Treasury ETF Short Interest
Treasury ETF Short Interest Diverges Sharply Across Various Funds and Maturity Sectors
Anonymous
Recent reports showed sharply divergent short-interest moves among Treasury ETFs: short interest in the NEOS Enhanced Income 20+ Year Treasury Bond ETF rose 535% to 23,968 shares, while the US Treasury 20 Year Bond ETF’s short interest climbed 785% to 1,319 shares. By contrast, short interest in the Xtrackers US 0-1 Year Treasury ETF fell 89% to 621 shares. Separately, newly listed September 2027 options on the iShares 7-10 Year Treasury Bond ETF included a $89 put with a $1.70 bid, presenting a potential income strategy for investors willing to buy shares at an effective $87.30 cost basis if assigned. The iShares 20+ Year Treasury Bond ETF’s stated mandate is to track an index of longer-maturity U.S. Treasury securities, investing at least 80% of assets in index components and at least 90% in Treasury securities.
Key Points
1
For IEF’s September 2027 $89 put, the article’s options analysis estimated a 58% chance the contract would expire worthless. If it does, the $1.70 premium would equal a 1.91% return on the cash commitment, or 1.95% annualized.
2
Despite TLTI’s sharp increase in short interest, the article reported that about 30% of its shares were sold short and its days-to-cover ratio was 2.0. TLTI is actively managed and combines long-term Treasury exposure with an options strategy intended to enhance income.
3
UTWY’s short-interest ratio was 0.5 days, with 0.7% of shares sold short. The fund is a passively managed single-bond ETF focused on the most recently issued, on-the-run 20-year U.S. Treasury note.
4
TRSY’s short-interest days-to-cover ratio was 0.0, and 0.1% of its shares were sold short. It tracks an index of U.S. Treasury securities with one to 12 months remaining until maturity.
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