The Sit Rising Rate ETF (RISE) is down 5.6% since it was launched in February. Most investors at that time expected rates to be substantially higher by now, yet that has not been the case. Bryce Doty, Senior Fixed Income Manager at Sit Investment Associates, said the Federal Reserve essentially fooled – or lulled - Wall Street into expecting far more action. 'You saw employment come down, we are basically at full employment. You’ve seen low inflation, but the Fed worries about employment cost index and that’s hovering right around their 2% target,' said Doty, who’s ETF invests in exchange traded futures contracts and options on futures on two, five and 10-year US Treasury securities. Doty said he started the rising rate strategy three years ago for institutional bond clients. He said the RISE ETF is meant to be used in conjunction with an individual investor’s existing bond portfolio. 'It’s meant to smooth out the ride,' said Doty. 'With how volatile things have been, people are looking forward to having some peace of mind.'