PROTECTING YOUR PORTFOLIO IN A WORLD OF RISING INTEREST RATES
NEW YORK, NY – November 7, 2021 - FolioBeyond believes interest rates are going higher, and that many of the strategies investors are using may not perform as expected. We believe it is possible to protect against high rates, or even to profit from a bear market, without the drag of negative current income. Paying out option premiums, and covering the cost of holding short positions can significantly erode your returns—even if you make the right macro call.
In this discussion, George Lucaci, FolioBeyond’s Head of Global Distribution, and Dean Smith, Chief Strategist, take a long-term view of prior interest rates bear markets, and explain why it really “isn’t different this time.” It’s been a long time since rates have been at historic norms, and with inflation seemingly gaining traction, it’s highly likely rates will follow.
We will discuss why we believe our strategy can work for investors, hedgers and traders.
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.
Distributed by Foreside Fund Services, LLC.
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