ETFs Designed to Kill Interest Rate Grinch

Your next video will start in

Recommended Videos

  • Info

  • Comments


Dec. 20 (Bloomberg) –- Bloomberg’s Eric Balchunas reports on ETFs that will protect you against rising interest rates. He speaks to Adam Johnson on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Ben bernanke's last act and big decision was to taper the bond buying program.

If that makes you nervous, don't worry.

We have you covered.

Re: tfs guru is in the house as always on a friday afternoon.

It is what everyone is scared about.

This is not lost on the etf issuers.

One example is the proshares trust a range -- high rate.

A short treasury futures and achieves a duration of zero.

There is no interest rate risk.

You have your cake and eat it too.

If the economy goes south and rates continue to fall, then this could hurt.

This is what hedge fund guys do.

You are playing the spread.

That is a great point.

Etf's have democratize trade.

A short the currency.

The japan one was the first big one.

Another example is the wisdom tree high yield negative duration bond etf.

This does with the other one does, but it short treasury futures to effectively achieve a duration of negative seven years.

This could offset other risks and products you have in your portfolio.

When you say that it has a duration of -7 years, what do you mean?

It effectively shortly treasury and has a -7 year duration.

If rates go up a percent, the values of the bonds in a portfolio should go up in value one percent.

One percent equals one percent.

That is what you get.

That is why people have been using the leverage products to offset their duration.

A lot of people do not like to use leverage products.

These are products that are coming out and saying that they are more adviser friendly and achieving something like that is not easy to do.

Quickly, dividends.

They are important if rates are going up.

I looked through all of the dividend etf --. it is amazing how much do not yield that much.

Then guard yields -- vanguard yields.

Basically this is all financial talk.

It looks there everything and passes through investments.

It has a 7.8% yield.

It is a good yield.

This one is basically a sequel to a popular global stock.

It is a diva dance-seeking animal.

It looks at all of these stocks high and large.

Finally, we have the dividends dog.

Fdog is a popular etf.

One of the raps on the early dividend etf -- this yields 3.6%. particular of the week?

No bow -- nobl.

I have no clue.

It looks at the stocks in the s&p which have increased their dividend yields 425 straight years.

There are about 50 of these companies.

These are the ones that you can

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change