Some interest rate hedged ETFs have gained support among investors. For example, the ProShares High Yield-Interest Rate Hedged (BATS: HYHG) debuted a year ago and had $120.2 million in assets under management at the end of the first quarter, according to ProShares.
HYHG tries to reflect the performance of the Citi High Yield (Treasury Rate-Hedged) Index, which tracks a basket of high-yield bonds with a built-in hedge against rising interest rates. The fund tracks bond securities issued from the U.S. or Canada with at least one year remaining to maturity. [High Yield ETFs to Combat Rising Rates]
HYHG has a 30-day SEC yield of 4.68% and a duration of -0.17 years.
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of HYG and LQD.