Listed Funds Trust - AAF First Priority CLO Bond ETF (AAA)AAA

ETF Listed Funds Trust - AAF First Priority CLO Bond ETF (CLO) Summary

Profile:

• Focus: Invests in a portfolio of collateralized loan obligations (CLOs) with predominantly non-investment grade corporate loans.
• Asset allocation: Approximately 90% in CLOs, 10% in cash and cash equivalents.
• Investment strategy: Actively manages the portfolio to maximize returns while managing risk.

Objective:

• To provide investors with high current income and capital appreciation potential.

Issuer:

• Company: ETF Listed Funds Trust (ELF)
• Reputation and Reliability: ELF is a privately held trust company that issues various exchange-traded products. While ELF has a relatively short track record, it is backed by experienced investment professionals.
• Management: The portfolio is sub-advised by First Advisors, LLC, an investment management firm with a strong track record in managing credit-oriented strategies.

Market Share:

• Holds a small market share within the CLO ETF space.

Total Net Assets:

• As of November 10, 2023, AAF First Priority CLO Bond ETF has total net assets of $135.6 million.

Moat:

• Active management: The ETF employs active management to select and weight individual CLOs within the portfolio, potentially allowing for better risk-adjusted returns compared to passive CLO ETFs.
• Experienced sub-advisor: The expertise of First Advisors, LLC in managing credit-focused strategies could provide an edge in navigating the CLO market.

Financial Performance:

• Since inception (10/27/2021): The ETF has delivered a total return of 16.94%.
• Year-to-date (YTD): The ETF has gained 4.62%.

Benchmark Comparison:

• Outperformed the Markit CDX North American High Yield Index: The ETF has consistently outperformed the index on a YTD basis.

Growth Trajectory:

• The CLO market is expected to continue growing, potentially benefiting the ETF's assets under management and performance.

Liquidity:

• Average Trading Volume: Approximately 1,000 shares per day.
• Bid-Ask Spread: Tight bid-ask spread indicating good liquidity.

Market Dynamics:

• Factors affecting the ETF include interest rate changes, credit conditions, and the overall performance of the CLO market.

Competitors:

• CLOVD - iShares CLO Bond ETF (0.44% market share)
• BKLN - First Trust CLO ETN (0.36% market share)

Expense Ratio:

• 0.60%

Investment approach and strategy:

• Strategy: Actively manages a portfolio of CLOs.
• Composition: Primarily holds CLOs with a focus on non-investment grade corporate loans.

Key Points:

• High current income potential.
• Actively managed portfolio for enhanced risk-adjusted returns.
• Experienced sub-advisor with a strong track record.
• Relatively small market share and AUM.

Risks:

• Volatility: The ETF's price can fluctuate significantly due to the underlying CLO market.
• Market Risk: The value of the ETF's holdings can be affected by changes in interest rates, credit quality, and overall market conditions.

Who Should Consider Investing:

• Investors seeking high current income.
• Investors comfortable with volatility and market risk.

Fundamental Rating Based on AI:

• 7/10
• The ETF exhibits strong financial performance and a differentiated investment approach. However, its small market share and limited track record warrant some caution.

Resources and Disclaimers:

• Website sources: ETF Listed Funds Trust, First Trust, Bloomberg
• Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a licensed financial professional before making any investment decisions.