FolioBeyond Alternative Income and Interest Rate Hedge ETF RISR is probably on the radar for investors seeking momentum.The fund just hit a 52-week high and has risen 6.1% from its 52-week low price of $35.25 per share.
I highlight four ETFs—PFIX, RISR, SRLN, CLOZ—offering 6-7% yields and hedging against rising rates and inflation. PFIX is a tactical, volatile interest rate hedge with a 7% distribution and strong historical total returns, best used as a short-term position. RISR, SRLN, and CLOZ provide steady monthly income, lower volatility, and benefit from higher rates, with RISR and CLOZ offering alternative hedging strategies.
The FolioBeyond Alternative Income and Int Rt Hdg ETF is a high-quality, negative-duration, income-producing ETF. Its 5.8% dividend yield provides solid income to shareholders, while its negative duration could mean gains if rates continue to rise. RISR is a solid investment and should be particularly interesting to more hawkish investors, or those concerned about continued inflation.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 91 | $3,296.02 | $3,388.84 | $92.82 | 2.82% |
Jeff Ameen Spire Wealth Management | 14 | $485.66 | $518.28 | $32.62 | 6.72% |
Kimberly Cappellano Private Wealth Asset Management LLC | 146,484 | $5.31M | $5.43M | $117,407.59 | 2.21% |
Nathan C. Goodman Family Investment Center Inc. | 1.34M | $48.69M | $49.69M | $994,763.73 | 2.04% |
Scott Ungar BlackDiamond Wealth Management LLC | 22,029 | $753,930.99 | $814,191.84 | $60,260.85 | 7.99% |
| ARCA Exchange | US Country |
The fund operates as an actively managed exchange-traded fund (ETF) focused on creating an investment solution that not only aims to generate attractive current income for its investors but also to provide a hedge against the potential negative impacts of rising interest rates. In order to fulfill its investment objectives, the fund primarily commits its assets into interest-only mortgage-backed securities (MBS IOs) and U.S. Treasury bonds. While it seeks to offer financial benefits and rate protection, it is characterized as non-diversified, concentrating its investments more narrowly compared to diversified funds.
The fund invests in interest-only mortgage-backed securities, which are a type of financial asset derived from mortgage pools. MBS IOs give the holder the right to the interest payments made on the underlying mortgages. These securities are sensitive to changes in mortgage prepayment rates and can be used effectively to manage interest rate risk.
As part of its strategy to generate income and provide an interest rate hedge, the fund also allocates investments in U.S. Treasury bonds. These government securities offer a fixed interest rate and guarantee the preservation of capital, making them a stable and reliable component of the fund's investment portfolio. U.S. Treasury bonds serve as a counterbalance to the more variable returns of interest-only mortgage-backed securities and support the fund's income generation objectives.