Angel Oak Income ETF (CARY)

Overview

The Angel Oak Income ETF (ANGL) is an actively managed ETF that seeks to generate income by investing primarily in U.S. mortgage-backed securities (MBS) and other fixed-income instruments. It aims to provide a higher yield than traditional fixed-income investments while managing risk through active security selection and sector allocation.

Reputation and Reliability

Angel Oak Capital Advisors is a reputable investment management firm specializing in mortgage credit and other structured credit investments. They have a long track record in the space.

Management Expertise

The management team has extensive experience in analyzing and managing mortgage-backed securities and other credit-sensitive fixed-income assets.

Goal

To provide current income.

Investment Approach and Strategy

Strategy: Actively managed, investing primarily in U.S. mortgage-backed securities and other fixed-income instruments.

Composition Primarily mortgage-backed securities, with allocations to other fixed-income assets like corporate bonds and asset-backed securities.

Market Share: ANGL has a moderate market share within the actively managed fixed-income ETF space.

Total Net Assets (AUM): 1386220000

Key Competitors

• PIMCO Active Bond ETF (BOND)
• DoubleLine Total Return Bond ETF (DLBL)
• SPDR Portfolio Aggregate Bond ETF (SPAB)

Competitive Landscape

The actively managed fixed-income ETF space is competitive, with many established players. ANGL differentiates itself by focusing on mortgage-backed securities. Advantages include potentially higher yield compared to broad market bond ETFs. Disadvantages could be higher credit risk and interest rate sensitivity than other broad market bond ETFs.

Historical Performance: Historical performance data is not available in this example but can be obtained from financial data providers.

Benchmark Comparison: Benchmark comparison is not available in this example but can be obtained from financial data providers comparing ANGL to its stated benchmark.

Expense Ratio: 0.75

Average Trading Volume

The ETF's average trading volume provides an indication of its liquidity and the ease of buying or selling shares.

Bid-Ask Spread

The bid-ask spread represents the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept.

Market Environment Factors

Economic indicators like interest rates, inflation, and housing market conditions significantly impact ANGL's performance. Changes in monetary policy and credit spreads also affect the ETF.

Growth Trajectory

The growth trajectory of ANGL depends on investor demand for income-oriented investments and the performance of the mortgage-backed securities market. The ETF's strategy may adapt to changing market conditions.

Competitive Edge

ANGL's competitive edge lies in Angel Oak's expertise in mortgage credit and their ability to actively manage the portfolio to generate higher income. Their specialized knowledge of the MBS market allows them to identify undervalued securities and manage risk effectively. The active management strategy provides flexibility to adjust the portfolio based on changing market conditions. This focus on a specific niche within the fixed-income market can lead to differentiated returns.

Volatility

Historical volatility data would be necessary to assess the risk of ANGL.

Market Risk

Risks include interest rate risk, credit risk (particularly related to mortgage-backed securities), and prepayment risk. Changes in the housing market and economic conditions can impact the value of the underlying assets.

Ideal Investor Profile

The ideal investor is someone seeking income from their portfolio and willing to accept a moderate level of risk. This ETF is suitable for investors who understand the risks associated with mortgage-backed securities and are comfortable with active management.

Market Risk

ANGL is likely best for long-term investors seeking income, but active traders may also use it to express a view on the mortgage market.

The Angel Oak Income ETF (ANGL) is an actively managed ETF focused on generating income through mortgage-backed securities. It offers a specialized approach to fixed income investing, leveraging Angel Oak's expertise in the mortgage market. The ETF provides potentially higher yields than traditional bond funds, but also carries higher credit and interest rate risks. It is suitable for income-seeking investors with a moderate risk tolerance who understand the complexities of mortgage-backed securities. Investors should review the ETF's holdings and strategy to ensure it aligns with their investment goals and risk profile.

Data Sources:

• Angel Oak Capital Advisors Website
• ETF.com
• Morningstar

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.