At a glance
HYHG charges 0.5% a year, above the 0.45% average of the 7 funds most like it (the 6th cheapest of 8). It has $204.4M in assets, the 8th largest of that group; it paid 6.75% of its price in distributions over the past 12 months, monthly. Over the past year it returned +4.8% with distributions reinvested, the best of those 8 funds; over three years it returned +8.6% a year. At its worst it fell 25.5% in the 2020 crash (S&P 500: 33.7%) and 9.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 10 months and 6 months after the lows. Its ten largest positions make up 11.4% of the fund, out of 247 in all.
The short version
ProShares High Yield-Interest Rate Hedged ETF (HYHG) aims to track the FTSE High Yield (Treasury Rate-Hedged) Index. It holds high-yield ("junk") bonds from U.S. and Canadian companies and pairs them with short positions in U.S. Treasury futures. The hedge is meant to offset much of the damage from rising interest rates, so what remains is mostly company credit risk. It costs 0.50% a year, more than broad high-yield ETFs such as SPHY (0.05%) or USHY (0.08%).
Price history
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HYHG +4.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| HYHG official prospectus, to Dec 31, 2025 | — | +5.84% | — | +6.92% | +6.27% | — |
| HYHG price data to Oct 27, 2026 | +3.7% | +4.8% | +8.6% | +6.7% | +5.5% | +4.1% |
- Over the year to Oct 27, 2026, HYHG returned +4.8%, 1st of 8 among similar funds.
- Its 5-year annualized return was +6.7% and its 10-year +5.5%.
- In the 2020 COVID crash it fell 25.5% and regained its old high 9.5 months after the low.
- Its worst full calendar year was 2015 (-9.6%); its best was 2016 (+15.8%).
- The deepest fall in its price history was 25.7% (Jan 15, 2020 to Mar 23, 2020), recovered by Jan 20, 2021.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +3.7% | — |
| 2025 | +5.3% | +5.84% |
| 2024 | +11.4% | +10.84% |
| 2023 | +14.7% | +14.60% |
| 2022 | -1.7% | -1.50% |
| 2021 | +5.8% | +5.51% |
| 2020 | -0.2% | +0.54% |
| 2019 | +12.0% | +11.68% |
| 2018 | -2.0% | -2.20% |
| 2017 | +3.7% | +4.43% |
| 2016 | +15.8% | +14.62% |
| 2015 | -9.6% | — |
| 2014 | -4.1% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 25.5% over that stretch · deepest drop along the way 25.5%, back to its old high 9.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 4.3% over that stretch · deepest drop along the way 9.3%, back to its old high 6.4 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $3.1800 | |
| 2025 | $4.4900 | +4.9% |
| 2024 | $4.2800 | +12.0% |
| 2023 | $3.8200 | +17.4% |
| 2022 | $3.2525 | +14.2% |
| 2021 | $2.8483 | -4.8% |
| 2020 | $2.9914 | -24.6% |
| 2019 | $3.9689 | -0.9% |
| 2018 | $4.0035 | +6.9% |
| 2017 | $3.7467 | +1.9% |
| 2016 | $3.6774 | -7.8% |
| 2015 | $3.9871 | -1.3% |
| 2014 | $4.0383 |
What's inside
As of Aug 31, 2026, the fund held 247 securities; the ten largest made up 11.41% of assets, and 3.88% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| 1261229 BC Ltd. Bonds and notes | 1.54% | |
| Quikrete Holdings, Inc. Bonds and notes | 1.43% | |
| Cloud Software Group LLC Bonds and notes | 1.20% | |
| Meridian Arc Holdco LLC Bonds and notes | 1.20% | |
| Repurchase Agreement RA | 1.15% | |
| Asurion LLC Bonds and notes | 1.12% | |
| Level 3 Financing, Inc. Bonds and notes | 1.01% | |
| Univision Communications, Inc. Bonds and notes | 0.94% | |
| Black Pearl Compute LLC Bonds and notes | 0.93% | |
| Galaxy Helios Data Centers II LLC Bonds and notes | 0.90% | |
| EchoStar Corp. Bonds and notes | 0.88% | |
| PR RNO Property Owner 1 LLC Bonds and notes | 0.87% | |
| Allied Universal Holdco LLC Bonds and notes | 0.83% | |
| Flash Compute LLC Bonds and notes | 0.83% | |
| HUB International Ltd. Bonds and notes | 0.81% |
By country
United States 87.34%Canada 3.43%Bermuda 1.38%United Kingdom 1.04%Jersey 0.99%By issuer
Companies 97%The bonds mature in 5.6 years on average (weighted by size), with an average coupon of 7.42%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $29.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.18%, +0.35%, +1.12%.
How it works
The index is built by FTSE International Limited and has two parts. The first is a long position in fixed-rate corporate bonds that pay cash interest. These bonds come from U.S. and Canadian companies rated below investment grade, between BB+ and C by S&P or Ba1 and Ca by Moody's. Bonds are weighted by market value, with no single issuer above 2%. The second part is a short position in U.S. Treasuries, matched to the bonds' duration. Duration measures how much a bond's price moves when rates change. Both positions reset each month.
The fund keeps at least 80% of its total assets in bonds from the index, and it may hold only a representative sample. It gets the short Treasury exposure through futures on 2-, 5- and 10-year Treasury notes. As of August 31, 2026, it had 247 holdings, and the top ten made up 11.41% of assets. The largest were 1261229 BC Ltd. (1.5%), Quikrete Holdings (1.4%) and Cloud Software Group (1.2%). Average maturity was 5.6 years and the average coupon was 7.42%. Annual portfolio turnover was 79%.
The hedge only covers interest rates. It does nothing about defaults or recession fears, which can hit junk bonds harder than rate moves. When Treasury rates fall, the short position loses money, so the fund can lag unhedged high-yield funds.
What it really costs
- HYHG charges 0.5% a year, versus an average of 0.45% for the similar funds below (6th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $51 in the first year and $628 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HYHG | $51 | $160 | $280 | $628 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
HYHG pays monthly income from high-yield bonds and hedges out most interest-rate risk, but it keeps the full credit risk of junk bonds.
HYHG could add monthly income that is less sensitive to rising rates than a standard high-yield fund. Its trailing 12-month yield was 6.75% as of October 27, 2026. The catch is credit risk, which the hedge does not cover. The fund launched in May 2013, so it has no 2008 record. Its deepest drop, 25.7%, came in the early-2020 COVID sell-off, and it took about 10 months to recover, by January 2021. In 2022 it fell 9.3% between April and June but lost only 1.5% for the full year. Its worst calendar year was 2015, at -9.6%. Someone drawing income in a sharp sell-off could have to sell near the lows. It costs 0.50% a year, or $51 in the first year under the SEC's standard $10,000 example. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income seekers who want monthly payouts from junk bonds, with a 6.75% trailing yield as of October 27, 2026, and less exposure to rising Treasury rates.
- Investors worried about rising interest rates who accept company default risk, since short Treasury futures offset much of the bonds' rate sensitivity.
- Those who want wide diversification: 247 holdings, with the top ten only 11.41% of assets as of August 31, 2026.
Look elsewhere if
- Cost-focused investors: HYHG's 0.50% expense ratio compares with 0.05% for SPHY and 0.08% for USHY.
- Anyone who wants bonds to cushion stock crashes. HYHG fell 25.5% in the 2020 COVID sell-off and took about 9.5 months to recover.
- Investors expecting falling rates to lift bond prices. The short Treasury hedge loses money when rates drop, which mutes those gains.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| HYHG this fund | 5.6 yrs | 0.5% | $204.4M | +4.8% | +8.6% |
| JNK SPDR Bloomberg High Yield Bond ETF | 5.8 yrs | 0.4% | $7.35B | +1.6% | +8.7% |
| SPHY SPDR Portfolio High Yield Bond ETF | 5.4 yrs | 0.05% | $11.33B | +1.8% | +8.9% |
| USHY iShares Broad USD High Yield Corporate Bond… | 5.4 yrs | 0.08% | $28.59B | +1.2% | +7.7% |
| HYG iShares iBoxx $ High Yield Corporate Bond E… | 5.4 yrs | 0.49% | $16.19B | +0.9% | +7.4% |
| SRLN SPDR Blackstone Senior Loan ETF | 5.2 yrs | 0.7% | $5.21B | +3.7% | +7.0% |
| HYLS First Trust Tactical High Yield ETF | 5.2 yrs | 1.05% | $1.62B | +1.6% | +8.3% |
| HYDB iShares High Yield Systematic Bond ETF | 5.2 yrs | 0.35% | $1.61B | +0.9% | +8.7% |
Questions investors ask
Does HYHG pay monthly dividends?
Yes. HYHG pays distributions monthly, funded mainly by interest from its high-yield bonds. Over the 12 months to October 27, 2026, it paid about $4.29 per share, a trailing yield of 6.75%. The bonds in its portfolio had an average coupon of 7.42% as of August 31, 2026. Payments can rise or fall from month to month, and a default by a bond issuer would reduce the income the fund collects.
What's the difference between HYHG and JNK?
Both hold U.S. high-yield corporate bonds with similar average maturities: 5.6 years for HYHG and 5.8 for JNK. The key difference is that HYHG shorts Treasury futures to hedge interest-rate risk, and JNK does not. JNK is cheaper at 0.40% versus 0.50%, and much larger, at about $7.3 billion against roughly $204 million. As of October 27, 2026, HYHG returned 4.8% over one year versus JNK's 1.6%. Their three-year annualized returns were close: 8.6% and 8.7%.
Is HYHG good for retirement income?
It may suit retirees who want monthly income and worry about rising rates, but it carries real credit risk. Its trailing yield was 6.75% as of October 27, 2026. Its average annual return was 6.27% over 10 years to December 31, 2025, according to the prospectus. However, it fell about 25.7% in early 2020 and took around 10 months to recover. Selling shares for income during a slump like that would lock in losses.
How does HYHG hedge interest rate risk?
HYHG pairs its junk bonds with short positions in U.S. Treasury futures, using 2-, 5- and 10-year notes. The short position is matched to the bonds' duration, which measures how sensitive they are to rate changes. When Treasury yields rise and bond prices fall, the short position gains, offsetting much of the loss. The positions reset monthly. The hedge does not protect against defaults, and it loses money when rates fall.
Can HYHG lose money?
Yes. The prospectus says plainly that you could lose money. Its worst quarter was a 14.02% loss in the first quarter of 2020, and its deepest peak-to-trough drop was 25.7%, from January to March 2020. The rate hedge does not shield the fund from fears of company defaults, which tend to rise in recessions. It also uses futures, which bring derivatives and counterparty risk.