Loading…
Loading…
ProShares Investment Grade—Interest Rate Hedged ETF offers a built-in hedge against rising interest rates while providing the opportunity for higher yields. IGHG maintains a diversified portfolio of investment-grade corporate bonds and takes short positions in Treasury futures to offset interest rate risk. IGHG offers diversification benefits, potential for higher yields, but does not mitigate credit risk and may have hedging imperfections.
The bets over imminent Fed rate cuts weakened on central banks' cues. These ETFs that offer protection against rising rates are at a 52-week high currently.
The ProShares Investment Grade—Interest Rate Hedged ETF is a fixed-income ETF that seeks to track the performance of the FTSE Corporate Investment Grade (Treasury Rate-Hedged) Index. IGHG has performed well in a rising rate environment, with only a small decline in 2022 and a significant increase in 2023. The fund hedges its duration component through short Treasury futures positions, but this strategy only produces positive results in a rising rates environment.
For investors seeking momentum, ProShares Investment Grade-Interest Rate Hedged ETF IGHG is probably on radar. The fund just hit a 52-week high and is up 10.9% from its 52-week low price of $66.81/share.
Global X recently launched a new ETF Global X Interest Rate Hedge ETF (IRHG).
Join an exclusive Market Outlook webcast with ProShares. Hear the company's insights into today's markets and the potential investing opportunities of 2022.
ProShares thoughts and outlooks on inflation and interest rates. Learn how to hedge against inflation and rising rates with (EQRR), (IGHG), (HYHG), (RINF).
Rising Treasury yields often prompt advisors and investors to embrace short-term bonds and related exchange traded funds, but there are other ideas to consider, including rate-hedged bond ETFs. The ProShares Investment Grade-Interest Rate Hedged ETF (Cboe: IGHG) and ProShares High Yield Interest Rate Hedged ETF (Cboe: HYHG) are two rate hedged ETF strategies that try to eliminate rising rate risks.