This actively managed Exchange Traded Fund (ETF) is designed to help investors mitigate the impact of rising interest rates. It primarily achieves this by investing in strategies that are expected to profit when interest rates climb. Specifically, the fund's main approaches include: 1. Purchasing "long put options": These are options on either ETFs that primarily hold U.S. Treasury securities or directly on U.S. Treasury futures contracts. These positions are structured to increase in value if the price of U.S. government bonds falls (which typically occurs when interest rates rise). 2. Acquiring "long interest rate payer swap options" (swaptions): These instruments give the fund the right to enter into a swap agreement where it would pay a fixed interest rate and receive a floating one. This strategy becomes profitable if interest rates increase, as the floating rate received would then be higher. It's important to note that the fund is classified as "non-diversified," meaning it has the flexibility to concentrate its investments in fewer assets or sectors.

RATE Holdings & Sector Breakdown

RATE Holdings & Sector Breakdown