Bonds - Going Short with ETFs

Our selection of inverse bonds should not be considered as long-haul investments in their own right

Inverse ETFs move in the opposite direction of their target index and will hedge exposure to rising interest rates (impacting bond or bond ETF holdings) in a portfolio

Whether to hedge or to express a view on expected rate increases, investments in inverse ETFs are temporary by nature and require continuous reevaluation

As further note of caution, all providers of inverse ETFs underscore that their performance will deviate significantly from their benchmark index because of daily reset of the leverage

The selection of ETFs in the theme should not be evaluated over an extensive time frame such as a full year

Performance and volatility (risk exposure) over a period of 1 week to 1 month are valuable market indicators (select your preference on the drop-down menu, at the top right)

Treasuries are short (inverse -1), leveraged at two times the inverse (ProShares UltraShort -2) or leveraged at three times the inverse (ProShares UltraPro Sort -3, Direxxion Bear 3x)

Corporate high yield bonds such as appear relatively little impacted by rising rates, as of this writing

Long only iShares 20+ Year Treasury Bond ETF is included for comparison to track potential trend reversal