PFIX: A Great ETF To Hedge One's Bond Portfolio

Mar. 06, 2025 5:35 PM ETSimplify Interest Rate Hedge ETF (PFIX)TLT, PFIX1 Comment
Max Molter
137 Followers
(6min)

Summary

  • The Simplify Interest Rate Hedge ETF offers a bond portfolio hedged against interest rate hikes, mainly investing in treasury bills and interest rate derivatives.
  • PFIX has high volatility but impressive returns during rising interest rates, making it a strong bet on increasing rates rather than just a hedge.
  • Combining PFIX with long-term bonds can balance risk and returns.

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Introduction

Bonds have always been an asset class of great interest for investors to diversify their portfolios. One big problem that bonds always present, however, is that they fall together with stocks in phases of rising interest rates, as has been seen

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