Using ETFs To Short The Treasury Market? ... Read This First

By
March 20, 2012
Share:

 

The bond market will always remain unpredictable, but investors looking to make a bet on interest rates should keep a few things in mind, according to an article published on Forbes.

Marc Prosser, contributor to Forbes, notes the following three points in the article:

  • The longer the duration of the bond ETF, the more the ETF will rise or fall in value when interest rates change.
  • Changes in Treasury bond prices often do not lead to a proportional move in corporate bond prices.
  • Leveraged ETFs sometimes do a terrible job tracking moves of the underlying investment.

 

The article highlights the ProShares Short 20+ Treasury (NYSEArca: TBF) and the Direxion Daily 20 Year Plus Treasury Bear 1x Shares (NYSEArca: TYBS) as options for investors looking to short Treasurys.

Head over to Forbes.com for the full story.

ETF.COM CHANNELS

Learn why commodity ETFs are an essential part of a diversified portfolio with our Commodity ETFs channel.

Learn why bond ETFs are an essential part of a diversified portfolio with our bond ETF channel.

ETF DAILY DATA

The ETF tracking the Dow Jones industrial average was the inflows leader on Thursday, Feb. 4.

ETF issuers saw little movement in their asset totals on Thursday, Feb. 4.

ETF.COM ANALYST BLOGS

By Matt Hougan

Here's why you should attend the largest ETF conference in the world next month.

By Dave Nadig

Barclays built in a premium to this exchange-traded note, so back away.

By Sumit Roy

Why this probably isn't the start of a bear market.

By Dave Nadig

Many challenges ahead for the rapidly growing industry.

ETF INDUSTRY PERSPECTIVE

By Heidi Richardson

Opportunities in Germany and the eurozone.

By Shirish Malekar

How to protect your portfolio with liquid alts.