Forget about meme coins for now, have you ever thought about meme bonds?
Let's first talk about what is a meme coin.
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What is TMF?
TMF is an ETF under the financial products company Direxion, with the full name: Direxion Daily 20+ Year Treasury Bull 3X Shares ETF.
Aside from providing 3 times the return on an increase, this ETF's portfolio consists of U.S. Treasury bonds with maturities of over 20 years.
Remember those banks that went bankrupt? Many of them suffered from liquidity risks triggered by purchasing a large amount of long-term government bonds on the asset side, which plummeted in price during interest rate hikes.
Now, many people seem to believe that the Federal Reserve's last interest rate hike was last month, leading to a significant increase in investments in this fund.
It's worth noting that while an increase in TMF can indeed yield 3 times the return, a decrease will also result in a 3 times severe loss. Additionally, TMF's management fees are much higher than other ETFs, making it more suitable for short-term speculation.
Since its inception, this fund has attracted around $2.4 billion in funds, of which approximately $500 million has been lost during the investment process. From the perspective of return on investment and suitability for short-term speculation, it is indeed intriguing.
If the price of TMF starts to rise significantly, it may generate a lot of discussion on forums like Reddit, eventually turning into a meme stock similar to GME.