Rising Rates, Falling Bonds, and the Ticking Clock – ProShares – 4.1.21

Overview:
Title: Rising Rates, Falling Bonds, and the Ticking Clock
Date: Thursday, April 1, 2021
Time: 1:00 PM Eastern Daylight Time
Duration: 1 hour

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Summary:

Now On Demand.

Interest rates are rising. This could translate to lost value for many bond funds. The current economic recovery also brings with it developing fears of rising inflation and ongoing higher rates. Interest rate hedged bond ETFs can help prevent rising rates from putting a dent in investors’ fixed income portfolios. Investors can pursue income with these ETFs—which target zero interest rate risk through a built-in hedge against rising rates. Join our discussion to explore:

  • Rising interest rates—how high can they go?
  • The possible impact of a rising rate environment on bond strategies.
  • How IGHG and HYHG ETFs can help play defense as rates rise, while generating income.

Speakers:
Troy Goldstein Troy Goldstein Executive Director, Head of National Accounts ProShares

Troy Goldstein oversees the National Accounts Group for ProShares ETFs and ProFunds mutual funds. Before joining ProShares in 2011, he was Executive Director, Head of Portfolio Distribution Europe with UBS AG. Mr. Goldstein managed nearly 40 sales specialists across Europe focused on discretionary and non-discretionary fee-based portfolio solutions including mutual funds, ETFs and structured products. Before that, Mr. Goldstein was Executive Director, Head of the Investment Solution Sales Team, responsible for ETFs, ETF solutions, Funds, Separately Managed Accounts and UITs in UBS’s U.S. headquarters in Weehawken, NJ. Prior to that, Mr. Goldstein held two positions with UBS in Zurich, Switzerland. He served as Global Products & Marketing’s Head of Marketing & Communications managing new offerings and sales campaigns. Previously in Zurich, Mr. Goldstein was Head of Business Development for UBS International locations driving business growth across Asia, Europe and the U.S. Mr. Goldstein began his career in financial services as a Financial Advisor with PaineWebber, which later became UBS. Mr. Goldstein holds a Juris Doctor from Kensington University Law School and Bachelor’s Degree in business administration–financial management from California State University, Long Beach. Additionally, he has received his certificate of completion from the Securities Industry Institute at the University of Pennsylvania’s Wharton School.
Simeon Hyman, CFA Simeon Hyman, CFA Global Investment Strategist, Head of Investment Strategy ProShares

Simeon Hyman joined ProShares in 2013 as Head of Investment Strategy. Mr. Hyman leads ProShares’ team of investment professionals engaged in portfolio analysis, product research and development, education and the delivery of investment strategies using the company’s ETFs. He and his team are also responsible for the development and publication of research, white papers and other content to present ProShares as a leader in the ETF industry. Prior to ProShares, Mr. Hyman spent several years at Bloomberg where he was Chief Investment Officer for Bloomberg’s technology-driven wealth management business, BloombergBlack. He also served as Chairman of the Investment Committee and led theteam of investment professionals tasked with the continuous delivery of investment advice, research content, and strategic and tactical asset allocation guidance. Before joining bloomberg, Mr. Hyman was Head of Investment Strategy and Due Diligence for UBS. There, he established asset allocation and investment strategies for the $300 billion UBS U.S. Wealth Management business and directed due diligence for the $50 billion separately managed account business. Prior to UBS, Mr. Hyman served as the Chief Investment Officer of Lehman Brothers Trust Company. Mr. Hyman earned bachelor’s and master’s degrees in economics from the University of Connecticut and an MBA from Columbia Business School. He holds Series 7, 24, 63 and 66 FINRA registrations and the Chartered Financial Analyst designation.
Daniel Bush, CFA Daniel Bush, CFA Senior Analyst, Investment Strategy ProShares

Daniel Bush joined ProShares in 2018 as an Investment Strategy Analyst. His responsibilities include portfolio analysis, education, product research and development, and the presentation of investment strategies using the company’s strategic ETFs. Prior to joining ProShares, Mr. Bush served as a Portfolio Manager at BBVA USA, managing money for high net worth individuals, trusts and foundations. Mr. Bush earned a bachelor’s degree in finance from the Ohio State University, hold a Series 7 FINRA registration, and holds the Chartered Financial Analyst (CFA) designation.
FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION. This is not intended to be investment advice. Investing is currently subject to additional risks and uncertainties related to COVID-19, including general economic, market and business conditions; changes in laws or regulations or other actions made by governmental authorities or regulatory bodies; and world economic and political developments. Investing involves risk, including the possible loss of principal. These ProShares ETFs are diversified and entail certain risks, including risks associated with the use of derivatives (swap agreements, futures contracts and similar instruments), imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. Bonds will decrease in value as interest rates rise. High yield bonds may involve greater levels of credit, liquidity and valuation risk than higher-rated instruments. High yield bonds are more volatile than investment grade securities, and they involve a greater risk of loss (including loss of principal) from missed payments, defaults or downgrades because of their speculative nature. Short positions in a security lose value as that security’s price increases. Narrowly focused investments typically exhibit higher volatility. Please see summary and full prospectuses for a more complete description of risks. There is no guarantee any ProShares ETF will achieve its investment objective. IGHG and HYHG do not attempt to mitigate factors other than rising Treasury interest rates that impact the price and yield of corporate bonds, such as changes to the market’s perceived underlying credit risk of the corporate entity. IGHG and HYHG seek to hedge investment grade bonds and high yield bonds, respectively, against the negative impact of rising rates by taking short positions in Treasury futures. The short positions are not intended to mitigate credit risk or other factors influencing the price of the bonds, which may have a greater impact than rising or falling interest rates. These positions lose value as Treasury prices increase. Investors may be better off in a long-only investment grade or high yield investment than investing in IGHG or HYHG when interest rates remain unchanged or fall, as hedging may limit potential gains or increase losses. No hedge is perfect. Because the duration hedge is reset on a monthly basis, interest rate risk can develop intra-month, and there is no guarantee the short positions will completely eliminate interest rate risk. Furthermore, while IGHG and HYHG seek to achieve an effective duration of zero, the hedges cannot fully account for changes in the shape of the Treasury interest rate (yield) curve. IGHG and HYHG may be more volatile than a long-only investment in investment grade or high yield bonds. Performance of IGHG and HYHG could be particularly poor if investment grade or high yield credit deteriorates at the same time that Treasury interest rates fall. There is no guarantee the fund will have positive returns. Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing. ProShares are distributed by SEI Investments Distribution Co. (“SIDCO”), which is not affiliated with the funds’ advisor or sponsor. SIDCO is located at 1 Freedom Valley Drive, Oaks, PA 19456.