Bond prices and Yield
Bond prices and yield have an inverse relationship. As selling pressure mounts on bonds, prices drop and causes yields to go up.
ETFs tracking Bond Market
Here’s a table of useful ETFs for trading the bond market, categorized by their focus and leverage:
| ETF | Name | Type | Leverage | Description |
|---|---|---|---|---|
| TLT | iShares 20+ Year Treasury Bond ETF | Treasury Bonds | None | Tracks long-term U.S. Treasury bonds (20+ years). |
| TMF | Direxion Daily 20+ Year Treasury Bull 3X Shares | Leveraged Treasury | 3x Long | Amplifies the daily performance of TLT by 3x. |
| TBT | ProShares UltraShort 20+ Year Treasury | Leveraged Treasury | -2x Short | Provides -2x exposure to the performance of long-term Treasury bonds. |
| IEF | iShares 7-10 Year Treasury Bond ETF | Treasury Bonds | None | Tracks medium-term U.S. Treasury bonds (7-10 years). |
| SHY | iShares 1-3 Year Treasury Bond ETF | Treasury Bonds | None | Tracks short-term U.S. Treasury bonds (1-3 years). |
| EDV | Vanguard Extended Duration Treasury ETF | Long-Duration Bonds | None | Focuses on zero-coupon Treasury bonds with long durations. |
| BND | Vanguard Total Bond Market ETF | Aggregate Bonds | None | Broad exposure to U.S. investment-grade bonds across various maturities. |
| AGG | iShares Core U.S. Aggregate Bond ETF | Aggregate Bonds | None | Tracks the U.S. investment-grade bond market, similar to BND. |
| HYG | iShares iBoxx $ High Yield Corporate Bond ETF | Corporate Bonds | None | Tracks high-yield (junk) corporate bonds. |
| JNK | SPDR Bloomberg High Yield Bond ETF | Corporate Bonds | None | Another high-yield corporate bond ETF. |
| LQD | iShares iBoxx $ Investment Grade Corporate Bond ETF | Corporate Bonds | None | Tracks investment-grade corporate bonds. |
| PFF | iShares Preferred and Income Securities ETF | Preferred Securities | None | Focuses on preferred shares and income securities. |
| ZROZ | PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF | Long-Duration Bonds | None | Tracks zero-coupon Treasury bonds with extended durations. |
| TLH | iShares 10-20 Year Treasury Bond ETF | Treasury Bonds | None | Tracks Treasury bonds with maturities between 10 and 20 years. |
| UST | ProShares Ultra 7-10 Year Treasury | Leveraged Treasury | 2x Long | Provides 2x daily exposure to the performance of 7-10 year Treasury bonds. |
| UBT | ProShares Ultra 20+ Year Treasury | Leveraged Treasury | 2x Long | Provides 2x daily exposure to the performance of TLT. |
| TBF | ProShares Short 20+ Year Treasury | Inverse Treasury | -1x Short | Provides -1x exposure to long-term U.S. Treasury bonds. |
