If you own investment grade bonds but fear rising rates will hurt their value, then you should consider owning the Investment Grade-Interest Rate Hedged ETF (IGHG), says Steve Sachs, Head of Capital Markets at ProShares. The IGHG combines a long position in investment-grade bonds with a short hedge in U.S. Treasurys in order to reduce duration risk. ProShares High Yield-Interest Rate Hedged ETF (HYHG) utilizes a similar strategy, yet potentially offers higher yields.
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