SLT vs TBT Fund Comparison

A comparison between SLT and TBT based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on SLT vs TBT

Here's an in depth look at the differences between Salt High truBeta US Market ETF ($SLT) and ProShares UltraShort 20+ Year Treasury ($TBT).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

52% FI Score
  • slt
  • ETF
  • US Stocks
  • Large Blend

Salt High truBeta US Market ETF

Expenses: 0.29% (Better than 1% of similar funds)

This is an OK choice for a Large Blend US Stocks fund. See why »

58% FI Score
  • tbt
  • ETF
  • Alternative
  • Inverse

ProShares UltraShort 20+ Year Treasury

Expenses: 0.90% (Better than 1% of similar funds)

This is an OK choice for a Inverse Alternative fund. See why »

Both $SLT and $TBT are categorized as ETFs. ETFs have an added bonus over mutual funds of being more widely available. Mutual funds are often limited to only the issuing investment brokerage. Since these are both ETFs, you may be able to find these at a wider number of investment apps and websites.

The biggest disadvantage of ETFs is that some platforms only allow you to purchase ETFs in whole shares. So if an ETF is going for $75, you may need to invest in increments of $75. Most 401(k)'s allow for investing down to the penny, but you'll want to verify your platform allows for "fractional ETF Shares".

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

SLT TBT
Market Score 0.5 /10 9.1 /10
Category Score 10.0 /10 0.0 /10
Total 10.5 9.1

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

Winner: $SLT

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, SLT has an expense ratio of 0.29% while TBT has an expense ratio of 0.90%. In this case, both of these funds have a similar fee.

Winner: $SLT (barely)

Fund Size Comparison

One place these two funds differ is in their total assets under management. This is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

In the case of these two funds, SLT is a small fund with 15.1 Million in assets under management. TBT, on the other hand, is a large fund with 435 Million in assets under management.

Winner: $TBT, ProShares UltraShort 20+ Year Treasury

Which Should You Choose? SLT or TBT?

Comparing these two funds isn't an apples to apples comparison. SLT is a US Stocks Large Blend fund, while TBT is a Alternative Inverse fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives SLT a score of 52 and TBT a score of 58.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$SLT

Salt High truBeta US Market ETF

52

Read More
Ratings
Rating Type Rating
Diversification Score 0 /10
Expense Ratio Score 8 /10
Expense Rating 7 /10
Market Score 1 /10
Category Score 10 /10
Overview
Overview Details
Fund Type ETF
Exchange BATS
Expense Ratio 0.290%
Net Assets 15.1 Million
Yield 1.22%
Holdings
Description Info
Market US Stocks
Category Large Blend
Sectors
  • Basic Materials 8.54%
  • Communication Services 1.04%
  • Consumer Cyclicals 17.34%
  • Consumer Defensive 0.00%
  • Energy 18.32%
  • Financial Services 22.80%
  • Healthcare 2.24%
  • Industrials 5.50%
  • Real Estate 2.91%
  • Technology 21.31%
  • Utilities 0.00%
Regions
  • North America 100.00%

$TBT

ProShares UltraShort 20+ Year Treasury

58

Read More
Ratings
Rating Type Rating
Expense Ratio Score 9 /10
Expense Rating 1 /10
Market Score 9 /10
Category Score 0 /10
Overview
Overview Details
Fund Type ETF
Inception Date Apr-29-2008
Exchange NYSE ARCA
Expense Ratio 0.900%
Net Assets 435 Million
Yield 3.12%
Holdings
Description Info
Market Alternative
Category Inverse
Sectors
  • Basic Materials 0.00%
  • Communication Services 0.00%
  • Consumer Cyclicals 0.00%
  • Consumer Defensive 0.00%
  • Energy 0.00%
  • Financial Services 0.00%
  • Healthcare 0.00%
  • Industrials 0.00%
  • Real Estate 0.00%
  • Technology 0.00%
  • Utilities 0.00%

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