ETFs that seek inverse returns on bond indexes have been among the top performers as of late. Tuesday's WSJ Fund Track highlighted ETFs that short Treasury bonds. In the past week these funds have seen their returns increase as the yield on 10-year notes reached a six-month high and exceeded 3.7%.

One fund the WSJ mentioned is ProShares UltraShort Lehman 20+ Year Treasury , which rose 51.4% this year and is ranked according to Morningstar data as a top performer in 2009. The ProShares fund offers 200% leveraged inverse returns of a long-term Treasury-bond index.

Other funds named include the April-listed Direxion Daily 10-Year Treasury 3x Shares and Daily 30-Year Treasury Bear 3x Shares. The Direxion funds offer an even more ambitious leverage of 300% on a daily basis.

 

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