ETF Filings: Brazil Bonds and Inverse Treasuries

October 13th at 1:00am by Tom Lydon

WisdomTree has filed to launch an actively managed exchange traded fund (ETF) that tracks Brazil bonds, while new exchange traded notes (ETNs) that short Treasuries have come to market.

WisdomTree has filed with the Securities and Exchange Commission (SEC) to launch a Brazil Bond Fund, which will be actively-managed to achieve income and capital appreciation in the fund. The new fund would invest in Brazilian government and corporate bonds, says Shishir Nigam for Active ETFs in Focus. No ticker is available yet. [New ETF Providers May Change the Industry.]

Robert Goldsborough for Morningstar reports that interest in the ETN industry continues to grow. Last week, three new ETNs were added to the growing industry. The new funds provide exposure to merger and acquisition arbitrage, as well as to double inverse 10-year and long bond Treasury futures. [Last Week's Latest ETF Filings.]

The Credit Suisse Merger Arnitrage Liquid Merger ETN (CSMA) is an arbitrage-themed exchange-traded product that bundles together many publicly traded takeover targets  into one product. The goal is to smooth out and diversify the risks to investors who would feel pain if they invested in just one merger target.

JP Morgan also launched two double inverse U.S. Treasury ETNs, the JP Morgan Double Short US Long Bond Treasury Futures ETN (NYSEArca: DSTJ) and the JP Morgan US Double Short  US 10 Year Treasury Futures ETN (NYSEArca: DSXJ). With all this talk of a possible bond bubble, these funds might strike a chord with some investors.

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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