ETF Trends
ETF Trends

ProShares added two new exchange traded funds (ETFs) to their lineup, and both offer 200% leverage to the daily performance of their underlying long-term and intermediate-term Treasury bond indexes.

The new ETFs are the ProShares Ultra 20+ Year Treasury (NYSEArca: UBT) and the ProShares Ultra 7-10 Year Treasury (NYSEArca: UST). [How leveraged and inverse ETFs work.]

The two funds join three other ETFs from the provider that focus on the bond market. One of those funds is the ProShares Ultra Short 20+Year Treasury ETF (NYSEArca: TBT), which has been particularly successful, attracting $4.6 billion in less than two years, according to Ron on Benzinga.

Be aware that leveraged and inverse ETFs work differently than traditional funds. They can be a useful tool for short-term traders who understand how they work, so be sure to understand them before you buy. [Another twist on the leveraged ETF in the works.]

For more stories about new ETFs, visit our new ETF category.

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.