Could This ETF Be the Best Way to Play Rising Interest Rates in 2026?

2026-02-02 12:50:00 ET

Much to the dismay of the White House, some corners of Wall Street, and plenty of retail investors, the Federal Reserve held interest rates unchanged this past Wednesday, dashing hopes of a January rate cut.

One meeting without a rate cut doesn't mean the central bank is suddenly turning hawkish and that monetary tightening is imminent. But for the sake of argument, let's consider the possibility that the macroeconomic environment rapidly shifts to the point that the Fed is backed into a corner and must raise rates.

There's an exchange-traded fund (ETF) for that, and it's the Fidelity Dividend ETF For Rising Rates (NYSEMKT: FDRR) . Yes, this ETF protects in the event that 10-year Treasury yields rise, but even if that doesn't happen, the fund offers utility.

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