Angel Oak Mortgage-Backed Securities ETF (MBS)

Overview

The Angel Oak Mortgage-Backed Securities ETF (ticker symbol) seeks to provide income and capital appreciation by investing primarily in a diversified portfolio of mortgage-backed securities (MBS), with a focus on residential mortgage-backed securities (RMBS). It aims to generate attractive yields through exposure to various MBS sectors and structures, managed with an active approach.

Reputation and Reliability

Angel Oak Capital Advisors is a specialized investment firm with a strong focus on credit strategies, particularly within the mortgage and fixed income markets. They are recognized for their expertise in navigating the complexities of mortgage-backed securities.

Management Expertise

The ETF is managed by Angel Oak Capital Advisors, a team with extensive experience in fixed-income investing, credit analysis, and mortgage market research. Their expertise is crucial for selecting and managing MBS, which can be complex instruments.

Goal

The primary investment goal of the Angel Oak Mortgage-Backed Securities ETF is to generate current income for its shareholders while also seeking to preserve capital.

Investment Approach and Strategy

Strategy: The ETF does not aim to track a specific index. Instead, it employs an active management strategy, seeking to identify mispriced or undervalued mortgage-backed securities across various sectors and maturities to enhance returns.

Composition The ETF primarily holds mortgage-backed securities, including Residential Mortgage-Backed Securities (RMBS) and potentially Commercial Mortgage-Backed Securities (CMBS). It may also invest in other fixed-income instruments related to the mortgage market.

Market Share: As of recent data, the ETF Angel Oak Mortgage-Backed Securities ETF holds a niche position within the broader fixed-income ETF market, with specific market share figures fluctuating. Detailed market share data for this specific ETF within the MBS ETF segment is not readily available in a standardized public format for precise calculation.

Total Net Assets (AUM): 277970000

Key Competitors

• iShares MBS ETF (MBB)
• Vanguard Mortgage-Backed Securities ETF (VMBS)
• Invesco Mortgage-Backed Securities ETF (PGX)

Competitive Landscape

The mortgage-backed securities ETF market is competitive, dominated by larger players with broader product offerings. Angel Oak Mortgage-Backed Securities ETF's advantage lies in its specialized focus and active management approach, potentially allowing for greater flexibility in security selection compared to passive index-tracking ETFs. However, its smaller AUM might lead to lower liquidity and potentially higher bid-ask spreads compared to its larger competitors.

Historical Performance: Historical performance data for Angel Oak Mortgage-Backed Securities ETF shows varied returns across different time periods. As of recent data, 1-year returns have been X%, 3-year annualized returns have been Y%, and 5-year annualized returns have been Z%. (Note: Specific numerical data requires up-to-date market data.)

Benchmark Comparison: The ETF's performance is typically compared against relevant MBS indices, such as the Bloomberg U.S. Aggregate Bond Index or specific MBS sub-indices. Its active management aims to outperform these benchmarks, though results can vary.

Expense Ratio: 0.62

Average Trading Volume

The average daily trading volume for the Angel Oak Mortgage-Backed Securities ETF is moderate, indicating sufficient liquidity for most retail investors.

Bid-Ask Spread

The bid-ask spread for the ETF is generally competitive, reflecting its trading activity and the liquidity of its underlying holdings.

Market Environment Factors

The ETF is significantly influenced by interest rate movements, as rising rates can negatively impact bond prices, including MBS. Economic indicators such as housing market health, inflation, and Federal Reserve policy are crucial. The MBS market's specific characteristics, such as prepayment risk, also play a vital role.

Growth Trajectory

The ETF's growth trajectory is tied to the broader interest in MBS as an income-generating asset class and the firm's ability to consistently deliver on its active management strategy. Changes in holdings reflect adjustments to market conditions and management's outlook on specific MBS sectors.

Competitive Edge

Angel Oak Mortgage-Backed Securities ETF's competitive edge stems from its specialized focus on the mortgage-backed securities market, an area where the issuer, Angel Oak Capital Advisors, possesses deep expertise. Their active management approach allows for strategic security selection and risk management tailored to the unique characteristics of MBS, potentially offering opportunities for enhanced yield and capital appreciation beyond passively managed funds. This niche focus can be advantageous in capturing specific market inefficiencies.

Volatility

The ETF exhibits moderate volatility, influenced by the inherent interest rate sensitivity of its underlying mortgage-backed securities. Its historical volatility metrics (e.g., standard deviation) provide a quantitative measure of its price fluctuations.

Market Risk

Key market risks include interest rate risk (rising rates decrease bond values), prepayment risk (borrowers refinancing or selling homes can alter expected cash flows), credit risk (default on underlying mortgages), and liquidity risk (difficulty selling securities quickly without impacting price).

Ideal Investor Profile

The ideal investor for the Angel Oak Mortgage-Backed Securities ETF is one seeking income generation from their fixed-income portfolio, with a moderate risk tolerance and an understanding of the complexities and risks associated with mortgage-backed securities.

Market Risk

This ETF is best suited for long-term investors who are comfortable with the income and capital appreciation potential of mortgage-backed securities and are looking for actively managed exposure to this specific market segment.

The Angel Oak Mortgage-Backed Securities ETF offers actively managed exposure to mortgage-backed securities with a goal of income generation. Its specialized focus and management expertise are key differentiators in a competitive market. Investors should be aware of interest rate and prepayment risks inherent in MBS. The ETF aims to provide a yield advantage through strategic security selection, making it suitable for income-seeking investors with a moderate risk profile.

Data Sources:

• Angel Oak Capital Advisors Official Website
• Financial Data Aggregators (e.g., Morningstar, ETF.com)

Disclaimers:

This JSON output is based on publicly available information and general market knowledge. It is not financial advice. Past performance is not indicative of future results. Investors should conduct their own due diligence and consult with a financial advisor before making investment decisions. Specific numerical data for performance and AUM may vary based on real-time market fluctuations and data source. Market share data is an estimation based on available information within the MBS ETF segment.