Why ProShares’ Timing With Short Treasury ETF Could Be Good
August 20th at 12:15pm by Tom Lydon
ProShares has launched a third short treasury exchange traded fund (ETF), just in time for bearish investors to play any sentiment that Treasury bonds are in a bubble that’s about to pop.
The latest ETF from ProShares is the ProShares Short 20+Year Treasury (TBF). The ETF debuted today on the NYSE Arca. This ETF is meant to track the index at -100% for no longer than a single day.
The index includes all publicly issued, U.S. Treasury securities that have a remaining maturity greater than 20 years, are non-convertible, are rated investment grade, and have a fixed rate.
- The timing of this ETF is great for a number of reasons:
- China could be winding down its purchases of Treasuries
- This fund will complement investment strategies for those who think that bonds may be caught in a “bubble” at the moment, giving a low-cost, convenient way to access the movement if there is one.
- The U.S. dollar could weaken further as the Fed pumps trillions into the economy
For more stories about treasuries, visit our bond category.
Read our special report on leveraged and inverse ETFs to understand how they work.
