February 19, 2015 02:40 PM Eastern Standard Time

SUMMIT, N.J.—( BUSINESS WIRE )—ETF Managers Capital LLC, a subsidiary of ETF Managers Group, in partnership with Sit Investment Associates today successfully launched the first exchange traded fund (ETF) designed to hedge rising interest rates by targeting a constant negative 10 year bond duration.

Fund details:

Sit Rising Rate ETF (RISE) seeks to profit from rising interest rates by tracking the performance of a portfolio consisting of exchange traded futures contracts and options on futures on 2, 5 and 10-year U.S. Treasury securities weighted to achieve a targeted negative 10 year average effective portfolio duration.

With a negative 10-year duration, the idea is that a 1% rise in U.S. Treasury yields results in about a 10% rise in price. So the price moves nearly 10 times the change in yield. RISE is focused on the 2 and 5-year U.S. Treasury futures with a minor weighting in 10-year futures.

Sam Masucci, founder and CEO of ETF Managers Group said: “With the Sit Rising Rate ETF, we bring Sit Investment Associates’ institutional portfolio management expertise to an expanded range of investors interested in hedging interest rate volatility. A small allocation of 10 to 20 percent in RISE can significantly reduce the interest rate risk within a bond portfolio.”

Bryce Doty, CFA, Senior Fixed Income Portfolio Manager at Sit Investment Associates said, “Not only can RISE be used to hedge against rising interest rates, investors can actually benefit from an increase in short-term rates. We have used this strategy successfully for our institutional clients since we developed it almost four years ago. RISE is a great complement to most bond portfolios.”

ETF Managers Capital LLC. is a member of the ETF Managers Group family of ETF service companies, is the commodity pool operator to the Fund and Sit Fixed Advisors II LLC is the commodity trading advisor. For more information, please read the prospectus which is available at www.risingrateetf.com

About ETF Managers Capital. ETF Managers Capital LLC ETF Managers Capital LLC is registered with the Commodity Futures Trading Commission as a “commodity pool operator” and is a member of the National Futures Association. It is a wholly owned subsidiary of Exchange Traded Managers Group LLC (ETF Managers Group), a leading Exchange Traded Funds (ETF) private label services company. ETF Managers Group offers a full range of ETF product services to the asset management community including commodity pool ETPs as well as both active and passive ETF funds. The services provided include product operations, regulatory, financial and compliance management. ETF Managers Group offers active marketing and dedicated wholesale services for all ETF product types.

About SIT FIXED INCOME ADVISORS II, LLC: Sit Fixed Income Advisors II, LLC (“Sit Advisors”) is registered as a “commodity trading advisor” and will act as such for the Fund. Sit Advisors is a subsidiary of Sit Investment Associates, Inc. (“Sit”). Sit is a full product global asset manager offering management expertise in domestic equities, international equities and fixed income instruments. They have senior, experienced investment professionals who are actively involved in the investment process and client servicing. Sit has the resources of a $14.8 billion investment management firm working for the benefit of their clients.

Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s summary and statutory prospectuses, which may be obtained by calling 844-ETF MGRS (844-383-6477) or visiting www.risingrateetf.com . Read the prospectus carefully before investing.

Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Narrowly focused investments typically exhibit higher volatility. Investments in foreign securities involve political, economic and currency risks, greater volatility and differences in accounting methods. These risks are greater for investments in emerging markets. The Funds are non-diversified, meaning they may concentrate their assets in fewer individual holdings than a diversified fund. Diversification does not guarantee a profit or protect from loss in a declining market. Investments in smaller companies tend to have limited and greater price volatility that larger-capitalization companies. Several foreign countries have begun a process of privatizing certain entities and industries, which may lose money or be nationalized. The Fund invests in some economies that are heavily dependent upon trading with key partners. Any reduction in this trading may cause an adverse impact on the economy in which the Fund invests.

ETF Managers Capital, LLC serves as the commodity pool operator and Sit Fixed Income Advisors II, LLC serves as the commodity trading advisor to the fund.

The Funds are distributed by Esposito Securities, LLC, which is not affiliated with ETF Mangers Group or any of its affiliates.