STRATEGY Interest Rate Hedged
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Interest Rate Hedged
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Investing Strategies for Rising Rates
November 06, 2026

When rates rise, bond investors may look to manage interest rate risk, while equity investors may seek opportunities in areas that have historically benefited from higher yields. In this video, you'll learn how ProShares Investment Grade—Interest Rate Hedged ETF (IGHG), ProShares High Yield—Interest Rate Hedged ETF (HYHG), and ProShares Equities for Rising Rates ETF (EQRR) are designed to help investors navigate a rising rate environment.

Video Transcript:

Higher rates may call for a different portfolio playbook.

For bond investors, the challenge is managing interest rate risk without giving up exposure to corporate credit.

For equity investors, the opportunity may be in identifying sectors and companies that have historically benefited when rates move higher.

That's where targeted strategies can help.

ProShares IGHG and HYHG combine corporate bond exposure with built-in treasury hedges that target zero duration, helping investors address interest rate risk but maintain exposure to investment grade or high yield credit.

Now, on the equity side, EQRR focuses on and stocks that have historically been more positively aligned with rising Treasury yields.

IGHG and HYHG can help defend fixed income allocations, while EQRR offers a way to pursue equity opportunities in a rising rate environment.

Together they provide a more complete rising rate playbook.

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IGHG

Investment Grade - Interest Rate Hedged

Seeks investment results, before fees and expenses, that track the performance of the FTSE Corporate Investment Grade (Treasury Rate-Hedged) Index.

HYHG

High Yield - Interest Rate Hedged

Seeks investment results, before fees and expenses, that track the performance of the FTSE High Yield (Treasury Rate-Hedged) Index.

EQRR

Equities for Rising Rates ETF

Seeks investment results, before fees and expenses, that track the performance of the Nasdaq U.S. Large Cap Equities for Rising Rates Index.

STRATEGY Interest Rate Hedged
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Interest Rate Hedged
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This is not intended to be investment advice. Investing involves risk, including the possible loss of principal. Past performance does not guarantee future results.    

Any forward-looking statements herein are based on expectations of ProShare Advisors LLC at this time. Whether or not actual results and developments will conform to ProShare Advisors LLC’s expectations and predictions, however, is subject to a number of risks and uncertainties, including general economic, market and business conditions; changes in laws or regulations or other actions made by governmental authorities or regulatory bodies; and other world economic and political developments. ProShare Advisors LLC undertakes no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investing involves risk, including the possible loss of principal. ProShares ETFs are generally non-diversified and entail certain risks, including risks associated with the use of derivatives (swap agreements, futures contracts and similar instruments), imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. Please see summary and full prospectuses for a more complete description of risks.

Shares of any ETF are generally bought and sold at market price (not NAV) and are not individually redeemed from the fund. Your brokerage commissions will reduce returns.

HYHG and IGHG do not attempt to mitigate factors other than rising Treasury interest rates that impact the price and yield of corporate bonds, such as changes to the market’s perceived underlying credit risk of the corporate entity. HYHG and IGHG seek to hedge high yield bonds and investment grade bonds, respectively, against the negative impact of rising rates by taking short positions in Treasury futures. These positions lose value as Treasury prices increase. Investors may be better off in a long-only high yield or investment grade investment than investing in HYHG and IGHG when interest rates remain unchanged or fall, as hedging may limit potential gains or increase losses. No hedge is perfect. Because the duration hedge is reset on a monthly basis, interest rate risk can develop intra-month, and there is no guarantee the short positions will completely eliminate interest rate risk. Furthermore, while HYHG and IGHG seek to achieve an effective duration of zero, the hedges cannot fully account for changes in the shape of the Treasury interest rate (yield) curve. HYHG and IGHG may be more volatile than a long only investment in high yield or investment grade bonds. Performance of HYHG and IGHG could be particularly poor if high yield or investment grade credit deteriorates at the same time that Treasury interest rates fall. There is no guarantee the fund will have positive returns.

Bonds will decrease in value as interest rates rise.

High yield bonds may involve greater levels of credit, liquidity and valuation risk than higher-rated instruments. High yield bonds are more volatile than investment grade securities, and they involve a greater risk of loss (including loss of principal) from missed payments, defaults or downgrades because of their speculative nature.

Short positions in a security lose value as that security’s price increases.

EQRR is designed to provide relative outperformance, as compared to traditional U.S. large-cap indexes, such as the S&P 500, during periods of rising U.S. Treasury interest rates. As a result, the fund may be more susceptible to underperformance in a falling rate environment. There can be no guarantee that the fund will provide positive returns or outperform other indexes.

EQRR concentrates its investments in certain sectors. Narrowly focused investments typically exhibit higher volatility.

Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing.

“FTSE®,” "FTSE High Yield (Treasury Rate Hedged)" and “FTSE Corporate Investment Grade (Treasury Rate Hedged)” have been licensed for use by ProShares. FTSE is a trademark of the London Stock Exchange Plc and The Financial Times Limited and is used by the FTSE International Limited ("FTSE") under license. Nasdaq® is a registered trademark of Nasdaq, Inc. and is licensed for use by ProShare Advisors LLC. ProShares ETFs have not been passed on by these entities or their affiliates as to their legality or suitability. ProShares ETFs based on these indexes are not issued, sponsored, endorsed, sold, or promoted by these entities or their affiliates, and they make no representation regarding the advisability of investing in ProShares ETFs. THESE ENTITIES AND THEIR AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES.

ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds’ advisor or sponsor.

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