At a glance
HYKE charges 0.93% a year. It has $1.3M in assets; it paid 0.33% of its price in distributions over the past 12 months, annual. Over the past year it returned +11.6% with distributions reinvested (S&P 500: +11.5%).
The short version
The Vest 2 Year Interest Rate Hedge ETF (HYKE) is an actively managed fund that uses interest rate derivatives, backed by Treasury bills, to try to profit from rising 2-year interest rates. It loses when they fall, though each quarter it seeks to cap losses at 20% and gains at 5% to 35%, before fees. Net assets were only about $1.25 million as of December 31, 2025, and it charges 0.93% a year.
Price history
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HYKE +11.6% 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 | |
|---|---|---|---|---|---|---|
| HYKE official prospectus, to Dec 31, 2025 | — | -5.29% | — | — | — | +1.88% |
| HYKE price data to Oct 27, 2026 | +8.5% | +11.6% | — | — | — | +5.1% |
- Over the year to Oct 27, 2026, HYKE returned +11.6%.
- Its worst full calendar year was 2025 (-5.3%); its best was 2025 (-5.3%).
- The deepest fall in its price history was 21.6% (May 29, 2024 to Sep 24, 2024), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +8.5% | — |
| 2025 | -5.3% | -5.29% |
| 2024 | +11.7% | — |
| 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 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.4800 | 0.0% |
| 2024 | $0.4800 |
What's inside
As of Dec 31, 2025, the fund held 0 securities; the ten largest made up 0% of assets, and 55.75% sat in cash and money-market holdings.
| Holding | Weight |
|---|
By country
By asset type
What changed recently
- Over the three months to Dec 31, 2025, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.93%, -0.99%, +0.99%.
How it works
HYKE tracks no index. Its adviser actively picks derivatives (contracts whose value depends on an underlying rate) that tend to gain when the 2-year rate rises and lose when it falls. That rate reflects the cost of borrowing cash overnight against Treasury securities, compounded over two years. Tools include futures, options, interest rate swaps (two parties trading interest payments) and swaptions (options to enter a swap at a set rate). Treasury bills serve as collateral.
The fund works in calendar quarters, generally using swaptions that mature in three months. It purchases receiver swaptions, which gain when rates fall, to set a floor on losses. It also writes payer swaptions, collecting fees that offset that cost but giving up any gains above a cap. It seeks to limit quarterly losses to 20%, with gains capped typically between 5% and 35%, before fees. The floor isn't guaranteed, and investors who enter mid-quarter may see different results.
As of December 31, 2025, the fund reported cash at 56% of net assets. A payer swaption set at 2.28%, which profits from rising rates, was worth 20%; a second, set at 3.65%, was valued at zero. It is non-diversified, so it can concentrate in few positions, and is regulated as a commodity pool. Swaps trade privately, so the bank on the other side could default.
What it really costs
- HYKE charges 0.93% a year.
- Of that, 0.85% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $95 in the first year and $1,143 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HYKE | $95 | $296 | $515 | $1,143 |
In a retirement portfolio
It is a narrow, derivatives-based position on rising 2-year interest rates, with under three years of history and very small assets.
HYKE could act as a small offset to bond holdings, since it aims to gain when 2-year rates rise, which is when bond prices tend to fall. It launched on January 10, 2024, so it has no record in the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, lost 5.29%. Its deepest drop was 21.6%, from May 29 to September 24, 2024, and it had not regained that high as of October 27, 2026. Short-term rates often fall when the economy weakens, so this fund may be down just when cash is needed.
Its trailing yield was 0.33% as of October 27, 2026, paid once a year, so it offers little income. Its 0.93% expense ratio comes to $95 in year one on $10,000, per the SEC's standard example. Past results don't predict the future, and a plan needs to consider the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a small hedge against rising 2-year interest rates, which tend to push down the prices of bonds they already own.
- People comfortable with swaps and swaptions, and with a quarterly loss limit of 20% before fees that isn't guaranteed.
- Investors seeking something that has moved little with stocks; its one-year beta, a measure of market sensitivity, was 0.04 as of October 27, 2026.
Look elsewhere if
- Income seekers: the trailing yield was 0.33% as of October 27, 2026, paid once a year, against a 0.93% expense ratio.
- Investors wary of fund closures: net assets were only about $1.25 million as of December 31, 2025, very small for an ETF.
- Anyone expecting rates to fall or wanting a long record: it launched in January 2024 and hadn't recovered its 21.6% drop by October 27, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
No close alternatives found.
Questions investors ask
How does the HYKE ETF work?
HYKE, an actively managed ETF issued by Cboe, uses derivatives to try to gain when the 2-year interest rate rises; it loses when that rate falls. It holds Treasury bills as collateral and uses interest rate swaps and swaptions, which are options to enter a swap. Each calendar quarter it purchases protection that seeks to limit losses to 20%, before fees, and gives up gains above a cap, typically 5% to 35%, to help pay for it. The limits reset quarterly and aren't guaranteed.
How has HYKE performed since it launched?
Results have been mixed. HYKE launched on January 10, 2024, and returned 11.69% based on price through the end of that partial year. Its only full calendar year, 2025, lost 5.29%, and its average annual return since inception was 1.88% as of December 31, 2025, per the prospectus. Based on price, it was up 8.52% from the start of 2026 through October 27, 2026, and 11.6% over the 12 months to that date.
How much can HYKE lose?
It can lose more than 20% over time, even with its quarterly loss limit. The fund seeks to cap losses at 20% per calendar quarter before fees, but the prospectus says there's no assurance it will succeed, and losses can build across quarters. Its deepest drop was 21.6%, from May 29 to September 24, 2024, and it hadn't regained that peak as of October 27, 2026. The prospectus lists its worst quarter as a 5.91% loss in the three months ended March 31, 2025.
What is HYKE's expense ratio?
HYKE's expense ratio is 0.93% a year, including a 0.85% management fee, according to the prospectus filed January 27, 2026. In the SEC's standard example, total costs on $10,000 earning 5% a year come to $95 over one year, $296 over three, $515 over five and $1,143 over ten. The fund is also very small, with about $1.25 million in net assets as of December 31, 2025, which can mean higher trading costs and a greater chance the fund closes.
Does HYKE pay dividends?
Yes, but very little. HYKE pays distributions once a year, and its trailing 12-month payout was $0.09 per share, a yield of 0.33% as of October 27, 2026. Income isn't the point of the fund; its returns come mainly from its interest rate derivatives. The prospectus also notes that it generally redeems shares for cash, which can lead it to realize capital gains it might otherwise avoid, and those could be passed on to shareholders.