Global X Active Ultra-Short Term Investment Grade Bond ETF (HFR.TO)

The Global X Active Ultra-Short Term Investment Grade Bond ETF (HFR) is designed to invest in high-quality corporate debt. Its primary objective is to offer an increased yield when interest rates are on the rise, thereby cushioning its market value against the volatility often associated with interest rate fluctuations. The fund actively manages its interest rate exposure to ensure its portfolio duration consistently remains below one year. This makes HFR a valuable tool for investors aiming to reduce the overall interest rate sensitivity of their existing bond portfolios. HFR utilizes interest rate swap agreements to effectively hedge against rising interest rates. By converting fixed-rate payments into floating ones, the ETF seeks to provide capital protection during periods of increasing rates…