Investors prepare for possible 2026 Fed rate hikes with ETFs targeting rising rates and resilient sectors.

With the Federal Reserve signaling potential interest rate hikes in 2026, investors are seeking strategies to protect portfolios from rate volatility. ETFs like ProShares Equities for Rising Rates (EQRR) and Fidelity Dividend ETF for Rising Rates (FDRR) focus on sectors and stocks that historically perform well during rising rates, such as financials and energy. Additionally, floating-rate bonds, senior loans, and ultra-short-duration bonds offer tools to mitigate interest rate risks. Financial sector equities and value stocks are also favored for their resilience to higher borrowing costs and stable cash flows in a rising rate environment.