OneAscent Core Plus Bond ETF (OACP)

Overview

The OneAscent Core Plus Bond ETF (BOND) aims to provide investors with broad exposure to the U.S. investment-grade bond market, with an emphasis on a core plus strategy. This involves investing in a diversified portfolio of U.S. investment-grade government and corporate bonds, as well as potentially opportunistic allocations to higher-yielding sectors like high-yield bonds or emerging market debt, managed with a focus on capital preservation and income generation.

Reputation and Reliability

OneAscent is a relatively newer entrant in the ETF space, focusing on values-aligned investment strategies. Their reputation is built on providing financial advisory services, and their ETF offerings are an extension of this philosophy. Reliability is assessed through the operational efficiency and transparency of their fund management.

Management Expertise

The management team behind OneAscent ETFs typically comprises experienced professionals in fixed income and portfolio management, with a stated commitment to ESG (Environmental, Social, and Governance) principles. Their expertise lies in navigating the complexities of the bond market to achieve stated investment objectives.

Goal

The primary goal of the OneAscent Core Plus Bond ETF is to generate income and preserve capital for its investors by investing in a diversified portfolio of fixed-income securities.

Investment Approach and Strategy

Strategy: The ETF employs a 'core plus' investment strategy. This means it invests primarily in a core portfolio of U.S. investment-grade bonds (government and corporate) and then adds a 'plus' component, which can include a broader range of fixed income instruments such as high-yield bonds, emerging market debt, or other opportunistic credit exposures, seeking to enhance returns.

Composition The ETF's holdings are primarily composed of U.S. investment-grade corporate bonds and U.S. Treasury securities. The 'plus' component may introduce exposure to high-yield corporate bonds, emerging market debt, and potentially other fixed-income instruments. The specific allocation will vary based on market conditions and the fund manager's outlook.

Market Share: As of recent data, the OneAscent Core Plus Bond ETF holds a small but growing market share within the broad U.S. bond ETF sector. Specific percentage is proprietary and fluctuates.

Total Net Assets (AUM):

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 U.S. bond ETF market is highly competitive, dominated by large issuers like iShares, Vanguard, and SPDR, which offer broad market exposure at very low expense ratios. BOND competes by offering a core plus strategy and potentially aligning with investors seeking values-based or ESG-focused investments. Its disadvantages include a smaller AUM, potentially higher expense ratio compared to the largest competitors, and less established brand recognition. Its advantages lie in its specific 'plus' strategy for potential yield enhancement and its values-driven approach.

Historical Performance: Historical performance data for BOND needs to be analyzed over various periods (e.g., 1-year, 3-year, 5-year, since inception) to assess its track record relative to its objectives and benchmarks. Specific numerical data will vary and should be sourced from real-time financial data providers.

Benchmark Comparison: The ETF's performance is typically compared against a broad U.S. aggregate bond index. The 'core plus' nature may lead to deviations from a pure aggregate benchmark, with the potential for both outperformance and underperformance depending on the performance of the 'plus' assets.

Expense Ratio: 0.45

Average Trading Volume

The average trading volume for the OneAscent Core Plus Bond ETF is generally lower than that of the largest bond ETFs, indicating moderate liquidity.

Bid-Ask Spread

The bid-ask spread for BOND is typically wider than the most liquid bond ETFs, suggesting a slightly higher cost of entry and exit for active traders.

Market Environment Factors

Factors influencing BOND include interest rate movements, inflation expectations, credit market conditions, and investor sentiment towards riskier fixed-income assets. A rising interest rate environment generally negatively impacts bond prices, while inflation can erode real returns. Economic growth prospects also influence corporate bond performance.

Growth Trajectory

As a newer ETF, BOND is likely in a growth phase, aiming to attract assets and establish its market position. Changes in strategy and holdings would be driven by the fund manager's outlook on the fixed income markets and the evolving economic landscape, with a potential to adjust allocations within its core and plus segments.

Competitive Edge

The OneAscent Core Plus Bond ETF's competitive edge lies in its 'core plus' investment strategy, which aims to offer enhanced yield potential beyond a simple aggregate bond index. Furthermore, its affiliation with OneAscent suggests a potential appeal to investors seeking values-aligned or ESG-conscious investment options within the fixed income space. This differentiated approach allows it to target a specific niche of investors seeking both income and a values-based mandate.

Volatility

The historical volatility of the OneAscent Core Plus Bond ETF will be influenced by its allocation to higher-yielding, potentially riskier assets within the 'plus' portion of its portfolio. While generally considered less volatile than equity ETFs, it will exhibit more volatility than a pure U.S. Treasury ETF.

Market Risk

Specific market risks include interest rate risk (the risk that bond prices will fall as interest rates rise), credit risk (the risk that bond issuers will default on their payments), inflation risk (the risk that inflation erodes the purchasing power of bond returns), and liquidity risk (the risk of not being able to sell an asset quickly at a fair price, particularly relevant for less liquid 'plus' holdings).

Ideal Investor Profile

The ideal investor for the OneAscent Core Plus Bond ETF is one seeking income generation and capital preservation, with a moderate risk tolerance. They may also be an investor who values ESG principles or seeks to align their investments with specific values. Investors looking for diversification within their fixed-income portfolio and willing to accept slightly higher risk for potentially enhanced returns are also well-suited.

Market Risk

This ETF is generally best suited for long-term investors looking for a diversified income-generating component in their portfolio. It is less suitable for very short-term traders or those seeking aggressive capital appreciation, due to the nature of fixed-income investments and its moderate risk profile.

The OneAscent Core Plus Bond ETF (BOND) offers a 'core plus' strategy for income and capital preservation, blending investment-grade bonds with opportunistic credit. While its market share is modest, its competitive edge lies in its potential for enhanced yield and its alignment with values-based investing. Investors should be aware of interest rate, credit, and inflation risks, which are inherent in bond markets. BOND is best suited for long-term investors seeking diversified income with a moderate risk tolerance.

Data Sources:

• OneAscent Capital Management, LLC (ETF Issuer)
• Financial data providers (e.g., Morningstar, Bloomberg, ETF.com)

Disclaimers:

This information is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions. Data on market share, AUM, and specific holdings are subject to change and should be verified with real-time sources.