Proshares Interest Rate Hedged ETFs: IGHG & HYHG Fund

Find Proshares interest rate hedged ETFs review. The funds are Proshares Investment Grade-Interest Rate Hedged ETF (IGHG) & Proshares High Yield-Interest Rate Hedged ETF (HYHG).

Proshares ETF Funds

Interest rate has been rising for the past year. Investors need to get a grip of this rising rate if they invest in bond fund. Various ETF providers have offered a way to hedge through exchange traded funds (ETFs). Proshares offer 2 of these hedge ETFs such as Proshares Investment Grade-Interest Rate Hedged ETF (IGHG) & Proshares High Yield-Interest Rate Hedged ETF (HYHG).

Recently, Proshares provide a big ad show these two bond ETFs. You can find the fund review below. Whether you want to invest in your brokerage accounts or retirement accounts (IRA), you need to find the details about these funds. The investment ad is as follows:

Reducing duration? 

Our ETFs aim to eliminate it.

IGHG Investment Grade-Interest Rate Hedged ETF 

HYHG High Yield-Interest Rate Hedged ETF 

Duration. The lower it is, the more your bond portfolio is protected from rising interest rates. Consider our Interest Rate Hedged Bond ETFs, which each feature:

• A diversified portfolio of investment grade or high yield bonds
• A built-in hedge against rising rates using Treasury futures
• Target duration (sensitivity to interest rate changes) of zero

Learn more by calling 866.296.3820 or visiting ProShares.com 

ProShares – The Alternative ETF Company 

Global Fixed Income | Hedge Strategies | Geared | Inflation and Volatility

Proshares Fund Review

The ProShares High Yield-Interest Rate Hedged (HYHG) was introduced earlier in May 2013, while the ProShares Investment Grade-Interest Rate Hedged (IGHG) was introduced in November 2013. They haven’t had rating from Morningstar yet. The total net assets of HYHG are $95.77 million while IGHG has $32.40 million of assets. IGHG is currently traded at premium 0.69% from its NAV and HYHG at 0.46% premium from its NAV.

More: Best Exchange Traded Funds 2013

The IGHG fund has YTD return of -0.66%. The 30-day SEC yield is 3.98%. It also has 0.04 years of effective duration. The 12-month yield is 3.76%. The top sector breakdown is Finance-Bank (26.20%) and Industrial-Service (20.88%).

The HYHG fund has a yield of 4.84%. This yield is distributed on monthly basis. The CUSIP is 74348A541. It also has -0.20% YTD return as of February 20, 2014. The weighted average yield to maturity is 6.91%. It has total 140 holdings. The top sector breakdowns are Industrial-Service (33.67%), Industrial-Manufacturing (27.93%) and Industrial-Energy (16.99%).

Investing Opinion

• Proshares Investment Grade-Interest Rate Hedged ETF (IGHG) & Proshares High Yield-Interest Rate Hedged ETF (HYHG) are new ETFs. Long term history is still unknown. Federal Reserve may or may not hike interest rate.
• The IGHG fund has an expense ratio fee of 0.30% while The HYHG fund has an expense ratio fee of 0.50%.