ETF Bond Type: Inverse Bonds

Inverse Bonds are an increasingly popular type of ETF (Exchange Traded Fund). These funds have the ability to benefit from declining activities in the underlying debt security group. They are constructed to provide a portfolio of bonds and have an inverse relationship with the benchmark index. This enhanced diversification advantages can potentially reduce volatility and add protection against fluctuations in any given market. Because they are bought and sold like common stocks, they also allow investors quick access to this type of strategy. Inverse Bond ETFs may be advantageous for investors wishing to take advantage of a decline in the bond market without taking long positions and assuming the associated risks.