For investors seeking momentum, FolioBeyond Alternative Income and Interest Rate Hedge ETF RISR is probably on the radar. The fund just hit a 52-week high and is up 26.3% from its 52-week low price of $31.22/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
RISR in Focus
The FolioBeyond Alternative Income and Interest Rate Hedge ETF is an actively managed exchange-traded fund that seeks to provide diversification benefits and helps to manage risk from interest rate volatility, while generating current income under a wide range of interest rate environments. The product charges 113 bps in annual fees (See: all Mortgage-Backed Security ETFs here).
Why the Move?
The interest rates in the United States have been on the higher side lately. Due to tariff-driven inflation risks, the Fed is expected to act less-dovish this year. Overall, fears of China's treasury selling, inflation risks, a less-dovish Fed & basis trade unwind hit bond market lately. As a result, this ETF (which is used to fight rising rates) has hit a 52-week high yesterday.
More Gains Ahead?
The ETF RISR might continue its strong performance in the near term, with a positive weighted alpha of 7.95, which gives cues of a further rally.
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This article originally published on Zacks Investment Research (zacks.com).
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