List of Interest Rate Hedged ETFs

Interested in Interest Rate Hedged Funds?

interest rate hedged ETFs
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It seems that interest rate hedged ETFs are gaining in popularity as of late. Currently, there are eleven on the market, three of which were launched by Deutsche Bank just this month. So it seems like there is a bit of a mad rush for these types of funds and there are a few more that are in development as well.

And one of the main reasons these funds are gaining in popularity is the fact that they offer a decently high yield, but with lower interest rate risk.

As opposed to other assets (and funds) that may reduce interest rate risk but usually require the investor to accept a lower current income or ROI.

And they have other attractive features as well. For example, they can preserve capital amid rising interest rates. And they have the same benefits as other ETFs such as the tax advantages.

However, they are not without risk. Lower interest rate sensitivity comes at greater risk from a widening spread between junk bonds and treasuries and interest rate hedged funds have higher fees, with expense caps set to expire soon. So while there are many pros, they have their fair share of cons.

But if you feel that interest rate hedged ETFs are a potential fit for your trading strategy, then I can help you with your research. I've compiled a list of funds designed specifically with these investing goals in mind...

List of Interest Rate Hedged ETFs

  • HYGH - Interest Rate Hedged High Yield Bond ETF
  • HYHG - Pro Shares High Yield Interest Rate Hedged ETF
  • HYZD - Wisdom Tree B of A Merrill Lynch High Yield Bond Zero Duration Fund
  • IGHG - Pro Shares Investment Grade-Interest Rate Hedged ETF
  • IRCP - iShares Barclays Euro Corporate Bond Interest Rate Hedged ETF
  • JGBB - Wisdom Tree Japan Interest Rate Strategy Fund
  • LQDH - iShares Interest Rate Hedged Corporate Bond ETF
  • SLXH - iShares £ Corporate Bond Interest Rate Hedged UCITS ETF
  • THHY - Market Vectors Treasury-Hedged High Yield Bond ETF
  • CLYH - iShares Interest Rate Hedged 10+ Year Credit Bond ETF (recently closed)
  • EMBH - iShares Interest Rate Hedged Emerging Markets Bond ETF (recently closed) 
  • EMIH - Deutsche X Trackers Emerging Markets Bond – Interest Rate Hedged ETF (recently closed) 
  • IGIH - Deutsche X Trackers Investment Grade Bond – Interest Rate Hedged ETF  (recently closed) 
  • HYIH - Deutsche X Trackers High Yield Corporate Bond – Interest Rate Hedged ETF (recently closed) 

And as more interest rate hedged ETFs come to market (as I am sure they will), I will update this list. I will also remove any funds that are closed due to lack of assets or investor interest, but as for now, that doesn't seem to be the case. So check back often for updates.

And keep in mind that while these new funds may be attractive, they do have their risks. As do all investments. So make sure you research each fund thoroughly before making any trades. Watch how the funds react to different market conditions. Understand what is in each fund, especially hedged ETFs, which contain derivatives.

And if you have any questions or concerns about any of the ETFs on this list, be sure to consult a financial professional such broker or your advisor. However, once you have completed your due diligence, then good luck with all of your trades.

And for those who are interested in Currency Hedged ETFs, I have you covered there as well...

List of Currency Hedged ETFs

  • DBAP - Deutsche X Trackers MSCI AC Asia Pacific ex Japan Hedged Equity ETF
  • DBAW - Deutsche X-Trackers MSCI All World ex US Hedged Equity ETF
  • DBBR - Deutsche X Trackers MSCI Brazil Hedged Equity ETF
  • DBEF - Deutsche X Trackers MSCI EAFE Hedged Equity ETF
  • DBEM - Deutsche X Trackers MSCI Emerging Markets Hedged Equity ETF
  • DBEU - Deutsche X Trackers MSCI Europe Hedged Equity ETF
  • DBEZ - Deutsche X Trackers MSCI EMU Hedged Equity ETF
  • DBGR - Deutsche X Trackers MSCI Germany Hedged Equity ETF
  • DBJP - Deutsche X Trackers MSCI Japan Hedged Equity ETF
  • DBKO - Deutsche X Trackers MSCI South Korea Hedged Equity ETF
  • DBMX - Deutsche X Trackers MSCI Mexico Hedged Equity ETF
  • DBUK - Deutsche X Trackers MSCI United Kingdom Hedged Equity ETF
  • DXGE - Wisdom Tree Germany Hedged Equity Fund
  • DXJC - Japan Hedged Capital Goods Fund
  • DXJF - Wisdom Tree Japan Hedged Financials Fund
  • DXJH - Wisdom Tree Japan Hedged Health Care Fund
  • DXJR - Wisdom Tree Japan Hedged Real Estate Fund
  • DXJS - Wisdom  Tree Japan Hedged Small Cap Equity Fund
  • DXJT - Wisdom Tree Japan Hedged Tech Media & Telecom Fund
  • DXKW - Wisdom Tree Korea Hedged Equity Fund
  • DXPS - Wisdom Tree United Kingdom Hedged Equity Fund
  • EUSC - Europe Hedged Small Cap Equity Fund
  • HEFA - iShares Currency Hedged MSCI EAFE ETF
  • HEWG - iShares Currency Hedged MSCI Germany ETF
  • HEWJ - iShares Currency Hedged MSCI Japan ETF
  • HEZU - Currency Hedged MSCI EMU ETF

Disclaimer: At the time of publication of this article, I do not have any open positions in any of the exchange traded products on any of the lists provided above - Mark Kennedy