I'm looking for an instrument to place a bet on rising interest rates in the U.S. If there was something that specifically followed mortgage interest rates, that would be most excellent. Once the feds run out of the trillion dollars they're pumping out to hold down mortgage rates, they're going to rise. That's not a market I trade, so if anyone has some good ideas on the subject, they'd be appreciated.
I have used a couple of these ETF's. Some are more liquid than others. Good Luck! Category: Bond ETFs 1-30 Treasury Ladder Portfolio ETF (PLW) Active Low Duration Fund (PLK) Ameristock/Ryan 1 Year Treasury ETF (GKA) Ameristock/Ryan 10 Year Treasury ETF (GKD) Ameristock/Ryan 2 Year Treasury ETF (GKB) Ameristock/Ryan 20 Year Treasury ETF (GKE) Ameristock/Ryan 5 Year Treasury ETF (GKC) Claymore U.S. Capital Markets Bond ETF (UBD) Claymore U.S. Capital Markets Micro-Term Fixed Income ETF (ULQ) Claymore U.S.-1-The Capital Markets Index ETF (UEM) Emerging Markets Sovereign Debt Portfolio ETF (PCY) Ext Duration Treasury ETF (EDV) High Yield Corporate Bond Portfolio ETF (PHB) Insured CA Municipal Bond Portfolio ETF (PWZ) Insured National Municipal Bond Portfolio ETF (PZA) Insured NY Municipal Bond Portfolio ETF (PZT) Inter-Term Bond ETF (BIV) iShares iBoxx $ High Yield Corporate Bond Fund (HYG) iShares iBoxx US Dollar Investment Grade Corporate Bond Fund (LQD) iShares JPMorgan USD Emerging Markets Bond Fund (EMB) iShares Lehman 1-3 Year Credit Bond Fund (CSJ) iShares Lehman 1-3 Year Treasury Bond Fund (SHY) iShares Lehman 10-20 Year Treasury Bond Fund (TLH) iShares Lehman 20+ Year Treasury Bond Fund (TLT) iShares Lehman 3-7 Year Treasury Bond Fund (IEI) iShares Lehman 7-10 Year Treasury Bond Fund (IEF) iShares Lehman Aggregate Bond Fund (AGG) iShares Lehman Credit Bond Fund (CFT) iShares Lehman Government/Credit Bond Fund (GBF) iShares Lehman Intermediate Credit Bond Fund (CIU) iShares Lehman Intermediate Government/Credit Bond Fund (GVI) iShares Lehman MBS Fixed-Rate Bond Fund (MBB) iShares Lehman Short Treasury Bond Fund (SHV) iShares Lehman TIPS Bond Fund (TIP) iShares S&P California Municipal Bond Fund (CMF) iShares S&P National Municipal Bond Index Fund (MUB) iShares S&P New York Municipal Bond Fund (NYF) Long-Term Bond ETF (BLV) Market Vectors - Lehman Brothers AMT-Free Short Municipal Index ETF (SMB) Market Vectors AMT-Free Long Municipal Index ETF (MLN) Market Vectors Intermediate Municipal Index ETF (ITM) ProShares UltraShort Lehman 20+ Year Treasury Bond ETF (TBT) ProShares UltraShort Lehman 7-10 Year Treasury Bond ETF (PST) Short-Term Bond ETF (BSV) SPDR Barclays Capital TIPS ETF (IPE) SPDR DB International Government Inflation-Protected Bond ETF (WIP) SPDR Lehman 1-3 Month T-Bill ETF (BIL) SPDR Lehman Aggregate Bond ETF (LAG) SPDR Lehman California Municipal Bond ETF (CXA) SPDR Lehman High Yield Bond ETF (JNK) SPDR Lehman Intermediate Term Treasury ETF (ITE) SPDR Lehman International Treasury Bond ETF (BWX) SPDR Lehman Long Term Treasury ETF (TLO) SPDR Lehman Municipal Bond ETF (TFI) SPDR Lehman New York Municipal Bond ETF (INY) SPDR Lehman Short Term Municipal Bond ETF (SHM) Total Bond Market ETF (BND) VRDO Tax-Free Weekly Portfolio ETF (PVI)
TLT is the most popular. At least it's very liquid and its the one I use most. Remember, this is a price of a theoretical/synthetic 20 year t-bond. If you think rates will go higher, you short it.