DFCF - RISR: This High Yield ETF Thrives In Rising Rates

2025-05-29 15:48:30 ET

Summary

• 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.
• The high expense ratio is a drawback, but may be justified by RISR's specialized strategy and performance in rising rate environments.

RISR strategy

FolioBeyond Alternative Income and Interest Rate Hedge ETF ( RISR ) is an actively managed ETF launched on 9/30/2021. RISR has a 30-day SEC yield of 6.32%, a trailing 12-month yield of 5.60% and an expense ratio of 1.23%. Distributions are paid monthly. As described by Folio Beyond , the fund primarily invests in interest-only mortgage-backed securities (“MBS IOs”) and U.S. Treasury bonds....

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