The ProShares Equities for Rising Rates ETF, known by its ticker EQRR, has become one of the more unusual stories in the ETF market this year. The fund has gained about 36% in 2026, helped by strong energy stocks, higher oil prices and a market that has had to deal with higher interest rates.
The latest official data from ProShares show that EQRR had a 37.32% year-to-date total return at the end of August 2026. Its market-price return was slightly higher at 37.36%. The figures show just how strong the fund has been this year.
At first glance, EQRR may look like a simple bet on higher interest rates. That is not quite the full story. The fund uses a special method to select large U.S. companies whose stock prices have shown a strong historical link with moves in the 10-year U.S. Treasury yield. This gives EQRR a very different mix from a normal large-cap U.S. stock fund.
What EQRR Is Designed to Do
ProShares created EQRR for periods when interest rates move higher. The fund tracks the Nasdaq U.S. Large Cap Equities for Rising Rates Index. The index looks for companies whose share prices have shown a relatively high historical correlation with interest-rate moves.
This does not mean every stock inside EQRR rises whenever rates rise. It also does not mean the ETF must rise each time Treasury yields move higher. The strategy is based on past relationships, and those relationships can change.
That point matters because the fund’s strong 2026 return has come from several market forces at once. Higher oil prices have helped energy companies, while financial stocks and some technology names have also added to the fund’s performance.
Energy Has Become a Major Part of the Story
Energy is one of the clearest reasons behind EQRR’s strong performance this year. The fund has large positions in major oil and energy companies, and those stocks can benefit when crude prices move higher.
As of September 14, EQRR’s largest position was Marathon Petroleum at 4.15%. Valero Energy had a 3.93% weight, while ConocoPhillips had 3.43%. Chevron made up 3.30%, and Occidental Petroleum stood at 3.29%.
The fund also held Devon Energy, Diamondback Energy, EOG Resources, Halliburton and Baker Hughes among its larger positions. This gives the ETF a strong link to the energy market.
Oil has had a major role in the 2026 market story. Brent crude has moved above $100 a barrel, while WTI crude recently traded above $100 as well. Higher oil prices can support profits for many energy companies, although the effect differs from one company to another.
That makes EQRR’s 2026 rise about more than interest rates alone. Energy prices have also played a major role.
Financial Stocks Add Another Layer
Financial companies are another important part of the EQRR story. The fund owns firms such as LPL Financial, Ameriprise Financial, Raymond James Financial, MetLife, Apollo Global Management and JPMorgan Chase.
Barron’s recently reported that financial stocks make up close to 20% of the fund. That gives EQRR another link to the rate story.
Higher rates can affect banks, insurers, asset managers and other financial companies in different ways. Some firms can benefit from higher yields or stronger income from certain assets. Others can face pressure from higher borrowing costs or weaker demand.
The result is that financial stocks can react differently from energy stocks, even when both are part of the same ETF.
EQRR Is Not Just Energy and Finance
One of the most interesting parts of EQRR is its technology exposure. The fund owns companies such as Zscaler, CrowdStrike, Palo Alto Networks, Fortinet and Nvidia.
As of September 14, Zscaler had a 3.21% weight, while CrowdStrike stood at 2.98% and Palo Alto Networks at 2.72%. Nvidia had a 2.43% weight. Alphabet, Cisco and other technology names also appeared in the portfolio.
This mix shows why it can be misleading to call EQRR a pure interest-rate trade. It is a basket of companies that have shown a certain historical relationship with Treasury yields. The fund can therefore contain stocks from very different parts of the economy.
Its portfolio had 52 holdings as of August 31, according to ProShares.
Why Oil and Rates Matter Together
The 2026 market has faced an unusual combination of higher oil prices and higher Treasury yields. That has created a favorable backdrop for several parts of EQRR.
On September 15, the 10-year Treasury yield moved above 5%, while WTI crude rose to about $103.07 a barrel. Higher oil prices have also raised concern about inflation because energy costs can affect prices across the wider economy.
If inflation stays high, the Federal Reserve may face less room to cut rates and may even face pressure to raise them. That type of environment can keep attention on funds such as EQRR.
However, the relationship is not automatic. A higher oil price can help an oil producer, but it can also hurt companies that rely heavily on fuel. Higher rates can help some financial firms but place pressure on businesses with high debt.
EQRR Has Delivered a Strong Return
The numbers show how far EQRR has moved this year. ProShares reported a 37.32% YTD NAV return through August 31, 2026, compared with 27.66% for the previous six-month period. Its one-year NAV return stood at 40.67%.
The fund’s performance has also been strong over longer periods. Its three-year annualized return was 21.24%, while its five-year annualized return was 14.90%, based on ProShares data through August 31.
Past returns, however, do not tell investors what will happen next. ProShares itself notes that past performance does not guarantee future results.
The Fund Is Still Quite Small
Another detail deserves attention. EQRR is a relatively small ETF. ProShares reported $35.2 million in net assets as of August 31, 2026.
The fund has an expense ratio of 0.35%. It began on July 24, 2017, which gives it several years of market history. The ETF also pays distributions on a quarterly basis. Its 12-month yield was 1.01% as of August 31.
Its small size does not change the strategy, but it is useful for investors to know when they compare EQRR with much larger ETFs.
What Could Shape the Next Move
The next phase for EQRR may depend on several factors. Treasury yields, oil prices, inflation data, Federal Reserve policy and company profits can all affect the ETF.
If rates stay high and energy prices remain strong, the fund may continue to get support from several of its major holdings. But a fall in oil prices could reduce the benefit from its large energy exposure.
A sharp decline in Treasury yields could also change the market conditions that support the fund’s strategy. Technology stocks could bring another source of performance, but they can also face pressure when investors place a lower value on future profits during periods of high rates.
A Different Kind of Rate Trade
EQRR is interesting because it does not simply hold banks or other traditional rate-sensitive companies. Instead, it uses historical stock-price and Treasury-yield relationships to create a portfolio.
Its 36% gain in 2026 has made the fund much more visible, but the return also shows why investors should look beyond the ETF’s name. Energy, oil prices, financial stocks and technology companies have all helped shape the result.
For anyone who studies EQRR, the key point is simple: this is a fund built for a higher-rate environment, but its actual performance depends on much more than rates alone. The 2026 surge has come from a wider mix of market forces, with energy and oil prices playing a major role.
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