Angel Oak High Yield Opportunities ETF (AOHY)

Overview

The Angel Oak High Yield Opportunities ETF (ANGL) is an actively managed ETF that invests primarily in U.S. high-yield corporate bonds, also known as junk bonds. The fund seeks to generate current income and, secondarily, capital appreciation by investing in a diversified portfolio of high-yield debt securities. Asset allocation typically focuses on corporate bonds rated below investment grade.

Reputation and Reliability

Angel Oak Capital Advisors is an investment management firm specializing in fixed-income investments. They are known for their expertise in structured credit and mortgage-backed securities, but have expanded into other fixed-income strategies. They are a smaller, boutique firm but respected within their niche.

Management Expertise

The management team has extensive experience in high-yield credit markets and actively manages the portfolio to identify attractive investment opportunities and manage risk.

Goal

Seeks to generate current income with a secondary goal of capital appreciation.

Investment Approach and Strategy

Strategy: Actively managed, not tracking a specific index. The fund aims to outperform the high-yield bond market through security selection and sector allocation.

Composition Primarily invests in U.S. dollar-denominated high-yield corporate bonds. May also hold other fixed-income securities, including senior loans and other debt instruments.

Market Share: Difficult to accurately assess ANGL's exact market share within the high-yield ETF universe due to the actively managed nature and broader scope of high yield bond funds.

Total Net Assets (AUM): 388200000

Key Competitors

• iShares iBoxx High Yield Corporate Bond ETF (HYG)
• SPDR Bloomberg High Yield Bond ETF (JNK)
• VanEck Fallen Angel High Yield Bond ETF (ANGL)
• Xtrackers USD High Yield Corporate Bond ETF (HYLB)

Competitive Landscape

The high-yield ETF market is dominated by large, passively managed ETFs like HYG and JNK. ANGL differentiates itself through active management, which aims to outperform passive benchmarks. ANGL's advantage is potentially higher returns via active management, but it comes with higher expense ratios and the risk of underperformance. Passive ETFs offer lower costs but may not adapt as effectively to changing market conditions.

Historical Performance: Requires specific historical data from financial data providers; will populate with an array of performance data if available.

Benchmark Comparison: Requires specific historical data from financial data providers; will populate with comparison data if available.

Expense Ratio: 0.55

Average Trading Volume

The average daily trading volume of ANGL can vary, but it's generally lower than the larger, more established high-yield ETFs.

Bid-Ask Spread

The bid-ask spread for ANGL is typically wider than that of more liquid ETFs like HYG and JNK, reflecting its smaller size and lower trading volume.

Market Environment Factors

Economic growth, interest rate movements, credit spreads, and investor sentiment significantly impact the high-yield bond market and ANGL's performance. Credit cycles and default rates are also key factors.

Growth Trajectory

As an actively managed fund, ANGL's strategy and holdings can change over time in response to market conditions and the manager's outlook. Growth is contingent on the fund's performance and ability to attract assets.

Competitive Edge

ANGL's primary competitive advantage is its active management, allowing for flexibility in security selection and sector allocation to potentially outperform passive high-yield benchmarks. Angel Oak's expertise in credit markets provides a unique perspective on high-yield opportunities. The active management style allows for tactical adjustments to mitigate risk during periods of market stress. This contrasts with passive ETFs that simply track an index regardless of market conditions. However, active management is not a guarantee of outperformance.

Volatility

High-yield bonds are inherently more volatile than investment-grade bonds due to their lower credit ratings. ANGL's volatility will reflect the overall volatility of the high-yield market and the specific risks of its holdings.

Market Risk

ANGL is subject to market risk, credit risk (the risk of default by bond issuers), and interest rate risk (the risk that rising interest rates will decrease the value of the bonds). Liquidity risk is also present due to the potential difficulty in selling high-yield bonds during times of market stress.

Ideal Investor Profile

Investors seeking current income and willing to accept higher risk in exchange for potentially higher returns. Suitable for those who understand the risks associated with high-yield bonds and are comfortable with active management.

Market Risk

More suitable for long-term investors seeking income and capital appreciation, not ideal for active traders due to lower liquidity compared to larger ETFs.

Angel Oak High Yield Opportunities ETF (ANGL) is an actively managed high-yield bond ETF seeking current income and capital appreciation. Its active management approach aims to outperform passive benchmarks, but also results in higher expense ratio compared to its competitors. The fund is subject to market and credit risk but is suitable for investors willing to accept those risks for potentially higher returns. The fund's success hinges on the ability of its management to add value through active security selection.

Data Sources:

• ETF.com
• Morningstar
• Fund Fact Sheet
• Company Website
• Bloomberg

Disclaimers:

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