Inside Rising Rate ETFs

The ProShares High Yield-Interest Rate Hedged ETF (BATS: HYHG), which celebrates its first anniversary next month, offers a combination of high yield and negative duration. With a 30-day SEC yield of almost 4.6%, HYHG has an effective duration of -0.17 years.

HYHG provides exposure to a diversified portfolio of high-yield bonds and holds short positions in Treasury securities to hedge against rising rates. HYHG has a 0.50% expense ratio. [High Yield ETFs With Interest Rate Hedges]

iShares Treasury Floating Rate ETF

Chart Courtesy: iShares

ETF Trends editorial team contributed to this post.