RISR Celebrates its 1-year anniversary ranked by Morningstar in the Top 1% by performance for Non-Traditional Bond Funds
Foliobeyond’s rising rates ETF (NYSE:RISR), launched in collaboration with Tidal ETF Services, celebrated the one year anniversary of its market debut on October 1, 2022. Over the course of the previous year, RISR has returned 29.26% on a market value basis (as of September 30, 2022), provided portfolio diversification, high current income (RISR’s most recent 30 Day SEC yield is 6.77% as of September 30, 2022), all with a good risk/return profile.
As of September 30, 2022 Morningstar has ranked RISR in the top 1% by performance among 336 Non-Traditional Bond Funds over a 1 year period.
(The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the most recent month-end performance, please call (866) 497-4963 or visit the Fund’s website at https://www.etfs.foliobeyond.com/risr)
FolioBeyond’s CEO Yung Lim said, “We are delighted with the reception RISR has had with investors. There aren’t many other products in the market that allow ordinary investors, advisors and small- to medium-sized institutions to hedge against rising interest rates cheaply and efficiently, and to manage overall duration risk in their portfolios. In the past this kind of risk management tool would only be available to hedge funds and other big institutions. RISR can make these benefits available to ETF investors in a way that didn’t exist before we created it.”
FolioBeyond’s chief Strategist and RISR Portfolio Manager Dean Smith said, “We designed RISR to fill a need in the marketplace that other liquid, exchange-traded products just don’t satisfy. We saw serious shortcomings in products like TIPs and floating rate funds, that people may try to use in volatile markets like we see today. RISR’s strong performance speaks for itself, but it’s important for investors and advisors to know that we do this without leverage and without using illiquid and opaque derivatives. And we do it while also producing a high rate of current income. We see continued volatility in the world and that means continued volatility in markets. RISR can help manage those risks.”
RISR delivers an institutional grade strategy in an ETF format, allowing investors and their advisors to manage interest rate risk through the use of liquid Mortgage-Backed Interest Only Securities (“MBS IOs”) issued by government sponsored entities including Fannie Mae, Freddie Mac and Ginnie Mae.
RISR also has a NAIC rating designation of 1.B, making it a suitable investment for insurance companies needing to fine tune their portfolios.
RISR is meant to be a core holding for client portfolios due to its negative correlation with the S&P 500 Index (-0.07 as of September 30, 2022) and the Bloomberg Bond AGG Index (-0.48 as of September 30, 2022
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 https://www.etfs.foliobeyond.com/risr. Read the prospectus or summary prospectus carefully before investing
For more information, please visit our website.
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
Preliminary NAIC Designations are the intellectual property of the National Association of Insurance Commissioners (NAIC) and are redistributed here under License. A Preliminary NAIC Designation is an opinion of the NAIC Securities Valuation Office (SVO) of the probable credit quality designation that would be assigned by the SVO to an investment if purchased by an insurance company and reported to the SVO. A Preliminary NAIC Designation is only one of the regulatory factors considered by the SVO as part of its analysis of probable regulatory treatment under the Regulatory Treatment Analysis Service (RTAS). A full discussion of such other regulatory factors is set forth in the RTAS Letter provided to Tidal Financial Services. A Preliminary NAIC Designation cannot be used to report the Fund to state insurance regulators. However, the purchasing insurance company may obtain an NAIC Designation for the Fund by filing the security and final documents for the Fund with the SVO. The indication of probable regulatory treatment indicated by a Preliminary NAIC Designation is not a recommendation to purchase the Fund and is not intended to convey approval or endorsement of the Fund Sponsor or the Fund by the NAIC.
Fund Risks – 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 limited operating history to judge. The fund intends to pay out dividends and interest income, if any, monthly. There is no guarantee these distributions will be made. 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.
Definitions
Bloomberg Barclays US Aggregate Bond Index: A broad-based benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency).
S&P 500 : The S&P 500 Index is the Standard & Poor’s composite index of 500 stocks, a widely recognized, unmanaged index of common stock prices.
Duration : Duration can measure how long it takes, in years, for an investor to be repaid a bond’s price by the bond’s total cash flows. Duration can also measure the sensitivity of a bond’s or fixed income portfolio’s price to changes in interest rates.
Negative Duration: A situation in which the price of a bond or other debt security moves in the same direction of interest rates. That is, negative duration occurs when the bond prices go up along with interest rates and vice versa.
Morningstar rankings represent a fund's total return percentile rank relative to all funds in the same Morningstar category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. It is based on Morningstar total return, which includes both income and capital gains or loses and is not adjusted for sales charges or redemption fees. Past performance does not guarantee future results.
©2022 Morningstar, Inc. All Rights Reserved. The information herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.”
Distributed by Foreside Fund Services, LLC.
Copyright © 2022 FolioBeyond, LLC. All rights reserved.