Ultra-short-term bond exchange traded funds are bleeding assets as short-term yields rise in anticipation of the Federal Reserve’s eventual interest rate hike.

For instance, the actively managed First Trust Enhanced Short Maturity Fund (NasdaqGM: FTSM), which launched in early August, attracted over $1 billion in new assets over November, burgeoning to about $1.6 billion in assets under management as of the end of November. However, so far this month, FTSM has lost more than half of its AUM and now holds only $768.3 million in assets. [Active ETF Segment Keeps Growing, Attracting Assets]

The First Trust Short-Maturity Fund tracks short-duration, investment-grade, U.S. dollar-denominated securities. The ETF has a 0.2 year effective duration and a 0.38% 30-day SEC yield.

Additionally, the passive index-based iShares Short Treasury Bond ETF (NYSE: SHV) attracted $1.3 billion over November, according to ETF.com data. However, investors pulled $496.1 million from SHV so far this month.

The iShares Short Treasury Bond ETF tracks U.S. Treasury Bonds that mature less than 1 year. SHV has a 0.44 year duration and a 0.12% 30-day SEC yield.

Many investors have turned to ultra-short-duration bond ETFs earlier this to hedge against rising rates. Additionally, others are using the ETFs as a money market or cash alternative. However, short-duration bond yields are rising as market observers anticipate the Fed is moving closer to raising interest rates next year.