The Fed Just Raised Interest Rates: These 2 ETFs Could Be the Smartest Buys Right Now

The Federal Reserve's September rate hike and expected October increase have flipped the script on earlier cut predictions, creating a runway for two rate-sensitive ETFs.

ProShares Equities for Rising Rates ETF (EQRR) has returned 31% year-to-date, tracking stocks with high correlation to Treasury yields. The fund is designed to capitalize on upward pressure in rates, making it a direct play on the Fed's hawkish pivot.

iShares Core High Dividend ETF (HDV) has posted a 16% year-to-date gain, focusing on high-quality dividend stocks. The fund's strategy targets companies with sustainable payouts—historically resilient when rates climb and growth stocks face compression.

Both ETFs position traders to ride the transition from a rate-cut narrative to a higher-for-longer regime. EQRR offers pure rate exposure through yield-correlated equities, while HDV provides income stability through dividend quality screens.