HYKE

📎 Investment Objective

The Vest 2 Year Interest Rate Hedge ETF (HYKE) seeks to provide investment exposure that aims to hedge against the potential negative impact of rising interest rates over a 2-year time horizon.

✨ Key Features

• Seeks to provide a hedge against rising interest rates over a 2-year time horizon
• Invests in a portfolio of fixed income securities and derivatives to generate returns as rates increase
• Expense ratio of 0.00%
• Limited performance history as the fund is relatively new

⚠️ Primary Risks

• Interest rate risk: The fund's performance is tied to the movement of interest rates, and it may not effectively hedge against all interest rate changes
• Derivative risk: The use of derivatives such as futures and swaps introduces additional risks related to leverage, liquidity, and counterparty credit
• Limited track record: With a limited performance history, the fund's long-term effectiveness as an interest rate hedge is unproven
• Lack of diversification: As a specialized fund, HYKE may not provide sufficient diversification for a broader investment portfolio

👤 Best For

HYKE may be suitable for investors seeking to hedge the interest rate risk in their fixed income allocations, particularly those with a 2-year investment horizon. However, due to the fund's limited track record, it may be most appropriate as a small position within a diversified portfolio, rather than as a core holding.