ProShares' New Short Treasury ETF Arrives Right on Time

ProShares has launched a third short treasury ETF, just in time for bearish investors to play any sentiment that Treasury bonds are in a bubble that’s about to pop.

The latest ETF from ProShares is the ProShares Short 20+Year Treasury (TBF). The ETF debuted yesterday on the NYSE Arca. This ETF is meant to track the index at -100% for no longer than a single day.

The index includes all publicly issued, U.S. Treasury securities that have a remaining maturity greater than 20 years, are non-convertible, are rated investment grade, and have a fixed rate.

• The timing of this ETF is great for a number of reasons:
  • China could be winding down its purchases of Treasuries
  • This fund will complement investment strategies for those who think that bonds may be caught in a “bubble” at the moment, giving a low-cost, convenient way to access the movement if there is one.
  • The U.S. dollar could weaken further as the Fed pumps trillions into the economy

Comments

[DVW:]

"This ETF is meant to track the index at -100% for no longer than a single day."

Ok, but all those reasons you give are LONG TERM trends. Just look at the UNG if you need proof that these derivative ETFs over the long term just plain suck. Personally, I think it's better to trade the ZN futures or short TLT directly.

Aug 21 10:56 AM

[Tom Lydon:]

By watching the trendlines and utilizing a strategy, one could potentially benefit in the short-term with TBF.

Aug 21 12:24 PM

[MarvinMBA:]

Treasuries are a bubble that will burst jusl like all of the other recent bubbles the last 6 or 7 years have. This could be a great investment as I'm looking for 5 year Treasuries to approach 15 percent when the world decides is nothing but a sunk investment with declining inflation adjusted returns....MarvinMBA

Aug 23 12:34 AM

[CLH:]

Bonds will go down in price but too slow to make any profit.

Aug 23 05:06 PM

[publicfleecing:]

who cares......tbt is better

Aug 24 09:56 AM