NEW YORK, June 20, 2023 (GLOBE NEWSWIRE) -- Folio Beyond is pleased to announce that effective on or about June 26, 2023, the name of their flagship FolioBeyond Rising Rates ETF will be changed to the FolioBeyond Alternative Income and Interest Rate Hedge ETF. The Fund will continue to trade under the existing ticker “RISR.”
RISR invests principally in government agency interest-only mortgage-backed securities (MBS IOs). MBS IOs receive only the interest component from the mortgages underlying the agency securities. This means they receive abundant current income, but also tend to move in price in the opposite direction from traditional fixed income securities like government or corporate bonds as interest rates vary over time. This offsetting price behavior, known as negative-duration, is difficult for non-institutional investors to access, except through a fund like RISR. Consequently, RISR can be a powerful tool to hedge existing portfolios, with the aim of not sacrificing current income.
Yung Lim, CEO of Folio Beyond stated: "Our decision to rename the Fund reflects our belief that RISR has broad utility to investors seeking to manage risk in fixed income, equity and blended portfolios. Many investors have successfully used RISR to take a position on the recent Federal Reserve tightening of financial conditions, but RISR is not a simple directional bet. We believe the new name better aligns with our overall strategy for generating current income while managing risk in diverse investment strategies. "
Dean Smith, Chief Strategist of Folio Beyond and the primary portfolio manager for RISR added, “There is a lot of diversity of viewpoints in the market regarding Federal Reserve policy, the risks of recession, inflation and geo-political risks. But everyone can agree on the need to manage risk intelligently in an increasingly volatile market. We aren’t aware of any ETF other than RISR than can deliver this risk-return profile.”
About Folio Beyond
FolioBeyond is an asset management firm that utilizes advanced algorithms as well as artificial intelligence, (“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.
The fund intends to pay out dividends and interest income, if any, monthly. There is no guarantee these distributions will be made.
Disclosures
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. Please see the prospectus for a complete description of principal risks.
Definitions
Duration: measures a bond price’s sensitivity to changes in interest rates. The longer a bond’s duration, he higher its sensitivity to changes in interest rates and vice versa.
| 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 www.etfs.foliobeyond.com. Read the prospectus or summary prospectus carefully before investing. Distributed by Foreside Fund Services, LLC. |
George Lucaci
glucaci@foliobeyond.com
908-723-3372
