Inflation will continue to keep inject anxiety in investors, but rather than fear it, they can trade it with a pair of leveraged ETFs from Direxion Investments.
May 3, 2021
As investors grow more optimistic about the economic recovery, safe-haven assets like Treasury bond ETFs may be losing their appeal.
According to IHS Markit Ltd data, short interest in the
iShares 20+ Year Treasury Bond ETF (NasdaqGS: TLT) has increased to 25% of shares outstanding, the highest level of short interest since early 2017, Bloomberg reports.
Furthermore, investors are dumping exposure to long-term Treasuries. The iShares 20+ Year Treasury Bond ETF has posted outflows every day so far this week, which puts the fund on pace for weekly withdrawals of over $1 billion, its worst weekly outflow since November, according to Bloomberg data.
Meanwhile, investors have shifted over toward the short end of the yield curve. The
March 12, 2021
Inflation fears took a step back this week, but the threat of rising Treasury yields has certainly not evaporated. If that’s the case, it could help to be a bear on benchmark Treasury notes using the
TMV seeks daily investment results before fees and expenses of 300% of the inverse of the daily performance of the ICE U.S. Treasury 20+ Year Bond Index. TMV invests in swap agreements, futures contracts, short positions, or other financial instruments that provide inverse or short leveraged exposure to the index, which is a market value weighted index that includes publicly issued U.S. Treasury debt securities that have a remaining maturity of greater than 20 years.