Treasury Bond Exchange Traded Funds (ETFs)

June 14th, 2007 | Category: Stock Market

With Treasury Bonds being in the news lately I thought I’d take a look at what ETF options are available for investors wanting to take advantage of moves in the bond market. After some quick research, I found only two exchange traded funds in that category which have decent daily trading volume.

iShares Lehman 20+ Year Treasury Bond - Ticker Symbol: TLT
iShares Lehman 1-3 Year Treasury Bond - Ticker Symbol: SHY

For increasingly info on these you can visit the iShares website.

The 20+ Year Treasury Bond ETF (TLT) only invests in bonds that mature

in 20 years or increasingly and thus is the increasingly volatile fund of the two. TLT has traded in a range of 82.20 to 91.80 in the past 52 weeks. On the other hand, The 1-3 Year Treasury Bond ETF (SHY) has traded in a narrow range of 79.26 to 80.60 in the same duration period. Thus, the 20+ Year ETF is the best way to play the volatility in the bond market.

Keep in intellect that both of these funds pay dividends each and every month so whether you decide to short them you will need to pay the dividend out of your own pocket.

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