ProShares' New Short Treasury ETF Arrives Right on Time 5 comments
August 21, 2009
| about: TBF
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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
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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.