Navigating Rate Hikes: The FolioBeyond ETF’s Unique Approach

In today’s challenging inflationary environment, the FolioBeyond Rising Rates ETF (RISR) employs a distinctive investment methodology. This fund focuses on mortgage-backed securities interest-only strips (MBS IOs) alongside U.S. Treasury bonds—a strategic pairing specifically designed to capitalize on increasing interest rates.

Current economic indicators continue to show persistent inflationary pressures. Market projections indicate U.S. consumer prices will average 2.7% throughout 2025, while core inflation remains stubbornly elevated at approximately 3%. With the Federal Reserve demonstrating caution regarding additional rate reductions, the probability of a December cut now sits below 50%. These conditions have already pushed the yield on 10-year Treasury notes upward to 4.14%.

The fund’s distinctive characteristic lies in its utilization Read more...