AS INTEREST RATES RISE,
EVEN THE BEST BOND FUNDS ARE AT RISK

Your bonds could be losing money as rates rise. Interest rate hedged ETFs can help cushion the blow.

PROSHARES INTEREST RATE HEDGED BOND ETFs

Interest rate hedged fixed income strategies combine portfolios of bonds with built-in hedges against the effects of rising rates.

PROSHARES INTEREST RATE HEDGED BOND ETFs

Interest rate hedged fixed income strategies combine portfolios of bonds with built-in hedges against the effects of rising rates.

  • ProShares

    ProShares Investment
    Grade—Interest Rate Hedged

  • ProShares

    ProShares High
    Yield—Interest Rate Hedged

ProShares Investment Grade—Interest Rate Hedged (IGHG) and ProShares High Yield—Interest Rate Hedged (HYHG) offer two potential advantages:

IGHG and HYHG have diversified, long-bond portfolios similar to unhedged bond funds. Unlike shorter duration bonds, you generally don’t have to sacrifice yield potential with ProShares Interest Rate Hedged Fixed Income ETFs.

They have even less interest rate sensitivity than short term bonds. IGHG and HYHG’s built-in hedges use short Treasury futures to target a duration of zero—almost no sensitivity to interest rates. Short duration funds, while reducing risk, still have substantial rising rate exposure.

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PROSHARES RESOURCES

Our investment management experts lead the field in hedged bond fund strategies - and our publications are designed to help advisors as they guide their clients’ fixed-income investment strategies.

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    BUILDING THE CASE FOR HEDGING INTEREST RATE RISK

    Corporate credit spreads typically narrow as the economy grows and companies’ financial health improves. This narrowing benefits corporate bonds, both investment grade and high yield.

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    THE RISK OF NORMALIZING INTEREST RATES

    Amid numerous market jitters, should you still worry about rising interest rates? Simply put, yes. Using historical averages, 10-Year Treasury yields should be around 4.5% today. With actual yields of just 2%, even a slow return to normal could drive bond prices down.

PROSHARES RESOURCES

ProShares is a leader in interest rate hedged bond fund strategies—and our publications are designed to help guide advisors and investors as they consider their fixed-income investment strategies.

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    INVESTMENTS TO HELP YOU FACE TODAY’S MARKET CHALLENGES

    ProShares provides investment solutions that go beyond the limitations of conventional investing to meet today’s market challenges.

    As advisors and investors look to address the risks that rising interest rates pose to bond fund values, ProShares has developed two interest rate hedged ETFs designed to meet these specific challenges head-on.

    ProShares Investment Grade—Interest Rate Hedged (IGHG) and High Yield—Interest Rate Hedged (HYHG) funds target zero duration to minimize the impact of interest rate changes on the fixed-income investments within your portfolios.

    Learn More at ProShares.com

    • ProShares

      ProShares Investment Grade—Interest Rate Hedged

      ProShares IGHG offers income potential from a diversified portfolio of high-quality investment grade bonds, and a built-in interest rate hedge against the effects of rising rates.

      Download an IGHG Profile
    • ProShares

      ProShares High Yield—Interest Rate Hedged

      ProShares HYHG offers investors who can tolerate greater risk the potential for higher income from a diversified portfolio of high yield corporate bonds. HYHG also includes a built-in interest rate hedge against the effects of rising rates.

      Download an HYHG Profile