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

By
Devon Layne
March 20, 2012
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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 DAILY DATA

The small-cap fund 'IWM' added money on Thursday, Jan. 22, as net inflows and markets stoked higher by eurozone QE news lifted total U.S.-listed ETF assets above $2 trillion.

A slew of iShares funds, including the eurozone-focused 'EZU,' paced the firm's issuer-leading inflows on Thursday, Jan. 22. The ECB's announcement about aggressive QE in the eurozone stoked markets and lifted total U.S.-listed ETF assets to more than $2 trillion.

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