ProShares Equities for Rising Rates ETF Hits All-Time High
0h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
etfinterest-rates
Fazen Markets Editorial Desk
Collective editorial team · methodology
Trades XAUUSD 24/5 on autopilot. Verified Myfxbook performance. Free forever.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The majority of retail investor accounts lose money when trading CFDs. Vortex HFT is informational software — not investment advice. Past performance does not guarantee future results.
The ProShares Equities for Rising Rates ETF (ticker: EQRR) reached a new all-time high on 20 May 2026. The exchange-traded fund closed at $78.92, marking a 3.4% gain for the week. This milestone was announced by Seeking Alpha amidst a backdrop of persistent inflation data and shifting Federal Reserve expectations. The fund's strategy is explicitly designed to outperform during periods of rising interest rates.
The last significant peak for EQRR occurred on 18 October 2023, when it traded at $74.50. That period coincided with the U.S. 10-year Treasury yield briefly touching 5.0%. The current macro environment is defined by the 10-year yield holding firm at 4.52% and market expectations pushing the timing of the first Fed cut into late 2026.
Recent Consumer Price Index (CPI) data for April 2026 showed core inflation running at an annualized pace of 3.1%. This figure remains stubbornly above the Federal Reserve's 2% target. The trigger for EQRR's latest surge was the stronger-than-expected U.S. retail sales report released on 15 May 2026, which indicated resilient consumer demand.
This economic strength has forced a repricing of Fed policy across interest rate futures markets. The CME FedWatch Tool now shows a 92% probability that the Federal Open Market Committee holds rates steady at its June 2026 meeting. This shift in expectations directly benefits the sectors weighted within the EQRR portfolio.
EQRR's net asset value reached $78.92 at the close on 20 May 2026. The fund has accumulated $1.2 billion in assets under management. Its year-to-date performance stands at +18.7%, significantly outpacing the S&P 500's gain of +8.2% over the same period.
EQRR's daily trading volume has surged to 425,000 shares, well above its 90-day average of 250,000 shares. The fund's expense ratio is 0.35%. Its current price represents a 22.5% gain from its 52-week low of $64.40, which was recorded on 7 January 2026.
| Metric | EQRR | S&P 500 |
|---|---|---|
| YTD Return | +18.7% | +8.2% |
| 1-Year Return | +20.1% | +12.5% |
| Dividend Yield | 2.1% | 1.5% |
The fund's outperformance is concentrated in its top holdings. Financials constitute 40% of the portfolio, while energy and materials sectors account for 25% and 15% respectively. This allocation contrasts sharply with broad market indices that carry heavier technology weightings.
EQRR's structure directly benefits large money center banks and insurance companies. JPMorgan Chase and Bank of America, which are top holdings, typically see net interest margin expansion as rates rise. These institutions could see earnings revisions 5-7% higher than current analyst estimates if the yield curve continues to steepen.
The energy sector, another key component, gains from inflationary pressures that support higher commodity prices. Exxon Mobil and Chevron have outperformed the broader market by 400 basis points this month. Industrial and materials companies like Caterpillar also benefit from pricing power in a strong economic environment.
A primary risk to this thesis is an unexpected economic slowdown that would force the Fed into rapid cuts. Such a scenario would disproportionately hurt the financial sector holdings. Another limitation is the fund's concentrated nature, which increases volatility compared to a broad market ETF.
Positioning data shows institutional inflows of $280 million into EQRR over the past month. This activity suggests professional investors are hedging against or outright betting on a prolonged period of elevated rates. Short interest in long-duration growth stocks has simultaneously increased by 15%.
The next major catalyst for EQRR will be the Personal Consumption Expenditures (PCE) report due on 30 May 2026. This is the Federal Reserve's preferred inflation gauge. A print above the 2.8% consensus estimate would likely provide further momentum for the fund.
The Federal Open Market Committee meeting on 17 June 2026 will be critical. Markets will scrutinize the updated dot plot for any signs of 2026 rate cuts being pushed into 2027. The 10-year Treasury yield breaking above the 4.60% resistance level would be a strong technical confirmationsignal for EQRR's trend.
Second-quarter earnings season begins in mid-July 2026. Guidance from bank CEOs regarding net interest income will be particularly impactful. Key support for EQRR sits at its 50-day moving average of $75.50, while resistance may emerge near the psychological $80.00 level.
The ProShares Equities for Rising Rates ETF is a rules-based fund that selects U.S. stocks expected to outperform during periods of rising interest rates. It tracks the FTSE Rising Rates Index, which overweight sectors like financials, energy, and materials while underweighting rate-sensitive sectors like utilities and real estate. The fund rebalances quarterly and has been trading since September 2015.
EQRR differs significantly from traditional rate-hedge instruments like floating rate bond ETFs or inverse Treasury funds. It provides equity exposure while hedging rate risk through sector selection, not derivatives. This makes it more tax-efficient than funds using swaps. Its 0.35% expense ratio is lower than the 0.50% average for actively managed rate-hedge strategies.
Strong performance from EQRR typically signals market expectations for sustained economic growth with accompanying inflationary pressures. It suggests investors anticipate the Federal Reserve will maintain restrictive monetary policy. Historically, extended periods of EQRR outperformance have correlated with above-trend GDP growth and a steepening yield curve.
EQRR's record high reflects a market pricing in no Fed cuts for 2026.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
Vortex HFT is our free MT4/MT5 Expert Advisor. Verified Myfxbook performance. No subscription. No fees. Trades 24/5.
Position yourself for the macro moves discussed above
Start TradingSponsored
Open a demo account in 30 seconds. No deposit required.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.