In comparison, the iShares Barclays 20+ Year Treasury Bond Fund (NYSEArca: TLT) has been falling of its November high. The ETF dipped 5.4% over the past month as yields on the benchmark 10-year Treasury notes rose above 1.9%. [iShares Treasury Bond ETF Still Falling After Jobs Report]
“Investors interested in this fund essentially think the unprecedented moves by the Federal Reserve to pump liquidity into the financial system will ultimately result in higher inflation and sinking dollar value,” Morningstar analyst Timothy Strauts said in a profile of TBT. “Investors should also hold the thesis that the flight to quality will ultimately reverse itself, causing Treasury rates to rise.”
Inverse ETFs seek to generate the opposite, or -100%, of the underlying asset on a daily basis. Leveraged inverse ETFs try to reflect two or three times the opposite, or -200% and -300%, of the underlying asset on a daily basis. Investors should be aware that inverse and leveraged products are not suitable for long-term buy-and-hold investors. [Inverse and Leverage]
Some other inverse Treasury Bond ETFs include:
- ProShares Short 20+ Year Treasury ETF (NYSEArca: TBF)
- ProShares Short 7-10 Year Treasury ETF (NYSEArca: TBX)
- iPath US Treasury 10-year Bear ETN (NYSEArca: DTYS)
- Direxion Daily 10-Year Treasury Bear 3x Shares ETF (NYSEArca: TYO)
- ProShares UltraShort 3-7 Year Treasury ETF (NYSEArca: TBZ)
For more information on U.S. debt, visit our Treasury bonds category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own TLT.