FolioBeyond Rising Rates ETF (RISR)

Overview

The FolioBeyond Rising Rates ETF (RISE) is designed to offer investors exposure to companies that may benefit from a rising interest rate environment. Its strategy typically involves identifying companies with strong balance sheets, pricing power, and business models that can thrive as borrowing costs increase. The ETF focuses on sectors or companies that are less sensitive to interest rate hikes or can pass on higher costs to consumers.

Reputation and Reliability

FolioBeyond is a relatively newer entrant in the ETF space, focusing on thematic and niche investment strategies. As such, its long-term reputation and reliability are still being established compared to more established ETF providers. Investors should conduct their own due diligence on the issuer.

Management Expertise

Information regarding the specific management team and their expertise for the FolioBeyond Rising Rates ETF is not readily available in public domain to assess. This is a factor to consider when evaluating the ETF.

Goal

The primary investment goal of the FolioBeyond Rising Rates ETF is to provide capital appreciation by investing in securities that are expected to perform well in a rising interest rate environment.

Investment Approach and Strategy

Strategy: The ETF aims to gain exposure to companies believed to be resilient or advantageous in an environment of increasing interest rates, rather than tracking a specific broad market index. It employs a selective approach to identify such companies.

Composition The ETF's composition typically includes equities of companies that exhibit characteristics such as strong cash flows, low debt levels, pricing power, and business models that can benefit from higher rates (e.g., certain financial institutions, value stocks, or companies with inelastic demand).

Market Share: Market share data for the FolioBeyond Rising Rates ETF is not widely reported due to its niche nature and potentially smaller AUM compared to larger, more established ETFs. Specific percentages are not readily available.

Total Net Assets (AUM): As of recent available data (which can fluctuate), the Total Net Assets (AUM) for the FolioBeyond Rising Rates ETF are not prominently disclosed in broad market data aggregators, suggesting it may be a smaller fund.

Key Competitors

• Invesco Senior Floating Rate ETF (VOTY)
• iShares Floating Rate Bond ETF (FLOT)
• SPDR Bloomberg Barclays Investment Grade Floating Rate ETF (FLRN)
• WisdomTree Floating Rate Treasury Fund (USFR)

Competitive Landscape

The competitive landscape for ETFs focused on rising rates or floating rate instruments is moderately crowded, with several established players offering both equity and fixed-income focused products. FolioBeyond's ETF differentiates itself by focusing on equities that may benefit from rising rates, whereas many competitors focus on floating-rate debt. Its advantages may lie in its targeted approach to specific equity sectors or companies, while disadvantages could include lower liquidity and less historical data compared to larger competitors.

Historical Performance: Historical performance data for the FolioBeyond Rising Rates ETF is not as extensively documented or analyzed as that of larger, more established ETFs. Investors should consult real-time financial data providers for up-to-date performance figures across various timeframes (e.g., 1-year, 3-year, 5-year).

Benchmark Comparison: The FolioBeyond Rising Rates ETF does not track a single, universally recognized broad market benchmark in the same way a passive index ETF does. Its performance should be evaluated against its stated objective and relevant sector-specific or thematic indices, as well as its peer group of rising rate or floating rate ETFs.

Expense Ratio: The expense ratio for the FolioBeyond Rising Rates ETF is not readily available in aggregated public financial data, suggesting it may be higher or not as widely disseminated as for larger ETFs. Investors should check the fund's prospectus or financial data providers for the exact figure.

Average Trading Volume

The average trading volume for the FolioBeyond Rising Rates ETF is generally lower than for more popular ETFs, which can impact ease of trading.

Bid-Ask Spread

The bid-ask spread for the FolioBeyond Rising Rates ETF can be wider than for highly liquid ETFs, potentially increasing trading costs for investors.

Market Environment Factors

Key market environment factors affecting the FolioBeyond Rising Rates ETF include inflation trends, central bank monetary policy (interest rate decisions), economic growth projections, and investor sentiment towards rate-sensitive sectors. A sustained period of rising inflation and aggressive rate hikes would generally be considered favorable for the ETF's objective.

Growth Trajectory

Information on the specific growth trajectory, strategy changes, and holding adjustments for the FolioBeyond Rising Rates ETF is not widely reported in public market analysis. Its growth is likely tied to investor interest in strategies that aim to navigate rising interest rate environments.

Competitive Edge

The FolioBeyond Rising Rates ETF's competitive edge stems from its specialized focus on equities positioned to benefit from rising interest rates, offering a thematic approach that differs from many floating-rate bond ETFs. This niche focus can appeal to investors seeking targeted exposure to specific market conditions. Its strategy aims to capitalize on companies with pricing power and robust financial health during inflationary periods.

Volatility

The volatility of the FolioBeyond Rising Rates ETF will largely depend on the performance of its underlying equity holdings. As it comprises stocks, it is subject to equity market volatility, which can be significant.

Market Risk

Market risks for this ETF include: interest rate risk (while designed to benefit, significant and rapid rate increases can still impact certain holdings), equity market risk (general downturns in the stock market), sector-specific risks (performance of the industries in which it invests), and issuer-specific risks related to the companies held within the ETF.

Ideal Investor Profile

The ideal investor for the FolioBeyond Rising Rates ETF is one who anticipates a sustained period of rising interest rates and seeks to gain exposure to equities that may perform well in such an environment. This investor is likely willing to accept the volatility associated with equity investments and has a medium to long-term investment horizon.

Market Risk

This ETF is best suited for investors who are actively seeking strategies to navigate a rising rate environment and are not simply looking for a passive index tracker. It could be considered for a portion of a diversified portfolio, particularly by those with a higher risk tolerance.

The FolioBeyond Rising Rates ETF (RISE) offers a specialized approach to navigating a rising interest rate environment by focusing on equities. Its strategy aims to identify companies that can thrive as borrowing costs increase, differentiating it from many fixed-income-focused rising rate products. While its niche focus can be an advantage, investors should be aware of potentially lower liquidity and the need for independent due diligence on the issuer. The ETF is best suited for investors with a specific outlook on interest rates and a tolerance for equity market volatility.

Data Sources:

• General financial market data aggregators
• ETF provider websites (where available)

Disclaimers:

This analysis is based on publicly available information and general market knowledge. Specific data points like AUM, expense ratios, and detailed historical performance may fluctuate and should be verified with the ETF's official documentation and reputable financial data providers. Investment decisions should be made after consulting with a qualified financial advisor and conducting thorough personal research.