5-Star Morningstar-Rated Interest Rate Hedge ETF Reaches Significant Institutional Milestone
RISR has a 5-star Overall Morningstar rating and is ranked #6 among 191 funds in Morningstar’s Nontraditional Bond Funds category over a 3-year period ending on 4/30/26. The rating and ranking are based on Morningstar’s methodology of comparing risk-adjusted returns.
NEW YORK, June 01, 2026 (GLOBE NEWSWIRE) — FolioBeyond, LLC, the investment management firm behind the FolioBeyond Alternative Income and Interest Rate Hedge ETF (NYSE Arca: RISR), today announced that the fund has surpassed $250 million in assets under management — a landmark milestone that underscores growing investor demand for innovative fixed income solutions in an era of persistent rate uncertainty.
RISR is designed to do what most fixed income instruments cannot- benefit when interest rates rise. By investing in interest-only government agency-backed mortgage-backed securities (MBS IOs) issued or guaranteed by GNMA, FNMA, and FHLMC, the fund targets a negative duration profile of approximately negative three to negative nine years. This construction positions RISR as a natural complementary exposure within diversified fixed income allocations, aiming to offset losses in traditional bond portfolios during periods of rate stress. Additionally, RISR has historically delivered annual income of approximately 5-6%, paid in monthly distributions, generated entirely from government agency-backed securities.
“Reaching $250 million in AUM reflects the confidence that both wealth managers and institutional investors have placed in RISR’s differentiated strategy. In today’s environment — where the threat of re-accelerating inflation and sustained elevated rates remains real — a dedicated interest rate diversifier with meaningful income is no longer a luxury; it is prudent portfolio management.”
— Yung Lim, CEO FolioBeyond
Since its inception on September 30th, 2021, RISR has attracted steady inflows from financial advisors and institutional allocators seeking to complement traditional fixed income exposures. The fund’s “quantamental” investment approach – blending quantitative algorithms with active portfolio management — has earned RISR an Overall 5-Star Rating from Morningstar and a ranking of #6 among 191 funds in the Nontraditional Bond Funds Category.
The $250 million AUM threshold carries particular significance in the ETF industry, signaling the fund’s transition from an emerging strategy to an established, institutionally viable vehicle. Strong recent net inflows — exceeding $32 million over the last month and $40 million over the trailing quarter – reflect an accelerating adoption curve among advisors and allocators.
“We built RISR to solve a genuine problem in fixed income portfolios — the asymmetric risk that rising rates impose on investors. This milestone tells us the market agrees. We are grateful to every advisor and institution that has trusted us with their clients’ capital, and we remain committed to delivering the performance and income this strategy was designed to produce.”
– Dean Smith, Chief Portfolio Strategist, FolioBeyond
ABOUT FOLIOBEYOND
Founded in 2017, FolioBeyond is an independent investment management firm specializing in institutional-quality fixed income and model portfolio strategies. The firm combines extensive capital markets experience with advanced quantitative modeling, proprietary analytics, and AI/machine learning-supported tools to deliver investment management and risk management solutions.
For more information, visit www.foliobeyond.com and www.etfs.foliobeyond.com.
IMPORTANT DISCLOSURES
Past performance does not guarantee future results. ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the fund.
Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other information about the fund and should be read carefully before investing. To obtain a prospectus, visit www.etfs.foliobeyond.com/risr or call 866-497-4963
Morningstar classifies funds into categories based on similar investment objective and strategy. Morningstar percentile rankings are based on a fund’s total return compared to its Morningstar Category of exchange-traded and open-end mutual funds. The highest percentile rank is 1 and the lowest percentile rank is 100.
The Morningstar Rating™ for funds, or “star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds and separate accounts) with at least a three-year history without adjustment for sales load. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk- Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars, and the bottom 10% receive one star. The Overall Morningstar Rating™ for a managed product is derived from a weighted average of the performance figures associated with its three-, five- and 10-year (if applicable) Morningstar Rating™ metrics. The weights are: 100% three-year rating for 36 – 59 months of total returns, 60% five-year rating/40% three-year rating for 60 – 119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. As of 9/30/2025, RISR was rated against the following number of Nontraditional Bond Funds over the following periods: 235 for the 3-year time period. RISR received 5 stars for those periods. Ratings for other share classes may differ. Past performance is no guarantee of future results.
Fund Risks: An investment in the Fund is subject to numerous risks including the possible loss of principal. There can be no assurance that the Fund will achieve its investment objective. Equity securities, such as common stocks, are subject to market, economic and business risks that may cause their prices to fluctuate. As with all ETFs, Fund shares may be bought and sold in the secondary market at market prices. The market price normally should approximate the Fund’s net asset value per share (NAV), but the market price sometimes may be higher or lower than the NAV. The Fund is new with a limited operating history. There are a limited number of financial institutions authorized to buy and sell shares directly with the Fund, and there may be a limited number of other liquidity providers in the marketplace. There is no assurance that Fund shares will trade at any volume, or at all, on any stock exchange. Low trading activity may result in shares trading at a material discount to NAV. Please see the RISR prospectus and summary prospectus for a complete description of principal 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.
Distributed by Foreside Fund Services, LLC
CONTACT George Lucaci, Global Head of Distribution, FolioBeyond, LLC glucaci@foliobeyond.com 908-723-3372
