ProFunds Group, a leading provider of inverse and leveraged ETFs, launched an ETF Thursday designed to provide short exposure to the market for long-term U.S. Treasuries. The ProShares Short 20+ Year Treasury (TBF) is designed to deliver the inverse of the return on the Barclays Capital 20+ Year U.S. Treasury Index for a single day.
Michael L. Sapir, ProFunds Group Chairman and CEO, said:
This new ETF is an useful addition to our two ProShares ETFs currently offering short exposure to the U.S. Treasury market—the ProShares UltraShort 7-10 Year and UltraShort 20+ Year Treasury funds. We are introducing this new ProShare in direct response to strong investor demand for a single beta short treasury fund.
TBF is the latest ProShares products offering inverse and leveraged exposure to Treasuries. Other ProShares ETFs include:
- UltraShort 7-10 Year Treasury (PST)
- UltraShort 20+ Year Treasury (TBT)
Despite the controversy over leveraged and inverse ETFs that refuses to go away, ProShares continues to see strong demand for its products. I would expect TBF to be tremendously popular in coming months, particularly as the possibility of rate hikes by the Federal Reserve become viable once again and concerns over the tremendous debt burden taken on to finance recent stimulus packages continue to swirl.
ProShares, which introduced the first inverse and leveraged ETFs in 2006, now offers 90 ETFs.
View the press release for the new ETF here.
Disclosure: No positions at time of writing.