FolioBeyond Alternative Income and Interest Rate Hedge ETF

RISR

Market cap $186M

FolioBeyond Alternative Income and Interest Rate Hedge ETF offers unique negative duration exposure via AAA MBS IO strips, targeting rate-sensitive investors. RISR's price declines as rates fall, but its negative duration makes it an effective hedge for portfolios with positive duration fixed income holdings like IEI or IEF. Despite lower rates ahead, RISR remains a 'Hold' due to its hedging utility and high yield, not as a standalone investment in a falling rate environment.

NEW YORK--(BUSINESS WIRE)--The FolioBeyond Alternative Income and Interest Rate Hedge ETF (NYSE Arca: RISR) has crossed the $180 million asset threshold, placing the fund in the top 50% of fixed income ETFs by assets under management. This milestone reinforces RISR's position as a leading actively managed solution for investors seeking both income generation and interest rate risk mitigation. RISR is ranked #6 among 235 funds in Morningstar's Nontraditional Bond Funds category over the 3 years.

RISR invests in interest-only mortgage-backed securities, unique securities with negative duration. This rate sensitivity is the opposite of traditional bonds, which generally see higher prices when rates fall, and vice versa. RISR's negative duration means the fund can be used as an interest rate hedge or as a short-term trade for hawkish investors.

RISR delivered exceptional returns (+77% since 2021) with negative duration, thanks to active management and a favorable rate environment. The fund uses quantitative strategies to navigate interest rate hiking scenarios, with strong exposure to the MBS and a -5/-10 negative duration. The management was able to deliver positive alpha in 2024 and is navigating well within the macro scenario of 2025.

FolioBeyond Alternative Income and Interest Rate Hedge ETF (RISR) has a 5.6% yield from interest-only MBS and an astonishing feat: negative duration. RISR has delivered stellar returns since inception, outperforming the Nasdaq 100 due to the recent rate hike cycle. RISR is still untested in falling rates, so it is best used as a hedge or a trading instrument, not as a standalone long-term holding.

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RISR focuses on AAA-rated, interest-only mortgage-backed securities, offering a 5.6% yield. RISR's negative duration is somewhat unique and means the fund can be used as a portfolio hedge, or as a trading vehicle for hawkish traders. It has significantly outperformed since inception, almost entirely due to favorable timing.

On Thursday, FolioBeyond launched the FolioBeyond Enhanced Fixed Income Premium ETF (FIXP), the latest expansion to its ETF library.  FIXP looks to generate yield for its investors, with a secondary objective of capital appreciation.

NEW YORK, Jan. 23, 2025 (GLOBE NEWSWIRE) -- FolioBeyond is proud to announce the launch of the FolioBeyond Enhanced Fixed Income Premium ETF (FIXP), now trading on the New York Stock Exchange. Designed for fixed-income investors, FIXP offers an innovative approach combining dynamic fixed-income allocation with an option overlay strategy to enhance income potential.