Interest rates are on the rise, spooking investors who fear the trend will make the economy sluggish and increase costs for companies. But several exchange-traded funds thrive when interest rates rise, giving investors an option in this tougher market environment, if history is any indication.
CNBC used analytics tool Kensho to determine the best-performing ETFs when the 10-year Treasury note yield rises 25 basis points or more over a span of 30 days. There have been 18 instances of such a rate move happening since 2008. Last week alone, the 10-year yield rose about 18 basis points to above 3.2 percent.
Shares in the VanEck Vectors Oil Services ETF saw a 6.5 percent boost over the month when rates jumped, while shares of the United States Oil Fund ETF ran up 4.5 percent, according to Kensho. The SPDR S&P Regional Banking ETF is also a top-performer, surging 4.9 percent.