Stan Wong ProShares Equities for Rising Rates ETF EQRR-Q HOLD Sep 08, 2022

Unique ETF. Basket of US stocks that should outperform the S&P 500 during periods of rising interest rates. Large cap names that we all know. He sees the 10-year US treasury yield surpassing 2%, maybe even 2.25%, by the end of this year. Targets sectors that have the highest correlation to US 10-year yields, and the stocks that have the best tendencies to outperform as rates rise. In 2021, it outpaced the S&P by over 7%. Valuation discount to the S&P. Ticks boxes of financials, energy, and basic materials at 75% of the portfolio.

Designed to outperform the market during rising rates. Outpaced the S&P 500 by 30% over the last 2 years. Long-term bond yields will probably pause with a deceleration. 32% in energy, a long-term secular benefit. 26% in financials, which are cheap. 19% materials, a mixed bag. If you own it, hold. Yield is 3%.

Stop loss level? Designed to outperform in rising rate environment. 56% is in US energy and financials, both of which he likes right now. Up 9% YTD relative to the S&P. He'd put a stop loss about 10-15% above the 200-day MA. From a fundamental perspective, he likes the sectors and will continue to hold.

(A Top Pick Jan 12/22, Up 1%) Designed to outperform during rising rates. That may change later this year. 56% in US energy and financials, two of his top 3 areas. Continues to like and hold.