ProShares has added a new exchange traded fund to its product stable. The ProShares High Yield—Interest Rate Hedged (HYHG) tracks the Citi High Yield (Treasury Rate-Hedged) Index. The index invests in a liquid portfolio of high yield bonds while seeking to mitigate the impact of interest rate movements using Treasury futures.

"We believe that many investors in high yield bond funds may be focused on credit risk but overlook the risk presented by rising rates,” stated Michael Sapir, chairman and chief executive of ProShare Advisors.

“When rates go up, they could be in for an unpleasant surprise. HYHG provides the opportunity to invest in this attractive asset class with less interest rate sensitivity than alternative solutions, including short duration high yield bond funds."

The fund carries a price tag of 50 basis points.

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