Deutsche Bank has come out with three new bond ETFs that look to capitalize on the increasingly popular ETF bond market. The Deutsche X-trackers Investment Grade Bond — Interest Rate Hedged ETF (NYSE: IGIH), the Deutsche X-trackers High Yield Corporate Bond — Interest Rate Hedged ETF (NYSE: HYIH) and the Deutsche X-trackers Emerging Markets Bond Interest Rate Hedged ETF (NYSE: EMIH) all began trading on March 3.

The three ETFs provide exposure to the fixed-income market; however, the major difference is that they implement a hedging strategy through the shorting of U.S. Treasury futures in order to mitigate interest-rate risk. The risk that bond prices may fall with rising rates is a concern for most investors. The three new Deutsche Bank ETFs attempt to decrease that sensitivity through hedging and provide similar results after the Federal Reserve starts to hike interest rates.

Deutsche X-trackers Investment Grade Bond — Interest Rate Hedged ETF

IGIH seeks income through exposure to investment-grade corporate bonds across eight countries, with the Unites States at 75 percent and the United Kingdom at 9 percent making up the majority of the portfolio.

The ETF is made up of 85 positions, including issues from:

IGIH opened at $25.18. The ETF has an expense ratio of 0.25 percent.

Deutsche X-trackers High Yield Corporate Bond — Interest Rate Hedged ETF

HYIH provide exposure to the high-yield bond market while minimizing interest rate risk. HYIH is made up of 67 total securities across four countries, with the United States making up the majority of the allocation at 93 percent.

The ETF has issues from companies such as:

HYIH opened at $25.04. The ETF has an expense ratio of 0.45 percent.

Deutsche X-trackers Emerging Markets Bond Interest Rate Hedged ETF

EMIH provides exposure to 50 emerging-market debt issues across 29 countries, while decreasing the interest rate risk with hedging.

The top weighted countries are:

The strategy to hedge interest rates has become more popular for both large and small investors, as it is inevitable the Federal Reserve will begin raising interest rates in the foreseeable future. With the Fed funds rate at the lowest level ever, there is only one way for the Fed to move in the coming months and years.