ProShares Positioning in ETFs

“With a modest amount of capital, these ETNs will allow investors to take a meaningful position in oil,” Hyman told ETF Trends.

Along with rising demand for leveraged and inverse strategies, Hyman expects greater interest for strategic- or smart-beta positions as well.

For example, the ProShares S&P 500 Aristocrats ETF (BATS: NOBL), ProShares Russell 2000 Dividend Growers ETF (BATS: SMDV) and ProShares S&P MidCap 400 Dividend Aristocrats ETF (BATS: REGL) provided targeted exposure to dividend growth stocks that have exhibited a history of raising dividends. The strategy has been an attractive way to focus on quality companies that experience lower volatility to limit risk while providing exposure to any potential upside, along with steady yields.

Moreover, with the Federal Reserve anticipating three more interest rate hikes this year, fixed-income investors are taking a look at interest-rate hedged bond ETF options, like ProShares Investment Grade-Interest Rate Hedged ETF (BATS: IGHG) and ProShares High Yield Interest Rate Hedged ETF (BATS: HYHG), which target a zero duration so the funds have little to no sensitivity to changes in interest rates and may outperform non-rate-hedged bond funds if rates continue to rise.

“Its already affecting income portfolios to the negative side,” Hyman added. “The trend continues. There’s going to be more pain if you’re not hedged after rates falling for 30 years.”

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