leverage to track the performance of the US 7-10 year Treasury index. The key idea is to achieve the same level of interest rate exposure as a traditional intermediate-term bond fund while using less capital.
It suits investors who want exposure to intermediate-term Treasuries through efficient capital allocation and who seek returns from interest rate volatility.
It is an actively managed ETF launched by Simplify in 2022.
How Does It Invest?
| Item | Details |
|---|---|
| Tracking Index | ICE U.S. Treasury 7-10 Year Bond Index (Target) |
| Management Style | Active (futures strategy) |
| Main Instruments | US Treasury futures |
| Dividend Frequency | Monthly |
| Expense Ratio | 0.15% |
The fund uses futures positioned on the short end of the yield curve to match the duration of the longer end. This reduces the costs incurred from holding bonds outright and gives the fund the flexibility to put spare cash to work in other investments.
- Capital-efficient duration implementation
- Intermediate-term interest rate exposure based on short-term futures
Size and Costs
Assets under management (AUM) stand at $471.1M, and the expense ratio is 0.15% per year.
The fund is very different in character from traditional short-term bond ETFs such as VGSH and SHY shown in the table, and in practice it carries volatility on par with intermediate-term Treasuries.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund is structured to react very sensitively to changes in US Treasury yields. In particular, when intermediate-term yields fall, its value tends to rise in line with the performance of the underlying index.
As the view that interest rates have peaked spreads through the market, demand keeps flowing in from investors looking to extend bond duration efficiently, and inflows from money following asset allocation strategies are clearly visible.
Pros and Cons
It is an efficient way to gain intermediate-term Treasury exposure with less capital, but it comes with the complexity of using futures and the risk of losses if yields rebound.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
VGSH, SHY, SCHO and the others shown in the table are stable products that invest in physical short-term Treasuries, whereas this ETF targets an intermediate-term Treasury index. It is therefore more appropriate to compare it with IEF, a direct intermediate-term Treasury alternative, and GOVT, which covers the broader market. If you want higher leverage, you can consider TYD (3x), and if you need inverse exposure, TYO. For cash management, SBIL from the same issuer is also an alternative.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VGSH | Vanguard Short-Term Treasury ETF | $57.89 | +0.2% | $36.8B | 0.03% | 3.76% | -1.3% |
 SHY | iShares 1-3 Year Treasury Bond ETF | $81.67 | +0.2% | $27.5B | 0.15% | 3.6% | -1.2% |
 SCHO | Schwab Short-Term U.S. Treasury ETF | $24.00 | +0.2% | $15.6B | 0.03% | 3.81% | -1.3% |
 SPTS | State Street SPDR Portfolio Short Term Treasury ETF | $28.82 | +0.2% | $7.4B | 0.03% | 3.85% | -1.4% |
 TBLL | Invesco Short Term Treasury ETF | $105.71 | +0.0% | $2.9B | 0.08% | 3.58% | +0.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 SBIL | Simplify Government Money Market ETF | 1.72% | $100.14 | +0.0% | $0.0M | - | 3.62% |
 USLM | United States Lime & Minerals Inc | 0.22% | $119.41 | -3.2% | $3.4B | 25.7 | 0.2% |
 UAMY | United States Antimony Corp | 0.02% | $2.59 | -13.1% | $387.6M | - | - |
Investor Checkpoints
These are the key points to consider before investing in TUA. Because the fund's operating structure differs markedly from that of a typical bond fund, you should first develop a strategic understanding and analysis of it.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 📊 Target Duration | Confirm sensitivity at the level of the intermediate-term Treasury index (7-10 years) | Maintained |
| 💵 Futures Operating Costs | Review rollover costs and tracking error versus the underlying index | Monitoring needed |
| 📈 Interest Rate Path Outlook | Analyze the Fed's monetary policy and the direction of intermediate-term yields | In progress |
| 💧 Using Capital Efficiency | Draw up a capital deployment plan for the whole portfolio | Plan needed |
If interest rates move sideways or rise instead of falling, there is a constant possibility that the costs of holding futures and falling bond prices will leave the fund short of the performance investors expected.
It is an innovative bond product suited to investors who value strategic interest rate exposure and capital efficiency. It can serve as an efficient tool for betting on the direction of the intermediate-term Treasury market.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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