FolioBeyond Alt Inc and Int Rt Hdg ETF's Average Process Pillar and People Pillar ratings result in a Morningstar Medalist Rating of Neutral. The strategy charges fees in line with its similarly distributed peers, priced within the middle quintile.  

 The strategy merits an Average Process Pillar. The management team invests alongside the strategy's shareholders, which helps it earn an Average People Pillar rating. The strategy's parent organization doesn't stand out, earning the firm an Average Parent Pillar rating. It has displayed a handful of investor-friendly attributes including continuity among portfolio managers and overall affordable fees.

Analyst Rating

Morningstar's style-agnostic investment process evaluation looks for strategies that should be able to outperform their Morningstar Category index on a risk-adjusted basis over time. FolioBeyond Alt Inc and Int Rt Hdg ETF earns an Average Process Pillar rating.    The leading factor in the rating is the firm's five-year retention rate of 100% over the period. The size of the portfolio management team also bolsters the rating. With four portfolio managers, the fund is reasonably well-resourced. Lastly, the process is limited by being an actively managed strategy. Historical data, like Morningstar's Active/Passive Barometer, finds that actively managed funds have generally underperformed their passive counterparts, especially over longer time horizons.

 The investment strategy as stated in the fund's prospectus is as follows: 


The investment seeks to provide current income and protect against rising interest rates.  The fund is an actively-managed exchange-traded fund (“ETF”) that seeks to generate attractive current income while providing protection against rising interest rates (i.e. and an interest rate hedge). The fund invests primarily in interest-only mortgage-backed securities (“MBS IOs”) and U.S. Treasury bonds. The fund is non-diversified.

 This strategy's 12-month yield is 7.5%, higher than its average peer's 4.9%. It also has a 6.4% 30-day SEC yield (a standardized, point-in-time estimate of the fund’s future income return). While a higher yield may deliver more income, it also tends to indicate higher credit risk.

Average

Process

FolioBeyond Alt Inc and Int Rt Hdg ETF earns an Average People Pillar rating. The most significant contributor to the rating is the firm's five-year retention rate of 100%. The rating is also improved because a manager has at least $1 million invested in the strategy. Lastly, the rating is limited by the combined average five-year excess return of each manager, which suggests that the funds they manage have trailed their respective category average.


The team is backed by Yung Lim, the longest-tenured manager on the strategy, who brings 21 years of listed portfolio management experience.  Yung Lim is supported by an experienced team, being able to draw on three additional listed managers, who average 12 years of listed portfolio management experience.

People

In a competitive industry, FolioBeyond doesn't differentiate itself enough, leading to an Average Parent Pillar rating. Portfolio management turnover has been minimal at the firm since the firm's inception. Long-term stability indicates a strong investment culture. The firm tends to offer open-end and exchange-traded products at lower costs, a strength of the firm. On average, expenses for the firm's funds land in the second-cheapest quintile of category peers. A notable weakness of FolioBeyond is the inexperience of its longest-tenured managers compared with other asset managers. Managing capital through a full market cycle is a challenging prospect for seasoned managers, but with only two years of average tenure across their management team, there is cause for concern.

Parent

FolioBeyond Rising Rates ETF

RISR seeks to provide income and protect against rising interest rates through exposure to interest-only MBS and US Treasury bonds. The fund is actively managed.

For investors seeking momentum, FolioBeyond Alternative Income and Interest Rate Hedge ETF RISR is probably on radar. The fund just hit a 52-week high and is up 13.7% from its 52-week low price of $30.42/share.

Rising Rate ETF (RISR) Hits New 52-Week High

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U.S. inflation jumped in March, surpassing expectations primarily due to higher petrol and shelter costs, dashing hopes of a June interest rate cut by the Fed.

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Wall Street delivered a decent performance in March. With rates rising to start April, let's look at the key ETF stories of March that may hit headlines in April too.

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Traders have dialed back their expectations for immediate Fed rate cuts, now viewing them as less likely in the near term. Investors can navigate this edgy investing backdrop with these ETFs.

Play New Interest Rate Realities With These ETFs

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The bets over imminent Fed rate cuts weakened on central banks' cues. These ETFs that offer protection against rising rates are at a 52-week high currently.

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RISR invests in traditional mortgage-backed securities and interest-only MBS, offering yields in the 6.0% - 8.0% range. The fund has a negative duration, so could outperform if rates remain higher for longer, or be used as a portfolio hedge. An overview of the fund follows.

RISR: Alternative Income ETF, Strong 6.8% Yield, Very Low Credit And Rate Risk

For investors seeking momentum, Foliobeyond Rising Rates ETF RISR is probably on the radar. The fund just hit a 52-week high and is up 16.33% from its 52-week low price of $29.64/share.

Mortgage-Backed Security ETF (RISR) Hits New 52-Week High

For investors seeking momentum, FolioBeyond Alternative Income and Interest Rate Hedge ETF RISR is probably on radar. The fund just hit a 52-week high and is up 13.1% from its 52-week low price of $29.64/share.

Mortgage-Backed ETF (RISR) Hits New 52-Week High

FolioBeyond Alternative Income and Interest Rate Hedge ETF provides diversification benefits to fixed income portfolios by investing in interest-only mortgage-backed securities and U.S. treasury bonds. RISR combines negative duration MBS IO strips with long treasury bonds to create a portfolio with a negative target duration. In the current rising long-term interest rate environment, RISR is expected to benefit from slowing prepayments and deliver positive returns to investors.

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Federal Reserve Chair Jerome Powell emphasized the need for continued vigilance in the battle against inflation in a meeting in Jackson Hole.

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During the July Fed meeting, a prevailing sentiment among the majority of Fed members centered on the presence of "significant upside risks" to inflation. This means more rate hikes could be in the cards.

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For investors seeking momentum, FolioBeyond Alternative Income And Interest Rate Hedge ETF RISR is probably on radar. The fund just hit a 52-week high and is up 15.7% from its 52-week low price of $29.00/share.

Rising Rates ETF (RISR) Hits New 52-Week High

The FolioBeyond Alternative Income and Interest Rate Hedge ETF (RISR) focuses on interest-only mortgage-backed securities (MBS IOs) and US Treasury bonds, with an active management strategy. RISR has performed well against relevant equity and bond indices since its inception in 2021, but reports a high volatility level and has a high expense ratio of 1%. Despite its potential, the fund's outlook is uncertain due to the volatility of MBS IOs and the broader agency MBS market, leading me to rate RISR a Hold.

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FolioBeyond Rising Rates ETF is a fixed income exchange traded fund. The vehicle is a fairly new addition to the ETF universe, having launched only in 2021 and having only $56 million in assets under management.

RISR: Compelling 6.8% Yield From AAA Assets With Negative Duration

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News for FolioBeyond Rising Rates ETF ETF (RISR)