On the 6th day of Fedmas, Janet Yellen sent to me...

Published Mon, Dec 7 20152:08 PM EST

During each of the 12 trading days before the Federal Reserve's interest rate decision on Dec. 16, CNBC Pro is highlighting a single strategy that should work if the central bank hikes rates, as many on Wall Street expect. We found these trades using Kensho, a powerful tool used by hedge funds to analyze historical market data. In the holiday spirit, we will call this series the "Twelve Days of Fedmas." Monday marked the sixth day so we've added another line, "Six ETFs-a-leveraged." On the sixth day of Fedmas, Janet Yellen sent to me: Six ETFs-a-leveraged... FIV-V-V-E GOLD-D-D-D M-A-N Sachs. Four Lincoln Nationals ... Three ETNs ... Two General Motors ... And a pair trade in Curr-en-cies! Atlanta Fed President Dennis Lockhart said Monday the economy is ready for the central bank to raise rates next week, comments that traders are taking as a clear sign it will actually do it this time. If the Fed move sparks an increase in long-term rates, there are 12 trades and more for investors, if history is any guide. CNBC Pro ran the numbers on Kensho and found that certain leveraged exchange-traded funds do perform well under a scenario of rising long-term interest rates for U.S. markets. We looked at all the one-month periods of significant moves higher in rates over the last decade. Here are the ETFs that did the best... Owning six shares of the Direxion Daily Small Cap Bull Shares (TNA), which seeks to provide three times the daily return of the Russell 2000 index, could be a strong strategy going into the new year, if history is any guide. According to Kensho, the small cap leveraged ETF rose by an average of 13 percent during that one-month period of increasing longer-term Treasury yields. And this makes sense. Shares of smaller companies should get a boost as the rate hike will signal the Fed's confidence in the domestic economy. What's more, higher rates will hit larger companies much more as they have larger debt loads. But the large caps shouldn't decline in value however. A leveraged ETF tracking double the S & P 500's daily return, the ProShares Ultra S & P 500 (SSO), jumped by an average of 7 percent during a one-month period of increasing long-term rates, according to Kensho. A couple of caveats on the above. Investors must be careful holding leveraged ETFs. They can move quickly against you if you're not watching them every minute. Also, when held over longer periods than a single day, the fund's returns don't always track double or triple the return of a security like they are supposed to. Also, on our Kensho search, we looked at periods over the last decade when longer-term rates rose. It is possible that when the Fed hikes short-term rates this time, long-term rates do not respond as fears of a weakening economy down the road top the central bank move. In that case, these trades may not follow the historical pattern. Look for the sixth day of the "Fedmas" trade Tuesday on CNBC Pro. Disclosure: NBCUniversal, parent of CNBC, is a minority investor in Kensho.

H. Armstrong Roberts | ClassicStock | Getty Images; Getty Images

In the holiday spirit, we will call this series the "Twelve Days of Fedmas." Monday marked the sixth day so we've added another line, "Six ETFs-a-leveraged."

On the sixth day of Fedmas,

Janet Yellen sent to me:

Six ETFs-a-leveraged...

FIV-V-V-E GOLD-D-D-D M-A-N Sachs.

Four Lincoln Nationals...

Three ETNs...

Two General Motors...

And a pair trade in Curr-en-cies!

Atlanta Fed President Dennis Lockhart said Monday the economy is ready for the central bank to raise rates next week, comments that traders are taking as a clear sign it will actually do it this time. If the Fed move sparks an increase in long-term rates, there are 12 trades and more for investors, if history is any guide.

CNBC Pro ran the numbers on Kensho and found that certain leveraged exchange-traded funds do perform well under a scenario of rising long-term interest rates for U.S. markets. We looked at all the one-month periods of significant moves higher in rates over the last decade. Here are the ETFs that did the best...