How Rate-Hedged Bond ETFs Became Bona Fide Retirement Strategies April 1, 2021 Rising Treasury yields often prompt advisors and investors to embrace short-term bonds and related exchange traded funds, but there are other ideas to consider, including rate-hedged bond ETFs. The Data confirm the utility of IGH and HYHG in the current environment. “If, for example, 10-year U.S. Treasury yields rose just a half of a percent (still a low rate for 10-year yields), a typical investment-grade bond portfolio with a duration of 10 could see a five percent reduction in total return. And while short-term bond funds are an option to help reduce rate risk, they cannot eliminate it,” according to ProShares research.