For investors seeking momentum, Direxion Daily 7-10 Year Treasury Bear 3X Shares (TYO - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 20% from its 52-week low price of $13.12/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
TYO in Focus
This fund seeks to deliver three times (300% or 3x) the inverse of the performance of the ICE U.S. Treasury 7-10 Year Bond Index. The underlying index is market-value weighted and includes publicly issued U.S. Treasury securities that have a remaining maturity of greater than seven years and less than or equal to 10 years. TYO charges 0.95% in expense ratio (see: all the Inverse Bond ETFs here).
Why the Move?
The Treasury corner of the fixed income world has been an area to watch given the spike in yields. This is because 10-year yields have jumped to above 3%, marking the highest level since early 2014. A recent rise in commodity prices, especially oil and metals, has lifted inflation expectations, which in turn is fueling speculation of faster-than-expected rates hike for this year. Since yields and bond prices have a negative relationship, Treasuries have beaten down and thus benefited their inverse counterparts.
More Gains Ahead?
TYO remains strong given a mediocre weighted alpha of 13.41% and a low 20-day volatility of 11.45%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
For investors seeking momentum, Direxion Daily 7-10 Year Treasury Bear 3X Shares (TYO - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 20% from its 52-week low price of $13.12/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
TYO in Focus
This fund seeks to deliver three times (300% or 3x) the inverse of the performance of the ICE U.S. Treasury 7-10 Year Bond Index. The underlying index is market-value weighted and includes publicly issued U.S. Treasury securities that have a remaining maturity of greater than seven years and less than or equal to 10 years. TYO charges 0.95% in expense ratio (see: all the Inverse Bond ETFs here).
Why the Move?
The Treasury corner of the fixed income world has been an area to watch given the spike in yields. This is because 10-year yields have jumped to above 3%, marking the highest level since early 2014. A recent rise in commodity prices, especially oil and metals, has lifted inflation expectations, which in turn is fueling speculation of faster-than-expected rates hike for this year. Since yields and bond prices have a negative relationship, Treasuries have beaten down and thus benefited their inverse counterparts.
More Gains Ahead?
TYO remains strong given a mediocre weighted alpha of 13.41% and a low 20-day volatility of 11.45%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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