New exchange traded funds (ETF) continue to flood the markets, and this week has no shortage of variety. Direxion has a new line up of single-exposure bond ETFs.
Oliver Ludwig for Index Universe reports Direxion rolled out three single-exposure bond ETFs, the latest sign that ETF sponsors are thinking ahead should the bond-market rally.[The ETF World Gets Bigger.] The new ETFs that seek 100% of the inverse of the daily performance of the Barclays Capital U.S. Aggregate Bond Index, NYSE 7-10 Year Treasury Bond Indes, and NYSE 20-Year Plus Treasury Bond Index. “our new 1x bear funds provide investors with an inverse play on interest rates. Investors now have the option to offset rate movements with 100% inverse exposure with the 1x bear funds,” said Dan O’Neill, Direxion Shares’ President.
- Daily Total Bond Market Bear 1x Shares (NYSEArca: SAGG)
- Daily 7-10 Year Treasury Bear 1x Shares (NYSEArca: TYNS)
- Daily 20 Year Plus Treasury Bear 1x Shares (NYSEArca: TYBS)
Likewise, ProShares is putting on their best game to compete. ProShares Short High Yield (NYSEArca: SJB) launched this week, giving exposure to the inverse of the high yield bond market. Hung Tran for Mutual Fund Wire reports the fund can be used as a hedge against potential declines. [ProShares Launches An Inverse High Yield ETF.]
It’s important to understand how inverse and leveraged ETFs work; for more information about bonds and leveraged ETFs, visit our bond ETF and long-short ETF categories.
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.