IGHG
ProShares Investment Grade-Interest Rate Hedged
📎 Investment Objective
The ProShares Investment Grade-Interest Rate Hedged ETF (IGHG) seeks to provide investment results that correspond to the performance of the Citi Corporate Investment Grade (Treasury Rate-Hedged) Index.
Overview
ETF tracking ProShares Investment Grade-Interest Rate Hedged
Performance
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Investment Summary
📎 Investment Objective
The ProShares Investment Grade-Interest Rate Hedged ETF (IGHG) seeks to provide investment results that correspond to the performance of the Citi Corporate Investment Grade (Treasury Rate-Hedged) Index.
🎯 Investment Strategy
IGHG aims to achieve its objective by investing in a portfolio of investment-grade corporate bonds and using short positions in U.S. Treasury futures contracts to hedge against the negative impact of rising interest rates on the bond portfolio.
✨ Key Features
- Provides exposure to investment-grade corporate bonds with interest rate hedging
- Seeks to mitigate the impact of rising interest rates on the bond portfolio
- Utilizes short positions in U.S. Treasury futures to hedge interest rate risk
- Designed for investors seeking corporate bond exposure with reduced interest rate sensitivity
⚠️ Primary Risks
- Interest rate risk: The fund's hedging strategy may not fully offset the impact of rising interest rates on the bond portfolio
- Credit risk: The fund is exposed to the creditworthiness of the underlying corporate bond issuers
- Liquidity risk: The fund may experience reduced liquidity in the underlying bonds or derivatives
- Tracking error risk: The fund may not perfectly track the performance of its target index
👤 Best For
IGHG may be suitable for investors seeking exposure to investment-grade corporate bonds with reduced interest rate sensitivity. It can be used as a component in a diversified fixed-income portfolio or as a hedge against rising interest rates. Investors should have a medium-term investment horizon and be comfortable with the risks associated with corporate bond and derivative investments.
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