F/m Opportunistic Income ETF (XFIX)

Overview

The F/m Investments Opportunistic Income ETF (OXLC) is an actively managed fund focused on generating high current income by investing in collateralized loan obligations (CLOs) and other credit-related instruments. It aims to provide a higher yield than traditional fixed income investments.

Reputation and Reliability

F/m Investments is a smaller ETF issuer. Their reputation is still developing in the market, and their reliability depends on their ability to execute their investment strategy consistently.

Management Expertise

The management team has experience in credit markets and structured finance, specifically with CLOs, which is critical for managing this type of fund.

Goal

The primary investment goal of OXLC is to seek high current income.

Investment Approach and Strategy

Strategy: OXLC does not track a specific index; it is actively managed to identify and invest in attractive CLO tranches and other credit-related assets.

Composition The ETF primarily holds collateralized loan obligations (CLOs), focusing on equity and junior debt tranches. It may also hold other credit-related instruments.

Market Share: OXLC's market share within the CLO ETF market is significant, but it's a niche space.

Total Net Assets (AUM): 796753088

Key Competitors

• EIC (Eagle Point Credit Company Inc.)
• ECC (Eagle Point Credit Company Inc 6.75% Notes Due 2027)

Competitive Landscape

The competitive landscape is relatively concentrated with a few key players focusing on CLOs. OXLC distinguishes itself through its active management and specific investment approach within the CLO market. Its active management approach can be an advantage if successful, but a disadvantage if the manager fails to beat the market.

Historical Performance: Historical performance varies significantly depending on the credit market conditions. Past performance is not indicative of future results.

Benchmark Comparison: There is no specific benchmark for OXLC due to its unique investment strategy. Performance should be compared to other high-yield and credit-focused strategies.

Expense Ratio: 0.85

Average Trading Volume

OXLC's average daily trading volume is moderate, which could affect trade execution costs for larger orders.

Bid-Ask Spread

The bid-ask spread can vary depending on market conditions but is generally manageable for most investors.

Market Environment Factors

OXLC's performance is highly sensitive to economic growth, interest rate movements, and credit market conditions. Changes in regulations can also affect CLO market.

Growth Trajectory

OXLC's growth trajectory depends on its ability to attract assets and generate consistent returns. Changes in the underlying CLO market could also impact its growth.

Competitive Edge

OXLC's competitive advantages include its focused investment strategy in CLOs and active management approach. This specialization allows it to potentially identify undervalued opportunities within the CLO market. The fund's ability to navigate the complex CLO structure and select specific tranches based on their risk-reward profile sets it apart from broader high-yield funds. However, this also makes it reliant on the management team's expertise.

Volatility

OXLC exhibits high volatility due to the leveraged nature of CLOs and sensitivity to credit market conditions. The volatility is higher than typical fixed-income ETFs.

Market Risk

OXLC is exposed to market risk, including credit risk (risk of default by underlying loan borrowers) and interest rate risk (risk of declining CLO values due to rising interest rates).

Ideal Investor Profile

OXLC is suitable for sophisticated investors who understand the complexities of CLOs and are seeking high current income with a higher risk tolerance.

Market Risk

OXLC is more suitable for active traders or investors with a longer-term outlook who are comfortable with significant volatility and potential for capital loss.

OXLC is an actively managed ETF investing primarily in CLOs to generate high current income. It is suitable for sophisticated investors who have a high risk tolerance and understand CLOs' intricacies. The fund's performance is closely tied to the credit market conditions and the manager's ability to navigate the CLO market. It is exposed to credit risk, interest rate risk, and high volatility. Due diligence and thorough research are crucial before investing in OXLC.

Data Sources:

• F/m Investments website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investors should consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. Risk of capital loss is possible.