BOSTON (MarketWatch) — Leveraged exchange-traded funds geared to profit from falling prices on long-term Treasury bonds have performed well in February from rising yields, as markets worry about U.S. spending, deficits and inflation.
These bearish or inverse ETFs essentially let investors bet against longer-dated Treasury securities, but they are risky and require close monitoring.
The lineup includes ProShares UltraShort 20+ Year Treasury (NYSE:TBT) and Direxion Daily 30-Year Treasury Bear 3x (NYSE:TMV) , which employ leverage of 200% and 300% on a daily basis, respectively. Inverse ETFs targeting bonds with a shorter duration are ProShares UltraShort 7-10 Year Treasury (NYSE:PST) and Direxion Daily 10-Year Treasury Bear 3x Shares (NYSE:TYO) . ProShares Short 20+ Year Treasury (NYSE:TBF) , meanwhile, does not use leverage.
Bull market for bonds is ending
Click here to read the full article …
