2Mes
The price of the ETF falls because the underlying bond yields rise.
The fact that you are asking this question speaks against the investment. 🤔
The fact that you are asking this question speaks against the investment. 🤔
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2Mes
@Epi Justified judgment. I'm not invested, I just want to understand it. Since bond yields are rising at the moment, I would have initially assumed that this should be reflected in the ETF.
So since this still contains "old" bonds, it falls because there are already new bonds with better conditions (but this only reflects the current market and can change quickly), then you may be happy to get the old bond interest rates depending on how things go on
So since this still contains "old" bonds, it falls because there are already new bonds with better conditions (but this only reflects the current market and can change quickly), then you may be happy to get the old bond interest rates depending on how things go on
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2Mes
@GGHyperX Nope. Because interest rates rise, the nominal value of the bonds falls. And because the ETFs have a constant maturity, it remains the same, unlike actual bonds, which are back at 100% at the end.
You benefit from rising interest rates through inverse bond ETFs $DSUS
But I wouldn't recommend this either.
You benefit from rising interest rates through inverse bond ETFs $DSUS
But I wouldn't recommend this either.
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