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 …

Read moreIEF + DTYS: A low risk hedge with dividends?

Hedging 7-10 year Treasure bonds with Barclays’ DTYS

This morning I took the plunge, buying equal amounts of IEF (93.10) and DTYS (52.95) this morning, with the goal of getting a low risk return of 1.7% annualized return or better.   Before I bought I was surprised / dismayed to see that DTYS had fallen more per share than IEF had risen—casting doubt on my planned 1:1 hedging ratio.   I looked back …

Read moreHedging 7-10 year Treasure bonds with Barclays’ DTYS