Nancy Davis' interest-rate volatility ETF hits $1 billion in assets - Business Insider

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Nancy Davis once won an award as a 'rising star' in the hedge fund world. Now her star is rising in the exchange-traded-fund world, which is rapidly eclipsing that of hedge funds. In partnership with ING_news

Finally, the fund boasts strong returns. Morningstar says Davis' IVOL has returned 19.5% to investors since its inception in May 2019, and it's beaten more than 90% of inflation-protected bond funds over that stretch.

That backs up her belief that interest-rate markets are"the smartest markets" and that her fund will help investors profit from their intelligence. "They typically move before the credit markets, and definitely before the equity markets," she told Business Insider in May 2020. The ETF lets investors profit when the yield curve steepens, something that usually means inflation expectations are rising. It also protects them against the potential for volatility in interest rates. Few investors expect that kind of volatility today because of the Fed's low rates and stimulus efforts, but Davis argues that that means it's a very cheap option.," Davis said."It's very cheaply priced relative to other asset classes.

 

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