FYI: The Treasury yield curve has been steepening since the election, with 10-year yields hitting one-year highs in recent days amid a bond sell-off. In that environment, and in the face of a potential interest rate hike next month, negative-duration bond ETFs could come into the spotlight as investors look to profit from the rate rise.
There are only two funds in this segment, and they haven’t really captured investor attention:
Regards,
Ted
http://www.etf.com/sections/features-and-news/election-boosts-negative-duration-bond-etfs
Comments
http://www.etf.com/sections/features-and-news/using-etfs-hedge-against-rising-rates?nopaging=1
It might be hard to overcome the spread on such thinly traded ETFs. Wouldn't it be more profitable to short treasuries with inverse Bond ETFs? You could also control your exposure