Interest Rate ETF Diversifies Trading Portfolio at Poignant Time


Electronic trading has never been so advanced. Recently, a wave of demand for diverse instruments has emerged among many traders, and in keeping with such a demand, FXOpen has added 19 new exchange traded funds (ETFs), which are tradable on the TickTrader platform as CFDs on an over-the-counter basis.

One of the 19 ETFs which have been launched by FXOpen is the Global X Interest Rate Hedge ETF, under the ticker symbol RATE.

This ETF is traded on the New York Stock Exchange (NYSE) via the NYSE's Arca system, which is the venue's electronic communication network (ECN) that is used for matching orders as opposed to the NYSE's physical and electronic stock exchange on which specific stocks of companies are traded.

The Global X Interest Rate Hedge ETF is an actively managed exchange-traded fund crafted to hedge against rising long-term interest rates. There has been a degree of volatility in the Global X Interest Rate Hedge ETF over recent weeks; therefore, its debut onto the market on the TickTrader platform is poignant.

Over the course of the past 30 days, the price of the Global X Interest Rate Hedge ETF is 17.8% down, having declined rapidly in value during the early part of December. The ETF is now trading at $24.25 at FXOpen, which is where it concluded its movements at close of business on Friday last week. However, as it’s traded as a CFD, traders can take advantage of both rising and falling prices.

This ETF arrived on the market during a period of much speculation about a potential economic slump in the United States. The US Federal Reserve's proactive approach to raising interest rates to counter inflation raises concerns about a potential economic growth slowdown.

Of course, this has been a subject that had been mooted two years ago following rigorous lockdowns, but rather surprisingly, such a recession never emerged. Here we are now, at almost the end of 2023, and the US dollar and the US economy have continued to be extremely buoyant despite further alarming occurrences such as bank collapses earlier this year, involvement in geopolitical discourse, and rising interest rates despite inflation being well under control.

Therefore, it is an interesting time to have access to this ETF, as diversification of instruments is a dominant theme of recent times in the capital markets economy.

Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.