Angel Oak Income ETF (CARY)

Overview

The Angel Oak Income ETF (US: HOTP) is an actively managed exchange-traded fund that seeks to generate current income and capital appreciation by investing primarily in a diversified portfolio of income-producing securities. Its focus is on opportunities within the fixed income markets, particularly emphasizing credit-sensitive sectors.

Reputation and Reliability

Angel Oak Capital Advisors, LLC is a well-established alternative credit asset manager known for its expertise in fixed income and securitized credit markets. They have a proven track record in managing complex credit strategies.

Management Expertise

The ETF is managed by experienced portfolio managers at Angel Oak Capital Advisors, who possess deep knowledge and extensive experience in credit research, security selection, and risk management within the fixed income landscape.

Goal

The primary investment goal of the Angel Oak Income ETF is to provide investors with a consistent stream of income and the potential for capital appreciation, prioritizing risk-adjusted returns.

Investment Approach and Strategy

Strategy: The ETF is actively managed and does not track a specific index. Its strategy involves a bottom-up approach to security selection, identifying mispriced opportunities across various fixed income sectors.

Composition The ETF invests in a diverse range of fixed income instruments, including but not limited to corporate bonds, mortgage-backed securities (both agency and non-agency), asset-backed securities, and other income-generating debt instruments. The portfolio is actively managed to adjust to market conditions and seek yield.

Market Share: Specific market share data for the Angel Oak Income ETF within its niche sector is not readily available in the public domain. Its focus is on actively managed fixed income, which differs from passive index-tracking ETFs.

Total Net Assets (AUM): 632000000

Key Competitors

• Invesco Senior Loan ETF (BKLN)
• iShares iBoxx $ High Yield Corporate Bond ETF (HYG)
• SPDR Bloomberg High Yield Bond ETF (JNK)
• WisdomTree Floating Rate Treasury ETF (USFR)

Competitive Landscape

The actively managed fixed income ETF space is highly competitive, with numerous funds offering exposure to various debt categories. Angel Oak Income ETF competes on its active management expertise and focus on credit-sensitive securities, aiming to outperform passive benchmarks. Its advantages lie in the potential for alpha generation and tactical allocation, while potential disadvantages include higher fees compared to passive ETFs and the inherent risks of active management.

Historical Performance: Historical performance data for the Angel Oak Income ETF shows varied returns over different periods, influenced by market conditions in the fixed income sector. Investors should review specific timeframes and associated returns for a comprehensive understanding.

Benchmark Comparison: As an actively managed fund, the Angel Oak Income ETF's performance is typically compared against relevant fixed income benchmarks, such as the Bloomberg U.S. Aggregate Bond Index, or specific segments of the high-yield or securitized markets. Its effectiveness is judged by its ability to outperform these benchmarks net of fees.

Expense Ratio: 0.85

Average Trading Volume

The ETF's average trading volume is moderate, indicating reasonable liquidity for most retail investors, though institutional traders may find it less liquid than larger, more established ETFs.

Bid-Ask Spread

The bid-ask spread for the Angel Oak Income ETF is generally tight enough for typical trading activity, reflecting adequate market depth for its asset class and AUM.

Market Environment Factors

The ETF is sensitive to interest rate movements, credit spread fluctuations, and overall economic health. Factors like inflation, central bank policy, and investor sentiment towards risk assets significantly impact its performance.

Growth Trajectory

Angel Oak Income ETF's growth trajectory is tied to its ability to consistently generate attractive income and manage credit risk effectively. Changes in its strategy and holdings are driven by the management team's assessment of market opportunities and risks within the fixed income universe.

Competitive Edge

The Angel Oak Income ETF's competitive edge stems from its active management approach, leveraging Angel Oak Capital Advisors' deep expertise in credit analysis and securitized products. This allows for tactical allocation to capture opportunities in less liquid or complex fixed income markets. Their focus on generating income through a diversified portfolio of credit-sensitive assets provides a distinct offering for income-seeking investors.

Volatility

The ETF exhibits moderate volatility, reflecting the inherent risks of investing in income-producing securities, particularly those with credit exposure. Its volatility is generally higher than that of investment-grade government bonds but lower than equity ETFs.

Market Risk

Specific risks include interest rate risk (affecting bond prices), credit risk (default of underlying issuers), prepayment risk (for mortgage-backed securities), and liquidity risk, especially in stressed market conditions.

Ideal Investor Profile

The ideal investor for the Angel Oak Income ETF is one seeking a reliable income stream and willing to accept moderate risk for potentially higher yields than traditional fixed income. This includes individuals looking to diversify their portfolio with actively managed credit exposure.

Market Risk

This ETF is best suited for long-term investors who prioritize income generation and have a moderate risk tolerance. It is less suitable for short-term traders or those seeking purely capital preservation.

The Angel Oak Income ETF (HOTP) is an actively managed fund focused on generating income and capital appreciation through diversified fixed income investments, with a specialization in credit-sensitive sectors. Managed by experienced professionals at Angel Oak Capital Advisors, it aims to outperform benchmarks through strategic security selection. While it offers a distinct approach to income generation, investors should be aware of its moderate volatility and associated market risks. Its competitive advantage lies in its active management expertise within the complex fixed income landscape.

Data Sources:

• Angel Oak Capital Advisors Official Website
• Financial Data Providers (e.g., Morningstar, Bloomberg Terminal - data accessed via APIs)
• ETF Regulatory Filings (SEC)

Disclaimers:

This information is for illustrative purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions. Data accuracy is subject to the availability and timeliness of third-party sources.