Angel Oak UltraShort Income ETF (UYLD)

Overview

The Angel Oak UltraShort Income ETF (ANGL) seeks to provide current income while preserving capital by investing primarily in a diversified portfolio of ultra-short-term investment-grade credit instruments, including asset-backed securities, mortgage-backed securities, and corporate bonds.

Reputation and Reliability

Angel Oak Capital Advisors is a well-regarded firm specializing in fixed income investments, particularly in the non-agency mortgage-backed securities sector. They have a solid track record and are known for their expertise in credit analysis.

Management Expertise

The management team has extensive experience in fixed income markets, structured credit, and portfolio management. They leverage their deep knowledge to navigate the complexities of the ultra-short-term credit market.

Goal

The ETF aims to provide current income with a focus on capital preservation.

Investment Approach and Strategy

Strategy: The ETF employs an active management strategy, selecting securities based on rigorous credit analysis and relative value assessments. It does not track a specific index.

Composition The ETF primarily holds a diversified portfolio of ultra-short-term investment-grade credit securities, including asset-backed securities (ABS), mortgage-backed securities (MBS), and corporate bonds.

Market Share: ANGL's market share within the ultra-short bond ETF category is moderate, reflecting a competitive landscape.

Total Net Assets (AUM): 154448831

Key Competitors

• PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT)
• iShares Short Maturity Bond ETF (NEAR)
• SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL)

Competitive Landscape

The ultra-short bond ETF market is dominated by a few large players like MINT and BIL. ANGL differentiates itself through active management and focus on structured credit. ANGL offers the potential for higher yield but also carries slightly higher credit risk compared to more passively managed or treasury-focused ETFs.

Historical Performance: Historical performance varies depending on market conditions and credit spreads. It typically aims to outperform money market funds and cash equivalents while maintaining low volatility.

Benchmark Comparison: The ETF's performance is often compared to benchmarks like the ICE BofA 1-3 Year US Corporate Index, although its ultra-short duration makes direct comparisons challenging.

Expense Ratio: 0.2

Average Trading Volume

The average daily trading volume for ANGL is moderate, indicating sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for ANGL is generally tight, reflecting efficient trading and lower transaction costs.

Market Environment Factors

Economic growth, interest rate policies, and credit market conditions significantly influence ANGL's performance. Changes in the yield curve and credit spreads can impact returns.

Growth Trajectory

The ETF's growth depends on investor demand for short-term income and its ability to consistently deliver competitive yields. The fund's holdings and strategies might be adjusted based on market conditions.

Competitive Edge

ANGL's competitive advantage lies in its active management approach and expertise in structured credit, enabling it to potentially generate higher yields compared to passively managed ultra-short-term bond ETFs. Its focus on asset-backed and mortgage-backed securities within the investment-grade space distinguishes it. The fund's experienced management team contributes to its ability to navigate complex credit markets. However, this active management also introduces additional management risk.

Volatility

ANGL exhibits low volatility due to its ultra-short duration and focus on investment-grade securities.

Market Risk

The ETF is subject to credit risk (the risk of default by issuers), interest rate risk (although mitigated by its short duration), and liquidity risk (especially in times of market stress).

Ideal Investor Profile

ANGL is suitable for investors seeking current income, capital preservation, and low volatility. It is attractive to those who want to earn more than cash equivalents without taking on significant market risk.

Market Risk

This ETF is best for long-term investors seeking a stable income stream, as well as those looking for a short-term parking place for cash.

The Angel Oak UltraShort Income ETF (ANGL) offers a compelling option for investors prioritizing capital preservation and current income. Its actively managed approach and focus on ultra-short-term investment-grade credit securities distinguish it from passively managed alternatives. While it carries some credit and liquidity risks, its low volatility and potential for higher yields make it attractive for conservative investors. The fund's performance is influenced by market conditions, requiring investors to monitor interest rate movements and credit spreads. However, the active management may allow it to respond more quickly to changes in the market than a passively managed fund would be able to do.

Data Sources:

• ETF.com
• Morningstar
• Company Fact Sheet
• Seeking Alpha

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual financial circumstances and consultation with a qualified financial advisor. Market data is subject to change.