What RISR Is and What It Holds
Most bond funds lose money when interest rates rise. RISR, the FolioBeyond Alternative Income and Interest Rate Hedge ETF, is built to do the opposite.
It holds mostly interest-only mortgage strips (MBS IOs) and can also hold Treasuries to adjust its duration. At its last annual report (July 31, 2026), it held 94.2% in mortgage strips, 6.5% in a government money market fund, and no Treasury bonds. When a pool of home mortgages is split into pieces, the IO holder gets only the interest payments, not the principal. When rates rise, homeowners stop refinancing. The mortgages stay alive longer and keep paying interest, so the IO is worth more. When rates fall, people refinance, the loans get paid off early, the interest stops, and the IO is worth less.
The fund launched on September 30, 2021. The 10-year Treasury yield was 1.48% on October 1, 2021, and 5.21% on October 13, 2026. RISR has existed only during one of the biggest rate rises in decades.
The Income: $0.18 a Month, About 5.8% a Year
RISR's latest monthly distribution was $0.18 per share (ex-dividend September 29, 2026). At the $37.24 price, that annualizes to a 5.80% run-rate. Over the trailing 12 months (October 2025 to September 2026, 12 monthly payments), it paid $2.1471 per share, a 5.77% trailing distribution yield.
The 30-day SEC yield, which measures what the holdings are actually earning after fees, is lower at 5.37% (issuer-reported). The distribution is not fixed and can change from month to month.
Hypothetical illustration only: at $37.24, $10,000 buys about 268 shares. At $0.18 a month, that is about $48 a month, or roughly 5.8% a year, if the payout stays the same. This is arithmetic on the current rate, not a projection.
Performance and yield figures are historical and may change. Total return includes price movement and distributions where available. Past performance does not guarantee future results. Yield is not the same as total return.
Fund Facts
| Metric | RISR |
| Launch date | September 30, 2021 |
| Price (Oct 14, 2026 close) | $37.24 |
| 52-week range (closing prices) | $35.41 – $37.39 |
| Net assets | About $420 million |
| Expense ratio | 1.04% total in the prospectus: a 0.99% management fee plus 0.04% interest on borrowings and 0.01% acquired-fund fees, both from FY2025. The audited FY2026 ratio was 0.99%, with no interest expense. |
| Distribution frequency | Monthly |
| Trailing 12-month distribution yield | 5.77% |
| 30-day SEC yield | 5.37% |
| Credit quality | 100% AAA/agency |
| Effective duration | -1.0 years (fact sheet, 9/30/2026). Prospectus target: roughly -3 to -10 years. |
Negative duration means the fund tends to gain when rates rise. At -1.0 years, RISR is well short of the roughly -3 to -10 range in its prospectus and current fact sheet. (A marketing FAQ on the issuer's website cites -1 to -8.) In plain terms, the fund carries much less rate hedge today than its prospectus describes. At -1.0, a one-point rise in rates would be expected to lift the holdings' value by only about 1%.
Is the Income Eating the Principal?
No. Over its full life, it hasn't. RISR's share price rose while it paid out its distributions. The gap between price return and total return is the income paid to holders.
| Oct 1, 2021 – Oct 14, 2026 | RISR |
| Price return (share price only) | +48.63% |
| Total return (price + distributions) | +97.99% |
| Gap (income paid out) | 49.35 percentage points |
Many income funds show price erosion over time. RISR hasn't: about half of its total return came from the share price and about half from distributions. Section 4 covers whether the current $0.18 is still fully covered by what the holdings earn.
