At a glance
IGHG charges 0.3% a year, above the 0.14% average of the 7 funds most like it (the 7th cheapest of 8). It has $343.0M in assets, the 8th largest of that group; it paid 5.12% of its price in distributions over the past 12 months, monthly. Over the past year it returned +3.3% with distributions reinvested, 2nd of those 8 funds; over three years it returned +7.0% a year. At its worst it fell 24.7% in the 2020 crash (S&P 500: 33.7%) and 7.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 3 months after the lows. Its ten largest positions make up 11.7% of the fund, out of 188 in all.
The short version
ProShares Investment Grade-Interest Rate Hedged (IGHG) holds investment-grade corporate bonds and pairs them with short positions in U.S. Treasury futures. It tracks the FTSE Corporate Investment Grade (Treasury Rate-Hedged) Index. The short side aims to cancel most of the effect of rising Treasury rates, so what's left is mainly corporate credit risk. That hedge has a price: a 0.30% expense ratio, compared with a 0.14% average for similar funds.
Price history
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IGHG +3.3% 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 | |
|---|---|---|---|---|---|---|
| IGHG official prospectus, to Dec 31, 2025 | — | +5.82% | — | +5.20% | +4.71% | — |
| IGHG price data to Oct 27, 2026 | +2.8% | +3.3% | +7.0% | +5.4% | +4.5% | +3.7% |
- Over the year to Oct 27, 2026, IGHG returned +3.3%, 2nd of 8 among similar funds.
- Its 5-year annualized return was +5.4% and its 10-year +4.5%.
- In the 2020 COVID crash it fell 24.7% and regained its old high 8.4 months after the low.
- Its worst full calendar year was 2018 (-4.0%); its best was 2019 (+12.7%).
- The deepest fall in its price history was 25.2% (Jan 22, 2020 to Mar 20, 2020), recovered by Dec 1, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +2.8% | — |
| 2025 | +5.6% | +5.82% |
| 2024 | +9.2% | +9.09% |
| 2023 | +11.6% | +11.68% |
| 2022 | -0.9% | -1.24% |
| 2021 | +0.9% | +1.23% |
| 2020 | +0.6% | +0.68% |
| 2019 | +12.7% | +12.66% |
| 2018 | -4.0% | -4.33% |
| 2017 | +4.5% | +5.64% |
| 2016 | +7.9% | +7.26% |
| 2015 | -2.0% | — |
| 2014 | -2.2% | — |
| 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 20.5% over that stretch · deepest drop along the way 24.7%, back to its old high 8.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 7.4% over that stretch · deepest drop along the way 7.7%, back to its old high 3.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $3.0000 | |
| 2025 | $4.0200 | +1.5% |
| 2024 | $3.9600 | +4.5% |
| 2023 | $3.7900 | +50.4% |
| 2022 | $2.5200 | +35.5% |
| 2021 | $1.8600 | -12.3% |
| 2020 | $2.1200 | -20.9% |
| 2019 | $2.6800 | -8.8% |
| 2018 | $2.9400 | +13.3% |
| 2017 | $2.5941 | +0.9% |
| 2016 | $2.5702 | -3.7% |
| 2015 | $2.6690 | -3.8% |
| 2014 | $2.7734 |
What's inside
As of Aug 31, 2026, the fund held 188 securities; the ten largest made up 11.66% of assets.
| Holding | Weight | |
|---|---|---|
| Morgan Stanley Bonds and notes | 1.61% | |
| RTX Corp. Bonds and notes | 1.35% | |
| Apple, Inc. Bonds and notes | 1.21% | |
| Home Depot, Inc. (The) Bonds and notes | 1.11% | |
| GlaxoSmithKline Capital, Inc. Bonds and notes | 1.11% | |
| Goldman Sachs Group, Inc. (The) Bonds and notes | 1.10% | |
| Bank of America Corp. Bonds and notes | 1.06% | |
| Cisco Systems, Inc. Bonds and notes | 1.06% | |
| Oracle Corp. Bonds and notes | 1.04% | |
| Shell Finance US, Inc. Bonds and notes | 1.02% | |
| Time Warner Cable LLC Bonds and notes | 1.00% | |
| Goldman Sachs Group, Inc. (The) Bonds and notes | 0.99% | |
| JPMorgan Chase & Co. Bonds and notes | 0.99% | |
| HSBC Holdings plc Bonds and notes | 0.98% | |
| Pfizer, Inc. Bonds and notes | 0.97% |
By country
United States 69.62%United Kingdom 6.19%Spain 5.14%Canada 4.9%Japan 3.55%By issuer
Companies 95.59%The bonds mature in 13.8 years on average (weighted by size), with an average coupon of 5.42%.
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 $37.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.21%, +0.16%, +0.32%.
How it works
IGHG tracks an index built by FTSE International Limited that has two parts. The first is a long position in investment-grade corporate bonds rated at least BBB- by S&P or Baa3 by Moody's, the lowest rungs of investment grade. Bonds are weighted by market value, and no single issuer can be more than 3%. As of August 31, 2026, the fund held 188 bonds. The largest were Morgan Stanley (1.6%), RTX (1.4%) and Apple (1.2%), and the top 10 made up 11.7% of the fund. The average maturity was 13.8 years.
The second part is a short position in U.S. Treasuries, sized to match the corporate bonds' duration. Duration measures how much a bond's price moves when interest rates change. The fund gets this short exposure through futures, which are contracts to buy or sell at a set price on a future date. It uses 10-year Treasury note, Treasury Long Bond and Ultra Bond futures. When Treasury yields rise, the bonds lose value but the short positions gain. The index resets its positions each month.
The hedge does not protect against credit risk. That is the risk that companies can't pay, or that investors demand extra yield to hold corporate debt. When rates fall, the short side loses money, so the fund misses some of the gains a regular bond fund would get.
What it really costs
- IGHG charges 0.3% a year, versus an average of 0.14% for the similar funds below (7th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $31 in the first year and $381 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IGHG | $31 | $97 | $169 | $381 |
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
It pays monthly income from investment-grade corporate bonds while hedging away most of the price swings caused by changes in Treasury rates.
IGHG could add monthly corporate bond income without much sensitivity to interest rates. Its trailing 12-month yield was 5.12% as of October 27, 2026. It launched in November 2013, so it has no record from the 2008 crisis. In the 2022 rate shock it fell 7.7% and had recovered by January 2023. Its loss for calendar year 2022 was 1.24%. In the 2020 COVID crash, credit fears hit it hard. Its deepest drop was 25.2%, from January 22 to March 20, 2020, and it took about 8.4 months to recover. Its worst calendar year was 2018, at -4.33%. Someone who has to sell shares during a credit panic could lock in losses like these. On the SEC's standard $10,000 example, costs come to $31 after one year and $381 after 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income-focused investors who want monthly payouts from investment-grade corporate bonds; the trailing yield was 5.12% as of October 27, 2026.
- Investors worried about rising rates who want corporate bond exposure, with Treasury futures hedging most of the rate sensitivity of bonds averaging 13.8 years to maturity.
- Holders willing to pay 0.30% a year, more than twice the 0.14% average for similar funds, for a built-in rate hedge.
Look elsewhere if
- Investors wanting a bond fund that holds steady when stocks crash; IGHG fell 24.7% in early 2020 as credit fears spiked.
- Investors expecting interest rates to fall, since the short Treasury futures lose money then and limit the fund's gains.
- Cost-focused investors; unhedged corporate bond funds such as VCIT (0.03%) and USIG (0.04%) charge a fraction of IGHG's 0.30%.
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 |
|---|---|---|---|---|---|
| IGHG this fund | 13.8 yrs | 0.3% | $343.0M | +3.3% | +7.0% |
| LQD iShares iBoxx $ Investment Grade Corporate … | 13 yrs | 0.14% | $32.04B | -2.3% | +5.2% |
| JAAA Janus Henderson AAA CLO ETF | 11.4 yrs | 0.2% | $29.21B | +4.9% | +6.1% |
| IGEB iShares Investment Grade Systematic Bond ETF | 11.3 yrs | 0.18% | $1.49B | -1.5% | +6.7% |
| USIG iShares Broad USD Investment Grade Corporat… | 10.3 yrs | 0.04% | $17.85B | -0.9% | +5.7% |
| VCIT Vanguard Intermediate-Term Corporate Bond E… | 8.2 yrs | 0.03% | $72.04B | -0.6% | +7.1% |
| IGIB iShares 5-10 Year Investment Grade Corporat… | 8.3 yrs | 0.04% | $18.72B | -1.0% | +6.4% |
| CORP PIMCO Investment Grade Corporate Bond Index… | 9.3 yrs | 0.36% | $1.60B | -1.6% | +6.6% |
Questions investors ask
Does IGHG pay monthly dividends?
Yes. IGHG pays income monthly. Over the 12 months to October 27, 2026, it paid $3.97 per share, a trailing yield of 5.12%. The income comes from interest on its corporate bonds, which had an average coupon of 5.42% as of August 31, 2026. Payments can change from month to month as the fund's holdings and interest rates change.
What's the difference between IGHG and LQD?
The main difference is the rate hedge. The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) holds bonds with a similar average maturity but does not hedge interest rates. LQD charges 0.14%, compared with IGHG's 0.30%, and it is far larger: $32 billion against $343 million as of August 31, 2026. Over the year to late October 2026, IGHG returned 3.3% and LQD lost 2.2%. That gap reflects how each fund reacts when rates move.
How does IGHG hedge interest rate risk?
IGHG shorts U.S. Treasury futures, using 10-year note, Long Bond and Ultra Bond contracts, sized to match the duration of its corporate bonds. When Treasury yields rise, the bonds fall in price but the short futures gain, roughly offsetting each other. The index resets these positions monthly. The hedge does not cover credit risk, and the fund gives up some gains when rates fall.
Is IGHG safe in a stock market crash?
Not necessarily. The rate hedge does not protect against credit stress, which tends to show up in a crash. In the 2020 COVID sell-off, IGHG fell 24.7% from February 19 to March 20, 2020. Its worst quarter was the first quarter of 2020, when it lost 14.97%. It took until December 1, 2020, to recover. In the 2022 bear market, which was driven mainly by rising rates, its drop was smaller, at 7.7%.
What is IGHG's long-term return?
As of December 31, 2025, IGHG's average annual return was 5.82% over one year, 5.20% over five years and 4.71% over 10 years, according to its prospectus. Calendar-year results have ranged from a 4.33% loss in 2018 to a 12.66% gain in 2019. Because the fund hedges interest rates, its returns depend mostly on corporate credit conditions rather than on moves in Treasury yields.