Angel Oak High Yield Opportunities ETF (AOHY)

Overview

The Angel Oak High Yield Opportunities ETF (ANGL) is an actively managed ETF focused on investing in a portfolio of high-yield corporate bonds and other fixed-income securities. It aims to generate income while managing credit risk through rigorous credit analysis and security selection.

Reputation and Reliability

Angel Oak Capital Advisors is an investment management firm specializing in fixed income and alternative credit investments. While not as widely known as some larger firms, they have a solid reputation for credit expertise.

Management Expertise

The management team has experience in credit analysis, portfolio management, and fixed-income investing, leveraging their expertise to navigate the high-yield market.

Goal

The ETF aims to provide current income and, secondarily, capital appreciation by investing in high-yield corporate debt securities.

Investment Approach and Strategy

Strategy: The ETF is actively managed and does not track a specific index. The portfolio managers select securities based on their creditworthiness and income potential.

Composition The ETF primarily holds high-yield corporate bonds, but may also include other fixed-income securities, such as senior loans and collateralized loan obligations (CLOs).

Market Share: ANGL's market share within the high yield bond ETF space is relatively small compared to the largest players.

Total Net Assets (AUM): 116808711

Key Competitors

• iShares iBoxx High Yield Corporate Bond ETF (HYG)
• SPDR Bloomberg High Yield Bond ETF (JNK)
• VanEck High Yield Muni ETF (HYD)

Competitive Landscape

The high-yield bond ETF market is dominated by a few very large ETFs. ANGL differentiates itself through its active management and specialized focus on credit analysis, which may allow it to outperform passive index trackers. However, active management also comes with higher fees, and there is no guarantee of outperformance. JNK and HYG have significant benefits from economies of scale.

Historical Performance: Historical performance data is readily available from various financial data providers. This data allows investors to review the ETFu2019s performance over different time periods to understand its track record.

Benchmark Comparison: The ETF's performance should be compared to a high-yield bond index, such as the Bloomberg Barclays U.S. Corporate High Yield Bond Index, to assess its effectiveness.

Expense Ratio: 0.55

Average Trading Volume

The ETF exhibits moderate liquidity, with an average daily trading volume of around 70,000 shares.

Bid-Ask Spread

The bid-ask spread is generally reasonable, typically ranging from $0.01 to $0.03, but can widen during periods of market volatility.

Market Environment Factors

Economic growth, interest rates, and credit spreads all impact the performance of high-yield bonds. Market sentiment and investor risk appetite also play a role.

Growth Trajectory

The ETF's growth is dependent on its ability to attract assets and generate positive returns. Future changes in the portfolio's strategy and holdings may occur as market conditions evolve.

Competitive Edge

ANGL's active management strategy provides a competitive edge by allowing the portfolio managers to select individual securities they believe offer the best risk-adjusted returns. The specialized credit analysis and security selection processes differentiate it from passive index-tracking ETFs. This active approach may allow the fund to avoid potential defaults and capture opportunities in the high-yield market. However, active management does not guarantee outperformance, and comes with higher fees.

Volatility

High-yield bonds are generally more volatile than investment-grade bonds. The ETF's historical volatility will reflect the risk inherent in its underlying holdings.

Market Risk

The ETF is exposed to market risk, credit risk (the risk of default by issuers), and interest rate risk. Changes in these factors can impact the ETF's value.

Ideal Investor Profile

The ETF is suitable for investors seeking income and are willing to take on higher levels of risk. Investors should have a moderate to high risk tolerance.

Market Risk

The ETF is suitable for long-term investors seeking income. It is not suitable for those seeking short-term gains or for investors with a low risk tolerance.

Angel Oak High Yield Opportunities ETF (ANGL) offers exposure to high-yield corporate bonds through an actively managed approach. The ETF's competitive edge lies in its specialized credit analysis and security selection processes, which differentiate it from passive index-tracking ETFs. However, it has higher fees than passive funds. The Fund is appropriate for investors with a high risk tolerance looking for income.

• HYG
• JNK
• SPHY
• HIX
• ANGL

Data Sources:

• etf.com
• morningstar.com
• yahoofinance.com
• sec.gov
• angeloakcapital.com

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investors should consult with a financial advisor before making any investment decisions. Market share data may be based on the most recently available information and may not be exact. Performance data is historical and not indicative of future results.