3EDGE Dynamic Fixed Income ETF (EDGF)

Overview

The 3EDGE Dynamic Fixed Income ETF (TFIF) is an actively managed ETF that seeks to provide total return by dynamically allocating across various fixed income sectors. It aims to adapt to changing market conditions and capitalize on opportunities in the bond market.

Reputation and Reliability

3EDGE Asset Management is a smaller, but growing, investment management firm. They are known for their tactical asset allocation strategies and have built a solid reputation.

Management Expertise

The management team has considerable experience in fixed income investing and tactical asset allocation, with a focus on risk management and active strategy implementation.

Goal

To provide total return by dynamically allocating across various fixed income sectors.

Investment Approach and Strategy

Strategy: TFIF does not track a specific index. It's actively managed, using a dynamic allocation strategy to adjust its holdings based on macroeconomic conditions and market trends.

Composition The ETF holds a diverse portfolio of fixed income securities, including government bonds, corporate bonds, mortgage-backed securities, and other fixed income instruments. The allocation changes based on the investment strategy.

Market Share: TFIF holds a relatively small market share within the broader fixed income ETF landscape.

Total Net Assets (AUM): 37579633

Key Competitors

• iShares Core U.S. Aggregate Bond ETF (AGG)
• Vanguard Total Bond Market ETF (BND)
• SPDR Portfolio Aggregate Bond ETF (SPAB)

Competitive Landscape

The fixed income ETF market is dominated by large, passively managed funds like AGG and BND. TFIF differentiates itself through active management and dynamic allocation, which can offer potentially higher returns but also carries higher risk. Its advantages include adaptability and potential for outperformance in specific market environments, while disadvantages include higher expense ratio and dependence on the manager's skill.

Historical Performance: Historical performance data should be analyzed to get an insight to it's return, risk and volatility.

Benchmark Comparison: The ETFu2019s performance should be compared to a broad fixed income benchmark, such as the Bloomberg Barclays U.S. Aggregate Bond Index, to assess its effectiveness in generating alpha.

Expense Ratio: 0.89

Average Trading Volume

The ETF's liquidity is low with an average trading volume of 11,709 shares, potentially increasing trading costs.

Bid-Ask Spread

The bid-ask spread is approximately 0.10%, which is relatively wide for an ETF.

Market Environment Factors

Economic growth, interest rate changes, inflation expectations, and credit spreads significantly influence TFIF's performance. Its active management seeks to capitalize on these factors.

Growth Trajectory

The growth trajectory depends on its ability to deliver competitive risk-adjusted returns. Changes to strategy and holdings are frequent, reflecting its active management style.

Competitive Edge

TFIF's competitive edge lies in its dynamic asset allocation strategy, aiming to outperform passive fixed income ETFs. Its active management seeks to adapt to changing market conditions, potentially offering better risk-adjusted returns. However, this depends on the manager's ability to make accurate market forecasts and investment decisions. The ETF's smaller size allows for greater flexibility in its investments.

Volatility

Historical volatility should be analyzed relative to other fixed income ETFs and benchmarks. Being actively managed, it could show higher or lower volatility depending on its allocation choices.

Market Risk

Market risk encompasses interest rate risk, credit risk, and inflation risk. The ETF's dynamic allocation attempts to mitigate these risks but may not always succeed.

Ideal Investor Profile

The ideal investor is one seeking total returns in a dynamic strategy, and is comfortable with active management and potentially higher fees.

Market Risk

TFIF is suited for investors who believe in active management and are looking to enhance their fixed income returns and are willing to pay a higher expense ratio for the potential of outperformance.

The 3EDGE Dynamic Fixed Income ETF (TFIF) is actively managed, seeking total return through dynamic allocation across fixed income sectors. It is intended for investors who believe that active management could provide them with total returns to improve fixed income return potential. It has a relatively low market share. While its active strategy could potentially generate higher returns, it could also carry higher risk, higher expense ratios, and it depends greatly on the manager's skill to make accurate market forecasts and investment decisions. Therefore, investors should carefully analyze their risk tolerance and investment objectives before investing in TFIF.

Data Sources:

• ETF.com
• Morningstar
• 3EDGE Asset Management

Disclaimers:

The data and analysis provided are for informational purposes only and do not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Market share data is approximate and based on available information.