Sailing through the IEF ex-dividend

IEF, Barclays 7-10 year Treasury note ETF, went ex-dividend April 1st with a declared dividend of $0.248 per share.  Somewhat surprisingly my IEF + DTYS hedge didn’t dip at all, closing at 146.11, the same close as the 31st.  I don’t see any reason why DTYS should go up on IEF’s ex-dividend date—and it is probably just a random thing. I’m not complaining.  During the …

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IEF + DTYS: A low risk hedge with dividends?

I continue to evaluate (and invest in) a hedge position created by going long both IEF, Barclays 7  to 10 year treasury ETF and DTYS, Barclays’ iPath® US Treasury 10-year Bear ETN. The net position, holding equal shares of both securities should yield around 1.7% annually, and since I’m willing to bet that interest rates won’t be going down anytime soon I’m boosting the overall …

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