Direxion has launched three single-inverse fixed income exchange-traded funds to permit investors to wager on decreases in interest rates. They are the Total Bond Market Bear 1x Shares, the Daily 7-10 Year Treasury Bear 1x Shares and the Daily 20+ Year Treasury Bear 1x Shares ETFs. They seek 100% of the inverse of the daily performance of, respectively, the Barclays Capital U.S. Aggregate Bond Index, NYSE 7-10 Year Treasury Bond Index and NYSE 20-Year Plus Treasury Bond Index.
“Our new 1x bear funds provide investors with an inverse play on interest rates,” said Dan O’Neill, president of Direxion. “Investors now have the option to offset rate movements with 100% inverse exposure with the 1x bear funds. We also continue to offer exposure of 300% with our 3x 7-10 Year and 20-Year Plus Treasury bull and bear funds. They can also pursue broader inverse exposure to bonds through the Daily Total Bond Market Bear ETF. With rising concern from investors about hedging fixed income positions in their portfolios, we think these funds are timely.”