ProShares’ High Yield – Interest Rate Hedged ETF (HYHG) has garnered more than USD100m in assets since its launch in May 2013.
HYHG delivers a portfolio of high yield bonds and a built-in interest rate hedge.
“Many investors have been attracted to the income of high yield bonds but are concerned about rising rates,” says Michael Sapir, chairman and CEO of ProShare Advisors. “We believe investors have embraced HYHG because it goes beyond other ways to mitigate the effect of rising rates, like short-term bond funds.”
HYHG goes beyond short-term bond funds by targeting a duration of zero. Duration is a measure of price sensitivity to interest rate changes—the lower the duration, the less sensitive to rate changes.