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.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
The FolioBeyond Alternative Income and Interest Rate Hedge ETF is an actively managed exchange-traded fund that seeks to provide diversification benefits and helps to manage risk from interest rate volatility, while generating current income under a wide range of interest rate environments. The fund charges 99 bps in fees and yields 6.64% annually.
The interest rates in the United States are expected to remain higher for longer. The Fed may hike rates further (though at a sluggish pace) to tame a sticky inflation due to a solid labor market and signs of economic resilience.
Moreover, credit rating agency Fitch cut U.S. credit rating from AAA to AA+ this week. This has raised benchmark treasury yields to levels not seen since November 2022. This is another reason for which this ETF (which is used to fight rising rates) has hit a 52-week high yesterday.
Currently, RISR might continue its strong performance given its positive weighted alpha of 11.58.
30-Day SEC Yield: 7.84%
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Performance current to the most recent month-end can be obtained by calling (866) 497-4963 or by clicking here. Short term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on returns. Returns beyond 1 year are annualized.
The 30-Day Yield represents net investment income earned by the Fund over the 30-Day period ended 7/31/2023, expressed as an annual percentage rate based on the Fund’s share price at the end of the 30-Day period. The 30-Day unsubsidized SEC Yield does not reflect any fee waivers/reimbursements/limits in effect.
Definitions:
Alpha: Alpha is a term used in investing to describe an investment strategy's ability to beat the market or appropriate benchmark. Alpha is also often referred to as excess return in relation to a benchmark after adjusting for risk.