With fixed income markets closed yesterday in honor of the Veteran’s Day holiday but with their index linked ETFs trading in the equity markets nonetheless on Monday, it seems appropriate to highlight something in this space today.
One of the largest recipients of new asset inflows in the month of November thus far is that of Intermediate term U.S. Treasury Bond ETFs.
Specifically, ProShares Ultra 7-10 Year Treasury (NYSEArca: UST) has reeled in about $681 million so far in November according to IndexUniverse data, largely due to a huge inflow in the first few days of the month from a tactical manager re-balance (for specific color, kindly contact the desk).
It is no secret that since the U.S. elections concluded, stocks have been largely battered and investors have once again found respite in U.S. Treasury bonds as prices there have risen across the board in recent sessions (depressing yields lower and lower).
UST is designed to provide two times the daily leveraged exposure to the Barclays 7-10 Year Treasury Bond Index, and given the recent action in UST, related ETF, the unleveraged iShares Barclays 7-10 Year Treasury Bond (NYSEArca: IEF), should also remain in focus here. Meanwhile, iShares Barclays 3-7 Year Treasury Bond (NYSEArca: IEI) has gathered $973 million so far this month.