New Inverse Bond ETFs Launched

by: Tom Lydon

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.]

Tisha Guerrero contributed to this article.