Related: Treasury Yields Could Be on the Rise

Bond investors would usually move down the yield curve to hedge against rising rates as a lower duration bond fund would have a lower sensitivity to changes in interest rates. However, while moving down the yield curve provides a greater level of safety, lower duration bond funds come with less appealing yields.

Data suggest investors are embracing IGHG in this rising rates environment. The ETF had nearly $595 million in assets under management at the end of the the first quarter. Year-to-date, investors have added $175.57 million to the fund.

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