Duration is a measure of sensitivity of the price of a fixed-income asset to changes in interest rate risks, so a a low duration would translate to a smaller sensitivity to shifting rates.
Bryce Doty, portfolio manager at Sit Investment Associates, tells Barron’s “investors who like the concept should buy it well ahead of a Fed hike. Rates usually start moving up well ahead of an actual move in the fed funds by the Federal Open Market Committee. The best way to think of a fund like RISE is ascollision insurance.”
Sit Rising Rate ETF
