Rising Rates ETF “RISR” Unveiled by FolioBeyond and Tidal ETF Services
NEW YORK, NY – October 1, 2021 - FolioBeyond, in collaboration with Tidal ETF Services, announces the launch of its Rising Rates ETF (ticker: RISR), designed to profit from rising interest rates while producing attractive returns in a stable rate environment. Both institutions and retail investors can utilize RISR as an unique hedge against rising interest rates in what is a potentially increasing inflationary economic environment that ultimately must be dealt with by every investor.
“The global pandemic has extended a long-term macro environment where interest rates are extremely low and appear asymmetrically skewed toward higher rates in the future,” said Yung Lim, CEO of FolioBeyond. “Most rising rate protection strategies are expensive and exhibit negative carry. RISR employs a positive carry strategy that benefits from secularly higher interest rates and could attract significant interest from a broad range of institutions and retail investors.” RISR is uniquely designed to have these features and offers a much-needed risk profile not currently available in the ETF market.
“Investors including RIAs, endowments, insurance companies, family offices, asset managers, mortgage originators, pension funds, and individuals will be able to utilize this ETF,” said Dean Smith, Chief Strategist, and portfolio manager for RISR.
“It has been our honor to partner with the team at FolioBeyond on this timely, relevant strategy,” said Eric Falkeis, CEO of Tidal ETF Services. “One of our main objectives as a multi-manager ETF platform is to source, structure and launch products we believe in and that can help enhance our portfolio. We believe RISR fits the bill.”
Maintaining a target of approximately negative 10 years in duration, RISR can also be implemented in FolioBeyond’s multi-factor optimization model, which provides overall guidance on asset allocation across 24 fixed income sub-sectors.
About FolioBeyond
FolioBeyond is an asset management firm that utilizes advanced algorithms as well as AI and machine learning tools designed to build diversified portfolios, manage risk, deliver optimal returns, and provide customized asset management solutions for both fixed income and equity portfolios.
About Tidal ETF Services
Formed by ETF industry pioneers and thought leaders, Tidal sets out to disrupt the way ETFs have historically been developed, launched, marketed and sold. With a transparent, partnership approach, Tidal offers a comprehensive suite of services, proprietary tools, and methodologies designed to bring lasting ideas to market. As advocates for ETF innovation, Tidal helps RIAs, institutions and investment firms launch, manage and grow innovative ETFs that clients demand. For more information, visit tidaletfservices.com.
Media Contact
George Lucaci
Global Head of Distribution
glucaci@foliobeyond.com
908.723.3372
DISCLOSURES
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (866) 497-4963 or visit our website at etfs.foliobeyond.com. Read the prospectus or summary prospectus carefully before investing.
Investments involve risk. Principal loss is possible. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value. The fund is new and has a limited operating history to judge.
Fund Risks - The value of MBS IOs is more volatile than other types of mortgage-related securities. They are very sensitive not only to declining interest rates, but also to the rate of prepayments. MBS IOs involve the risk that borrowers may default on their mortgage obligations or the guarantees underlying the mortgage-backed securities will default or otherwise fail and that, during periods of falling interest rates, mortgage-backed securities will be called or prepaid, which may result in the Fund having to reinvest proceeds in other investments at a lower interest rate. The Fund’s derivative investments have risks, including the imperfect correlation between the value of such instruments and the underlying assets or index; the loss of principal, including the potential loss of amounts greater than the initial amount invested in the derivative instrument. The value of the Fund’s investments in fixed income securities (not including MBS IOs) will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities owned indirectly by the Fund.
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