Bulls Chasing Treasuries: Play With Leveraged ETFs

Below, we have highlighted some ETFs that offer leveraged exposure to the Treasuries market. These funds will continue to be investors’ darlings, given the bearishness in the stock market.

Direxion Daily 20+ Year Treasury Bull 3X Shares (TMF - Free Report)

With AUM of $435.3 million, this ETF offers three times exposure to the ICE U.S. Treasury 20+ Year Bond Index. It charges 92 bps in annual fees and trades in average daily volume of 1.5 million shares. The product has risen 51.9% in a month.

ProShares Ultra 20+ Year Treasury (UBT - Free Report)

It seeks daily investment results that correspond to two times the daily performance of the ICE U.S. Treasury 20+ Year Bond Index. It charges 95 bps in annual fees and trades in average daily volume of 29,000 shares. The ETF has AUM of $79.7 million and is up nearly 33% in a month.

ProShares Ultra 7-10 Year Treasury (UST - Free Report)

This fund offers leveraged exposure to the mid-term Treasury market as it seeks to match two times daily performance of the ICE U.S. Treasury 7-10 Year Bond Index. It has amassed $43 million in its asset base and charges 95 bps in fees per year from investors. The ETF trades in lower volume of 22,000 shares a day on average and has gained 12.9% in a month.

Direxion Daily 7-10 Year Treasury Bull 3X Shares (TYD - Free Report)

This product offers three times leveraged exposure to the ICE U.S. Treasury 7-10 Year Bond Index, charging investors 95 bps in fees. It has AUM of $19.9 million and average daily volume of 8,000 shares. The ETF has returned 19.6% in a month.

Bottom Line

Investors should note that these products are suitable only for short-term traders as these are rebalanced on a daily basis.

Still, for ETF investors who are bullish on the fixed income sector, especially Treasuries in the near term, any of the above products could make for an interesting choice. Clearly, a near-term long could be intriguing for those with high-risk tolerance, and a belief that the “trend is the friend” in this corner of the investing world.

1 2
View single page >> |

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.