RISESit Rising Rate ETF
RISE Fund Description
RISE aims to capitalize on rising interest rates by taking short positions in futures contracts on 2-, 5-, and 10-year Treasurys. The fund is actively managed.
RISE Factset Analytics Insight
RISE is designed to gain in value if interest rates increase. The fund uses futures contracts and options on Treasurys, making it a pure-play bet on rising rates for US investors. RISE explicitly aims for a duration of -10, meaning it should gain 10% in value for an across-the-curve 1% increase in interest rates. The explicit duration target sets RISE apart from traditional inverse Treasury funds like TBF, which deliver equally potent—but variable—negative duration. As such, RISE may appeal as a precise hedging tool, as well as a tactical play on a rate hike. RISE is actively managed but follows a stable strategy that takes short positions in Treasury futures as well as listed options to hit its -10 duration target. RISE also differs from traditional inverse ETFs in its commodity pool structure: investors receive a K-1 at tax time. RISE isn’t cheap: It charges a significantly higher fee than peer ETFs, and like all inverse fixed income products, bears the negative carry of shorting yield. Wide spreads and lackluster liquidity make the fund difficult to use as intended.
RISE CHARTS AND PERFORMANCE
RISE Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of RISE. RISE is rated a N/A out of 5.