ProShares, a premier provider of alternative exchange traded funds (ETFs), today announced the launch of ProShares Investment Grade—Interest Rate Hedged (BATS: IGHG), the first investment grade bond ETF in the United States that provides a built-in hedge against rising...
interest rates. The new ETF targets a duration (a measure of interest rate sensitivity) of zero by shorting Treasury futures.
“Investors have been fleeing long-term bond funds as concerns grow over losses that might result from rising interest rates. While many investors have moved to shorter duration bond funds to lessen the impact of rising rates, they remain exposed to some interest rate risk,” said Michael Sapir, Chairman and CEO of ProShare Advisors LLC. “We are pleased to offer the first U.S. ETF to provide investors a portfolio of investment grade bonds with a built-in interest rate hedge designed to target a duration of zero.”
ProShares now offers two interest rate hedged bond ETFs. ProShares High Yield—Interest Rate Hedged (HYHG), launched earlier this year, targets a duration of zero on a diversified portfolio of high yield bonds. Each ETF tracks an index from Citi Fixed Income Indices.
“Citi is pleased to be partnering with ProShares in the development of a series of indices for their suite of alternative ETFs,” said Jayni Kosoff, Managing Director of Citi Fixed Income Indices. “We designed objective, transparent, rules-based indices that not only reflect ProShares’ insightful investment strategies, but also, importantly, investor sentiment. Investors benefit when index innovation brings these elements together.”
About the Citi Corporate Investment Grade (Treasury Rate-Hedged) Index
The Citi Corporate Investment Grade (Treasury Rate-Hedged) Index is a U.S. dollar-denominated index that measures the performance of investment grade corporate debt. The index consists of a long position in investment grade corporate bonds and a duration-matched short position in U.S. Treasury bonds. The investment grade portion of the index offers exposure to the more liquid, cash-pay bonds.
Each issuer is limited to 3% of the market value of the investment grade corporate position of the index. The short position in U.S. Treasury securities is constructed using three U.S. Treasury securities corresponding to the 10-Year U.S. Treasury Note Futures, U.S. Treasury Bond Futures and Ultra U.S. Treasury Bond Futures contracts in an attempt to approximate the maturity distribution of the overall index.
The short position in U.S. Treasury securities attempts to hedge the duration and yield curve exposure of the long position in the investment grade bonds in the Citi Corporate Investment Grade (Treasury Rate-Hedged) Index. This strategy seeks to mitigate the negative impact of rising U.S. Treasury interest rates on the performance of investment grade bonds. Conversely, the strategy may limit the positive impact of falling interest rates.
Source: ETFWorld – WisdomTree
1. PWC – PowerShares Dynamic Market Portfolio – $0.093690
2. PWO – PowerShares Dynamic OTC Portfolio – $0.003840
3. PGJ – PowerShares Golden Dragon Halter USX China Portfolio – $0.029580
4. PWB – PowerShares Dynamic Large Cap Growth Portfolio – $0.011540
5. PWV – PowerShares Dynamic Large Cap Value Portfolio – $0.086640
6. PWP – PowerShares Dynamic Mid Cap Value Portfolio – $0.034700
7. PWT – PowerShares Dynamic Small Cap Growth Portfolio – $0.005010
8. PWY – PowerShares Dynamic Small Cap Value Portfolio – $0.027250
9. PBJ – PowerShares Dynamic Food & Beverage Portfolio – $0.062160
10. PEJ – PowerShares Dynamic Leisure & Entertainment Portfolio – $0.000000
11. PJP – PowerShares Dynamic Pharmaceuticals Portfolio – $0.066080
12. PSI – PowerShares Dynamic Semiconductors Portfolio – $0.014870
13. PTE – PowerShares Dynamic Telecommunications & Wireless P – $0.039140
14. PID – PowerShares International Dividend Achievers Portfolio – $0.071140
15. PFM – PowerShares Dividend Achievers Portfolio – $0.062170
16. PZI – PowerShares Zacks Micro Cap Portfolio – $0.032480
17. PXJ – PowerShares Dynamic Oil & Gas Services Portfolio – $0.013290
18. PIC – PowerShares Dynamic Insurance Portfolio – $0.025460
19. PMR – PowerShares Dynamic Retail Portfolio – $0.011570
20. PKB – PowerShares Dynamic Building & Construction Portfolio – $0.000000
21. PUI – PowerShares Dynamic Utilities Portfolio – $0.144730
22. PXE – PowerShares Dynamic Energy Exploration & Production P – $0.037140
23. PXN – PowerShares Lux Nanotech Portfolio – $0.000000
24. PPA – PowerShares Aerospace & Defense Portfolio – $0.044520
25. PIV – PowerShares Value Line Timeliness Select Portfolio – $0.000000
26. PZJ – PowerShares Zacks Small Cap Portfolio – $0.000000
27. PHO – PowerShares Water Resources Portfolio – $0.004360
28. PRF – PowerShares FTSE RAFI US 1000 Portfolio – $0.144200
29. PIQ – PowerShares Dynamic MagniQuant Portfolio – $0.017500
30. PJM – PowerShares Dynamic Small Cap Portfolio – $0.009890
31. PJF – PowerShares Dynamic Large Cap Portfolio – $0.067650
32. PJG – PowerShares Dynamic Mid Cap Portfolio – $0.022290
33. PYZ – PowerShares Dynamic Basic Materials Sector Portfolio – $0.063830
34. PEZ – PowerShares Dynamic Consumer Discretionary Sector Po – $0.000000
35. PSL – PowerShares Dynamic Consumer Staples Sector Portfolio – $0.082170
36. PXI – PowerShares Dynamic Energy Sector Portfolio – $0.089730
37. PFI – PowerShares Dynamic Financial Sector Portfolio – $0.035450
38. PRN – PowerShares Dynamic Industrials Sector Portfolio – $0.035720
39. PTH – PowerShares Dynamic Healthcare Sector Portfolio – $0.000000
40. PJB – PowerShares Dynamic Banking Portfolio – $0.043020
41. PUW – PowerShares WilderHill Progressive Energy Portfolio – $0.003170
42. PSP – PowerShares Listed Private Equity Portfolio – $0.094890
43. PZD – PowerShares Cleantech Portfolio – $0.000000
44. PKW – PowerShares Buyback Achievers Portfolio – $0.058020
45. PDP – PowerShares DWA Technical Leaders Portfolio – $0.017950
46. PYH – PowerShares Value Line Industry Rotation Portfolio – $0.016660
47. PBP – PowerShares S&P 500 BuyWrite Portfolio – $0.064960
48. PFA – PowerShares Dynamic Developed International Opportuni – $0.043170
49. PAF – PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio – $0.310720
50. PEF – PowerShares FTSE RAFI Europe Portfolio – $0.000000
51. PJO – PowerShares FTSE RAFI Japan Portfolio – $0.000000
52. PIO – PowerShares Global Water Portfolio – $0.045130
53. PBD – PowerShares Global Clean Energy Portfolio – $0.000000
54. PXF – PowerShares FTSE RAFI Developed Markets ex-U.S. Por – $0.053160
55. PXH – PowerShares FTSE RAFI Emerging Markets Portfolio – $0.060080
56. PDN – PowerShares FTSE RAFI Developed Markets ex-U.S. Sm – $0.021810
57. PCA – PowerShares Autonomic Balanced NFA Global Asset Port – $0.049520
58. PAO – PowerShares Autonomic Balanced Growth NFA Global As – $0.036760
59. PMA – PowerShares Active Mega-Cap Fund – $0.000000
60. PSR – PowerShares Active U.S. Real Estate Fund – $0.087510
61. PIN – PowerShares India Fund – $0.038070
Lascia un commento