FolioBeyond Alternative Income and Interest Rate Hedge ETF (RISR)
ARCA ARCA Primary Summary
RISR Chart
RISR: Upgrading This Negative-Duration ETF As Inflation Fears Return
FolioBeyond Alternative Income and Interest Rate Hedge ETF stands out as a unique, actively managed negative duration fund benefiting from rising rates. RISR's duration profile has been conservatively reduced from -7.9 to -2.4 years, limiting downside if rates fall while maintaining upside if rates rise. The current macro backdrop—persistent inflation, geopolitical tensions, and market-implied rate hikes—strengthens the case for RISR as a portfolio hedge.
RISR: The Best Inflation-Hedge ETF, But Not The Right Time
The FolioBeyond Alternative Income and Interest Rate Hedge ETF delivers a 6% yield and offers protection against inflation via MBS IOs. RISR surged in rising rates, outperforming both bond and equity benchmarks since inception. The ETF is largely insensitive to non-rate economic factors, distinguishing it as an all-weather inflation hedge, but remains exposed to MBS market risk.
RISR: Will Be Negatively Impacted By Lower Rates
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.
FolioBeyond Alternative Income and Interest Rate Hedge ETF Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 100 | $3,622 | $3,643 | $21 | 0.58% |
 Jeff Ameen Spire Wealth Management | 14 | $485.66 | $510.02 | $24.36 | 5.02% |
 Keith Dubauskas One Plus One Wealth Management LLC | 27,930 | $1.01M | $1.02M | $10,054.8 | 1% |
 Kimberly Cappellano Private Wealth Asset Management LLC | 146,722 | $5.32M | $5.35M | $27,348.49 | 0.51% |
| NCG Nathan C. Goodman Family Investment Center Inc. | 1.2M | $43.44M | $43.7M | $265,118.37 | 0.61% |
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FolioBeyond Alternative Income and Interest Rate Hedge ETF Profile
| ARCA Exchange | US Country |
Overview
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.
Products and Services
- Interest-Only Mortgage-Backed Securities (MBS IOs)
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.
- U.S. Treasury Bonds
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.
