ProShares filed paperwork with the SEC to be allowed to add a fixed income ETF,  reports Index Universe.

ProShares High Yield-Interest Rate Hedged ETF will be the company's third junk bond fund. According to Index Universe, the filings "amount to a sign fund sponsors want to address anxiety that already-paltry bond yields could morph into a disastrous rout if bond investors have to ride out a selloff as interest rates head higher going forward."

The company said in a statement: "By taking such short positions, the Index is designed to mitigate any losses the high yield bonds would otherwise experience in a generally rising Treasury interest rate environment (and conversely, will limit any gains the high yield bonds would experience in a falling Treasury interest rate environment)."

ProShares manages roughly $22 billion in assets.  

Edited by: HFD


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