New Trade for November 24th, 2021

While a rate hike may still be on the distant horizon, it wouldn’t hurt to prepare by considering which investments will benefit when rates do eventually rise.  Investors will also be watching for clues around the first rate hike, which economists say could come as early as June 2022.   

Our trade alert for today highlights a set it and forget it way to help you get ahead of rising rates.    The investment also makes an excellent complement to traditional large-cap equity investments.  Read on to learn how this fund adds an essential layer to a well-diversified portfolio. 



The ProShares Equities for Rising Rates ETF (EQRR) is the first equity ETF specifically designed to outperform traditional U.S. large-cap indexes during periods of rising interest rates.  It targets sectors that have had the highest correlations to 10-year U.S. Treasury yields, and within those sectors, the stocks that have had a strong tendency to outperform as rates rise. Stocks from the  Financials and Basic Materials sectors account for the most significant portion of the fund’s holdings.  Currently, the fund’s top holdings are State Street Corp. (STT), Bank of America (BAC), and Truist Financial (TFC).

EQRR tracks the performance of the Nasdaq Large Cap Equities for Rising Rates Index.  The fund’s goal is to provide relative outperformance, as compared to traditional U.S. large-cap indexes, such as the S&P 500, during periods of rising U.S. Treasury interest rates.  

The index takes the 500 largest listed U.S. stocks and selects the five U.S. large-cap sectors that have demonstrated the highest correlation to weekly changes in 10-Year U.S.  Treasury yields over the last three years.  The index then identifies the top ten stocks in each sector that have the highest correlation of relative performance – compared with 500 of the largest listed U.S. stocks – to changes in the 10-year yields.  The process is repeated quarterly to maintain a portfolio of 50 stocks.  EQRR serves well as a protective measure when rates rise and can complement traditional large-cap equity investments.

ProShares Equities for Rising Rates (EQRR) 

  • Weighted Average Market Cap  $75.59B
  • Price / Earnings Ratio   24.36
  • Price / Book Ratio  2.17
  • YTD Daily Total Return  29.25%
  • YTD Return  40.7%
  • Yield  1.51%
  • Expense Ratio  0.35%
  • Net Assets   7.85M
  • Number of Holdings  51

Where to invest $1,000 right now...

Before you consider buying SH, you'll want to see this.

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Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.

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But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.

Click here to find out the name and ticker of Keith's #1 pick...



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