Van Eck Global introduced a new corporate bond ETF that hedges against rising interest rates.
The Market Vectors Treasury-Hedged High Yield Bond ETF (NYSEARCA:THHY) aims to combine the income potential of high-yield corporate bonds while simultaneously shorting Treasury notes.
"With THHY, investors have the ability to better position their bond portfolios now for a rising interest rate environment, but they can do so while still earning income on the fund and even have upside potential during a low interest rate environment, said Fran Rodilosso, fixed income portfolio manager with Market Vectors. "I believe it is not a question of if, but rather when, we will begin to see rising interest rates."