At a glance
RDFI charges 4.23% a year, above the 0.86% average of the 7 funds most like it (the most expensive of 8). It has $83.4M in assets, the 8th largest of that group; it paid 8.87% of its price in distributions over the past 12 months, monthly. Over the past year it returned −3.1% with distributions reinvested, the weakest of those 8 funds; over three years it returned +11.2% a year. At its worst it fell 20.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 22 months after the low. Its ten largest positions make up 46.7% of the fund, out of 33 in all.
The short version
Rareview Dynamic Fixed Income ETF (RDFI) is an actively managed "fund of funds" that mostly buys bond closed-end funds, seeking ones whose shares trade below or above the value of their assets. It pays monthly and had a trailing yield of 8.87% as of October 27, 2026. Its total expense ratio is 4.23%, which is very high for an ETF. Part of that is the cost of the funds it owns.
Price history
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RDFI -3.1% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| RDFI official prospectus, to Dec 31, 2025 | — | +9.75% | — | — | — | +6.24% |
| RDFI price data to Oct 27, 2026 | -3.1% | -3.1% | +11.2% | +1.5% | — | +3.1% |
- Over the year to Oct 27, 2026, RDFI returned -3.1%, 8th of 8 among similar funds.
- Its 5-year annualized return was +1.5%.
- Its worst full calendar year was 2022 (-17.0%); its best was 2024 (+13.2%).
- The deepest fall in its price history was 23.7% (Sep 13, 2021 to Oct 24, 2022), recovered by Aug 19, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -3.1% | — |
| 2025 | +9.8% | +9.75% |
| 2024 | +13.2% | +13.17% |
| 2023 | +8.5% | +8.70% |
| 2022 | -17.0% | -17.12% |
| 2021 | — | +12.62% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 20.2% over that stretch · deepest drop along the way 20.6%, back to its old high 21.7 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.6000 | |
| 2025 | $1.9400 | 0.0% |
| 2024 | $1.9400 | +17.6% |
| 2023 | $1.6500 | +54.2% |
| 2022 | $1.0700 |
What's inside
As of Jun 30, 2026, the fund held 33 securities; the ten largest made up 46.66% of assets, and 6.36% sat in cash and money-market holdings.
| Fund held | Weight | |
|---|---|---|
| MORGAN STANLEY EMERGING MARKETS DOMESTIC DEBT FUND Other | 7.39% | |
| BLACKROCK CREDIT ALLOCATION INCOME TRUST Other | 5.15% | |
| TEMPLETON EMERGING MARKETS INCOME FUND Other | 4.89% | |
| BLACKROCK CORPORATE HIGH YIELD FUND INC Other | 4.65% | |
| ABERDEEN ASIA PACIFIC INCOME FUND INC Other | 4.65% | |
| BROOKFIELD REAL ASSETS INCOME FUND INC Other | 4.29% | |
| WESTERN ASSET EMERGING MARKETS DEBT FUND INC Other | 4.01% | |
| WESTERN ASSET HIGH INCOME OPPORTUNITY FUND INC Other | 3.95% | |
| DOUBLELINE YIELD OPPORTUNITIES FUND Other | 3.84% | |
| BLACKROCK MUNIHOLDINGS FUND INC Other | 3.84% | |
| COHEN STEERS LIMITED DURATION PREFERRED AND INCO Other | 3.69% | |
| FIRST TRUST INTERMEDIATE DURATION PREFERRED INCO Other | 2.91% | |
| MORGAN STANLEY EMERGING MARKETS DEBT FUND INC Other | 2.74% | |
| KKR INCOME OPPORTUNITIES FUND Other | 2.69% | |
| BLACKROCK MUNIYIELD QUALITY FUND INC Other | 2.57% |
By country
United States 92.32%By asset type
Other 92.32%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $7.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +4.08%, -0.05%, +1.51%.
How it works
RDFI puts at least 80% of its net assets into fixed income closed-end funds that pay regular cash distributions. A closed-end fund issues a fixed number of shares that trade on an exchange, so its price can sit below its net asset value (NAV, the per-share value of its holdings) or above it. These gaps are called a discount and a premium. The adviser uses a top-down economic model to weight custom asset classes. These include investment-grade and high-yield corporate bonds, municipal bonds, convertibles, leveraged loans, mortgage-backed securities and emerging market debt. Within each class, a quantitative screen of discounts and premiums picks the funds the adviser expects to deliver the most after-tax income.
Returns come from the underlying funds' distributions and from gains when a discount narrows. The fund may also buy just before a payout date to collect a distribution, then sell. It generally sells once a discount returns to what the adviser considers fair value. It can hold up to 30% in ETFs. Trading is frequent: portfolio turnover was 153%.
As of June 30, 2026, it held 33 funds. The largest were Morgan Stanley Emerging Markets Domestic Debt Fund (7.4%), BlackRock Credit Allocation Income Trust (5.2%) and Templeton Emerging Markets Income Fund (4.9%). Cash was 6.36%. It also held small hedges: options on 3-month SOFR, a benchmark short-term interest rate, and Brazilian real futures.
What it really costs
- RDFI charges 4.23% a year, versus an average of 0.86% for the similar funds below (8th of 8, cheapest first).
- Of that, 0.97% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $425 in the first year and $4,396 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| RDFI | $425 | $1,284 | $2,156 | $4,396 |
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
Its main draw is a high monthly payout from a mix of bond closed-end funds, though it comes with high costs and deep past drops.
RDFI could add a high monthly income stream. Its trailing 12-month yield was 8.87% as of October 27, 2026, or about $1.92 per share. The trade-offs are cost and price swings. In the SEC's standard example, its 4.23% expense ratio costs about $425 in the first year and $4,396 over 10 years on $10,000. The fund launched in October 2020, so it has no record for the 2008 crisis or the 2020 crash. In the 2022 bear market it fell 20.6%, and 2022 was its worst calendar year at -17.12%. Its deepest drop was 23.7%, from September 2021 to October 2022, and it took about 22 months to recover, in August 2024. A retiree who had to sell shares in late 2022 would have locked in losses. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income seekers who want monthly payouts drawn from many bond closed-end funds, with a trailing yield of 8.87% as of October 27, 2026.
- Investors who want a manager to hunt for discounted closed-end funds in emerging market debt, high yield, municipal bonds and preferreds.
- Holders who can sit through deep drops, like its 23.7% decline from 2021 to 2022, in exchange for credit-heavy income.
Look elsewhere if
- Cost-conscious investors: the 4.23% expense ratio works out to about $425 in year one per $10,000 in the SEC's example.
- Anyone seeking a steady, low-risk bond holding: it lost 17.12% in 2022 and took about 22 months to regain its peak.
- Investors who prefer simple, low-turnover funds: RDFI owns 33 other funds and trades heavily, with 153% portfolio turnover.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| RDFI this fund | 4.23% | $83.4M | -3.1% | +11.2% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does RDFI pay monthly dividends?
Yes. RDFI pays distributions monthly. Over the 12 months to October 27, 2026, it paid about $1.92 per share, a trailing yield of 8.87%. The money comes from the closed-end funds it owns. Gains from selling funds bought at a discount can add to it. Because the holdings and their payouts change, the monthly amount can vary and is not guaranteed.
Why is RDFI's expense ratio so high?
RDFI's total expense ratio is 4.23%, according to its prospectus filed January 27, 2026. Its management fee is only 0.97%. As a fund of funds, its total cost also includes the expenses of the closed-end funds it owns, and many of those carry their own fees and borrowing costs. In the SEC's standard example, $10,000 invested would cost about $425 in the first year and $4,396 over 10 years.
Is RDFI good for retirement income?
It depends on the retiree's tolerance for risk and cost. RDFI may suit retirees who want high monthly income, with a trailing yield of 8.87% as of October 27, 2026. But it fell 17.12% in 2022, its deepest drop reached 23.7%, and recovery took about 22 months. Its 4.23% expense ratio also reduces returns every year. It behaves more like a credit-sensitive income fund than a safe bond holding.
How has RDFI performed?
Results have been mixed. Per its prospectus, RDFI returned 12.62% in 2021, -17.12% in 2022, 8.7% in 2023, 13.17% in 2024 and 9.75% in 2025. Its average annual return since its October 2020 inception was 6.24% through December 31, 2025. Based on price data, it was down 3.1% over the year to October 27, 2026, and down 5.3% over the prior three months.
What are RDFI's top holdings?
As of June 30, 2026, RDFI's largest holdings were Morgan Stanley Emerging Markets Domestic Debt Fund (7.4%), BlackRock Credit Allocation Income Trust (5.2%), Templeton Emerging Markets Income Fund (4.9%), BlackRock Corporate High Yield Fund (4.6%) and Aberdeen Asia Pacific Income Fund (4.6%). It held 33 funds in total, and the top 10 made up about 47% of assets. Cash was 6.36%, alongside small interest-rate and currency hedges.