Neos ETF Trust - Neos Enhanced Income Credit Select ETF (HYBI)

Overview

The Neos Enhanced Income Credit Select ETF (CRED) seeks to provide current income while maintaining the opportunity for capital appreciation. It focuses on credit securities across various sectors and aims to enhance income through strategic security selection and risk management.

Reputation and Reliability

Neos is a relatively new ETF issuer focused on innovative investment strategies. Its reputation is still developing, but it aims to provide unique income solutions.

Management Expertise

Neos' management team comprises experienced professionals in credit markets and structured finance. They have a track record of managing income-generating portfolios.

Goal

To provide current income and the opportunity for capital appreciation by investing in a diversified portfolio of credit securities.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but employs active management to select credit securities. It focuses on identifying undervalued opportunities and managing risk.

Composition The ETF primarily holds corporate bonds, high-yield bonds, and other credit-related securities. The allocation can vary based on market conditions and investment opportunities.

Market Share: CRED is a niche player in the enhanced income credit ETF space, with a relatively small market share.

Total Net Assets (AUM): 111458912

Key Competitors

• PIMCO Enhanced Short Maturity Active ETF (MINT)
• iShares Broad USD Investment Grade Corporate Bond ETF (USIG)
• SPDR Portfolio High Yield Corporate Bond ETF (SPHY)

Competitive Landscape

The enhanced income credit ETF market is competitive, with several established players. CRED differentiates itself through its active management approach and focus on strategic security selection. Its disadvantage is its smaller size and newer track record compared to larger competitors. It's advantage is potential alpha generation through active management.

Historical Performance: Historical performance data is limited due to its recent inception. Reviewing the ETF's performance over the past year would provide more insight.

Benchmark Comparison: A relevant benchmark would be a broad credit market index or a composite of high-yield and investment-grade bond indices.

Expense Ratio: 0.68

Average Trading Volume

The average trading volume is moderate, and it depends on market conditions, influencing the ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread varies depending on trading volume and market liquidity; monitoring this spread is crucial for minimizing transaction costs.

Market Environment Factors

Economic growth, interest rate movements, and credit spreads significantly impact CRED's performance. Changes in credit market sentiment also affect the ETF.

Growth Trajectory

The ETF's growth trajectory depends on its ability to generate attractive risk-adjusted returns. The active management style and changes to portfolio holdings will influence the growth trend.

Competitive Edge

CRED's competitive edge lies in its active management strategy, allowing it to potentially outperform passively managed credit ETFs. The ETF's investment team's expertise in security selection and risk management is a key differentiator. By targeting undervalued credit opportunities, it aims to provide enhanced income and capital appreciation potential. The ability to adapt the portfolio to changing market conditions provides a strategic advantage. This active approach offers investors a potentially higher return profile than traditional passive credit ETFs.

Volatility

CRED's volatility is influenced by credit market conditions and the specific securities held in the portfolio. Higher-yielding credit securities generally exhibit greater volatility.

Market Risk

Specific risks include credit risk (the risk of default), interest rate risk (sensitivity to interest rate changes), and liquidity risk (difficulty in selling securities).

Ideal Investor Profile

CRED is suitable for investors seeking current income and capital appreciation potential from credit markets. Investors with a moderate risk tolerance and a need for income may find it appealing.

Market Risk

CRED is best for long-term investors and investors who wants to actively manage the portfolio.

The Neos Enhanced Income Credit Select ETF (CRED) is an actively managed ETF focused on generating income through credit securities. Its active management approach differentiates it from passive alternatives, allowing for strategic security selection and risk management. Investors should consider the ETF's expense ratio, credit risk, and interest rate sensitivity. It caters to income-seeking investors with a moderate risk tolerance and who prefer active portfolio management. It's a relatively new ETF, the information is subject to change, therefore the rating provided might be slightly incorrect.

Data Sources:

• Neos ETF Trust Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Market conditions and fund strategies may change over time.