Thursday, January 6, 2011

Ways to Play US Treasuries and Bonds With ETFs

Bullish investors believe Bond will go up, while Bearish Investors believe a bubble is preparing to burst. How do investors play the trend? By buying ETFs. 
The following ETFs are Bullish ETF, tracking the long performance corresponding the appropriate Lehman Brothers Treasury Index.
  1. TLT = Ishares Barclays Lehman 20+ Year Treasuries 
  2. TLH = Ishares Barclays Lehman 10-20 Year Treasuries 
  3. IEF = Ishares Barclays Lehman 7-10 Year Treasuries 
  4. IEF = Ishares Barclays Lehman 3-7 Year Treasuries 
  5. SHY = Ishares Barclays Lehman 1-3 Year Treasuries
  6. AGG = Ishares Lehman Aggregate Bond 
  7. TIP = Ishares Lehman TIPS Bond
And for those who are betting that the bonds bubble will eventually burst here are some investment ideas on the short side (note “ultra” denotes a 2x inverse effect).
  1. TBT = Ishares Barclays UltraShort Lehman 20+ Year Treasuries 
  2. PST = Ishares Barclays UltraShort Lehman 7-10 Year Treasuries 
  3. SHV = IShares Barclays Lehman Short Treasuries

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