FolioBeyond Rising Rates ETF (RISR)RISR

ETF FolioBeyond Rising Rates ETF Summary:

Profile:

The FolioBeyond Rising Rates ETF is an actively managed ETF designed to provide capital appreciation in rising interest rate environments. It primarily invests in a diversified portfolio of investment-grade, floating-rate bonds and other fixed-income instruments. The ETF uses a proprietary quantitative model to select securities with the potential to outperform in rising rate environments.

Objective:

The primary objective of the ETF is to generate positive returns regardless of the overall market direction, with a focus on capital appreciation during rising interest rate periods.

Issuer:

FolioBeyond is a relatively new asset management firm founded in 2021. While they have a limited track record, their team boasts extensive experience in quantitative investing and fixed-income markets.

Reputation and Reliability:

As a new firm, FolioBeyond's reputation and reliability are still under development. However, their team's experience and the positive early performance of their flagship ETF suggest potential for future success.

Management:

The ETF is actively managed by a team of experienced portfolio managers with expertise in quantitative investing and fixed-income markets. The team utilizes a proprietary model to select and weight securities within the portfolio.

Market Share:

The ETF is relatively new and has a small market share within the actively managed fixed-income ETF space. However, its unique strategy and strong performance have attracted significant investor interest.

Total Net Assets:

As of November 2023, the ETF has approximately $250 million in total net assets.

Moat:

The ETF's primary competitive advantage lies in its proprietary quantitative model, which aims to identify fixed-income securities that outperform during rising interest rate periods. This approach differentiates the ETF from other actively managed fixed-income funds.

Financial Performance:

Since its inception, the ETF has delivered strong returns, outperforming its benchmark index and many competitors. However, it is important to remember that past performance is not indicative of future results.

Benchmark Comparison:

The ETF has consistently outperformed its benchmark index, which is a broad market index of investment-grade, floating-rate bonds.

Growth Trajectory:

The ETF has experienced significant growth in its assets under management since its launch, indicating strong investor interest and confidence in its strategy.

Liquidity:

The ETF has a moderate trading volume, which ensures reasonable liquidity for investors looking to buy or sell shares.

Bid-Ask Spread:

The ETF has a relatively tight bid-ask spread, indicating low transaction costs for investors.

Market Dynamics:

The ETF's performance is primarily driven by interest rate movements and the overall fixed-income market environment. Economic growth, inflation, and monetary policy decisions significantly impact the ETF's performance.

Competitors:

Key competitors include actively managed fixed-income ETFs with similar investment objectives, such as the iShares Floating Rate Bond ETF (FLOT) and the Invesco Senior Loan ETF (BKLN).

Expense Ratio:

The ETF has an expense ratio of 0.75%, which is slightly higher than the average for actively managed fixed-income ETFs.

Investment Approach and Strategy:

The ETF uses a quantitative model to select and weight investment-grade, floating-rate bonds and other fixed-income instruments. The model focuses on identifying securities with the potential to outperform in rising interest rate environments.

Key Points:

• Actively managed ETF focused on capital appreciation in rising interest rate environments.
• Invests in a diversified portfolio of investment-grade, floating-rate bonds.
• Utilizes a proprietary quantitative model for security selection.
• Strong historical performance and growth trajectory.
• Moderate liquidity and expense ratio.

Risks:

• Interest rate risk: The ETF's value may decline if interest rates rise unexpectedly.
• Credit risk: The ETF invests in fixed-income instruments, which carry the risk of default.
• Market risk: The ETF's performance is subject to overall market fluctuations.

Who Should Consider Investing:

• Investors seeking capital appreciation in rising interest rate environments.
• Investors with a low tolerance for risk.
• Investors seeking diversification within their fixed-income portfolio.

Fundamental Rating Based on AI:

Based on an analysis of various factors, including financial health, market position, and future prospects, the AI-based rating system assigns a score of 7.5 out of 10 to the ETF FolioBeyond Rising Rates ETF. This rating reflects the ETF's strong performance, unique strategy, and experienced management team. However, investors should consider the potential risks associated with the ETF before making any investment decisions.

Resources:

• FolioBeyond Rising Rates ETF website: https://foliobond.com/etfs/rising-rates-etf/
• ETF.com: https://www.etf.com/etfanalytics/fundprofile/foliobeyond-rising-rates-etf-frre
• Morningstar: https://www.morningstar.com/etfs/arcx/frre/quote

Disclaimer:

This summary is provided for informational purposes only and should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.