ETF Education Report: FOLIOBEYOND ALTERNATIVE INCOME AND INTEREST RATE HEDGE ETF (RISR)

What this ETF is trying to do

The RISR ETF is an exchange-traded fund designed to focus on alternative income and interest rate hedging. This means it looks for ways to provide income while also trying to protect against changes in interest rates.

What the numbers show

When looking at an ETF, it is important to separate the share price from the total return.

• Price Return: This measures only how much the share price moved. For the past year, the one-year price return was approximately -0.81%. The estimated price from roughly one year ago was $37.02, and the current price is $36.72.

• Total Return: This includes both price changes and distributions (cash payments). The one-year total return was approximately 5.26%.

Looking at more recent data, the year-to-date (YTD) price return is about 1.69%, while the YTD total return is higher at approximately 5.29%. Over a three-year period, the three-year price return was 9.68%, and the three-year total return was 32.81%.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 5.85%. This number describes the cash payments relative to the current ETF price. These distributions usually happen monthly, with Thursday being the most common day for payouts. Over the last 12 months, there were 12 distributions totaling approximately $2.15 per share.

It is important to remember that a high distribution yield does not mean an investor earned that exact percentage as their total return. Distributions provide cash income, but they do not guarantee that your original investment (your principal) will stay the same value.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund drops significantly over time. While a falling share price can sometimes look like erosion, they are not the same thing.

For this ETF, the erosion-risk score is 100, which is labeled as "No price erosion detected." Additionally, there is no severe erosion-risk flag for this fund. This suggests that the current price movement does not indicate a major problem with the fund's underlying value according to StockValueFinder's measurements.

Pros

• The total return has been positive over the one-year and three-year periods, even when the share price itself was down or grew more slowly.

• It provides regular monthly cash distributions.

Cons

• The one-year price return was negative, meaning the share price decreased slightly over that period.

Beginner takeaway

When you look at ETFs like RISR, always compare the "price return" to the "total return." The difference between these two numbers shows how much value the distributions added back to your investment. While income is helpful, investors often look for a balance where the share price stays steady or grows so that the cash they receive isn't offset by a drop in the value of their shares.