Mortgage-Backed ETF (RISR) Hits New 52-Week High

For investors seeking momentum, FolioBeyond Alternative Income and Interest Rate Hedge ETF RISR is probably on radar. The fund just hit a 52-week high and is up 15.8% 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

FolioBeyond Alternative Income and Interest Rate Hedge ETF is an actively managed 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. It invests primarily in interest-only mortgage-backed securities (MBS IOs) and U.S. Treasury bonds. The product charges 1.13% in annual fees (see: all the Mortgage-Backed Security ETFs here).

Why the Move?

This corner of the market has been an area to watch lately, given the surge in Treasury yields. The 10-year yields are headed higher to 5% in the near term, reflecting worries that the incoming Trump administration's policies will increase an already bloated fiscal deficit and revive inflation. The latest job data has diminished the chances of rate cuts in the near term. 

More Gains Ahead?

Currently, RISR might remain strong, given a weighted alpha of 16.21 and a 20-day volatility of 7.49%. As a result, there is definitely still some promise for risk-aggressive investors who want to ride this surging ETF.

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