For investors seeking momentum, Foliobeyond Rising Rates ETF (RISR Quick QuoteRISR - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 16.33% from its 52-week low price of $29.64/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

This ETF is active and does not track a benchmark. The Foliobeyond Rising Rates ETF 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. The fund has a dividend yield of 6.55% and invests primarily in interest-only mortgage-backed securities (MBS IOs) and U.S. Treasury bonds. The product charges 99 bps in annual fees (See: all Mortgage-Backed Security ETFs).

Why the Move?

The interest rate hedge corner of the broad ETF world has been an area to watch lately, given the hawkish stance of the Fed. The Fed has been hiking interest rates since the start of 2022 to tame the persistently high inflation levels. The increased probability of another rate hike later in the year and the reduced number of rate cuts in 2024 indicate a longer period of higher interest rates. The U.S. 10-year Treasury yield experienced a brief uptick above 5% this week and has been hovering around the 5% threshold. The fund becomes more attractive with rising rate worries gripping the bond investing world. 

More Gains Ahead?

Currently, RISR might continue its strong performance in the near term, with a positive weighted alpha of 9.41, which gives cues to a further rally.