Advocate Rising Rate Hedge ETF (RRH) is an exchange-traded fund that seeks to provide investors with a hedge against rising interest rates through a portfolio of financial derivatives and fixed-income instruments designed to profit from increases in U.S. Treasury yields. The fund employs a systematic strategy utilizing interest rate swaps, Treasury futures, and options on rate-sensitive assets; it targets durations sensitive to yield curve shifts while maintaining low correlation to traditional equity and bond markets. RRH operates primarily in the U.S. fixed-income derivatives market, serving institutional investors, hedge funds, and risk managers focused on duration and convexity protection in inflationary or tightening monetary policy environments.
Launched in 2024 and headquartered in New York, NY, under the management of Advocate Capital Management, LLC, the ETF focuses on tactical overlays for multi-asset portfolios rather than broad market exposure. Its core offerings include actively managed swap positions benchmarked against the Bloomberg U.S. Treasury Index; short positions in long-duration Treasuries via futures; and dynamic options strategies for asymmetric upside in rate hikes. The fund distributes returns through capital appreciation and does not pay regular dividends, emphasizing capital preservation during rate volatility.
In the past year, RRH expanded its strategy with the launch of an enhanced version incorporating European sovereign yield exposure via cross-currency basis swaps in Q3 2025, alongside a strategic partnership with a major prime brokerage firm to improve execution liquidity. The ETF also completed a seed funding round led by a prominent family office in early 2025, enabling a 50% increase in assets under management to over $250 million. These developments reflect Advocate Capital's shift toward global rate hedging capabilities amid persistent inflation concerns.