ETFs To Short Treasuries Some investors concerned about a potential bubble under long-term bonds have moved to shorten up their duration exposure, tilting fixed income exposure towards lower-yielding securities that won’t be battered as severely if rates head higher or investors regain some of their appetite for risk. For more aggressive investors looking to capitalize on a potential deflation of a bond bubble, there are a handful of ETF options designed to provide inverse exposure to long-term Treasuries: •ProShares Short 20+ Year Treasury (TBF): This inverse ETF seeks to deliver daily results that are equal to -100% of the Barclays Capital U.S. 20+ Year Treasury Index, a benchmark consisting of long-dated Treasuries. Because TBF resets exposure daily, the returns over multiple trading sessions won’t necessarily correspond to the inverse of the related benchmark; performance over extended periods of time will depend on the path taken by the bond index. •ProShares UltraShort Barclays 20+ Year Treasury (TBT): This fund is similar to TBF, but instead offers -200% leverage on the same index. That means that TBT seeks to deliver daily results that correspond to -200% of the change in the reference benchmark. Reflecting the tremendous popularity in short exposure to long-dated Treasuries in the current environment, TBT has become the largest leveraged ETF on the U.S. market; assets currently stand at more than $4 billion. •Direxion Daily 20 Year Plus Treasury Bear 3x Shares (TMV): This ETF provides even more leverage, seeking to deliver daily results equal to -300% of the daily return on the NYSE 20 Year Plus Treasury Bond Index. The rally in bond markets has send TMV down nearly 50% this year, but this leveraged ETF could be a powerful tool if the bond bubble begins to deflate. •PowerShares DB 3x Short 25+ Year Treasury Bond ETN (SBND): This product also offers 3x inverse leveraged exposure to long-dated Treasuries, but is different from TMV in two key aspects. First, SBND’s exposure resets on a monthly basis, where as the timeframe maintained by TMV is daily in nature. Second, SBND is structured as an exchange- traded note, while TMV is an ETF.