ProShares Head of Investment Strategy Simeon Hyman and Head of Capital Markets Steve Sachs joined ETF Trends Publisher Tom Lydon at the ETF.com Inside ETFs conference in Hollywood, Fla. to discuss exchange traded funds that can be used to hedge changes in interest rates and how advisors can better access the liquid alternatives universe with ETFs.
In highlighting the ProShares Investment Grade-Interest Rate Hedged ETF (BATS: IGHG) and the ProShares High Yield Interest Rate Hedged ETF (BATS: HYHG), Sachs notes advisors are focused on protecting client portfolios as the potential for rising interest looms.
“The idea is that clients need to maintain that fixed income portfolio and that exposure,” he said. “But they need to do it in a smart way in a rising rate environment. These two products, in particular, allow you to allocate to that space with a duration hedge and you’re not impacted by rising rates.”
Hyman discussed the ProShares Morningstar Alternatives Solution ETF (NYSEArca: ALTS), which tracks the Morningstar Diversified Alternatives Index. ALTS holds seven other ProShares ETFs.
“We partnered with Morningstar to put together ALTS, to put together a package of seven of our ETFs together in an asset allocation that makes sense and is to easy fit into a portfolio of traditional investments,” said Hyman.
Watch the video below to see the full interview.
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