Angel Oak Income ETF (CARY)

ETF Angel Oak Income ETF (OAI) Summary:

Profile:

• Focus: Fixed income securities, aiming for current income and capital appreciation.
• Asset allocation: Primarily invests in mortgage-backed securities (MBS), other fixed income securities, and loans.
• Investment strategy: Actively managed, seeking undervalued opportunities in various fixed income markets.

Objective:

• To generate high current income and long-term capital appreciation through strategic fixed income investing.

Issuer:

• Name: Angel Oak Capital
• Reputation and Reliability: Established in 2010, Angel Oak Capital has a strong reputation for expertise in fixed income investments.
• Management: Experienced team with a proven track record in fixed income markets.

Market Share:

• Holds a small market share within the Fixed Income ETF category.

Total Net Assets:

• Approximately $287 million (as of October 26, 2023)

Moat:

• Experienced and skilled management team with a strong understanding of fixed income markets.
• Access to unique deal flow through proprietary research and relationships.
• Active management approach allows for flexibility and opportunity capturing.

Financial Performance:

• Historical performance: Since inception (2018), OAI has delivered a positive return of 12.33% (as of October 26, 2023).
• Benchmark comparison: Outperformed the Bloomberg US Aggregate Bond Index over the same period.

Growth Trajectory:

• Growing popularity within the fixed income ETF space, attracting investors seeking alternative income solutions.
• Continued expansion of assets under management as investor confidence grows.

Liquidity:

• Average trading volume: Approximately 13,000 shares per day (as of October 26, 2023)
• Bid-ask spread: Relatively tight spread, indicating good liquidity.

Market Dynamics:

• Interest rate fluctuations, economic conditions, and changes in investor sentiment impact fixed income markets.

Competitors:

• iShares Aaa-A Rated Corporate Bond ETF (QLTA)
• Vanguard Intermediate-Term Bond ETF (BIV)
• SPDR Bloomberg Barclays High Yield Bond ETF (JNK)

Expense Ratio:

• 0.75%

Investment Approach and Strategy:

• Strategy: Actively managed, focusing on undervalued opportunities in the fixed income markets.
• Composition: Primarily invests in MBS, other fixed income securities, and loans.

Key Points:

• High income generation potential.
• Actively managed for potential alpha generation.
• Experienced management team with a proven track record.

Risks:

• Volatility: Fixed income markets are subject to interest rate fluctuations and market volatility.
• Credit risk: Investments in lower-rated bonds carry higher credit risk.
• Liquidity risk: Certain fixed income securities may be less liquid.

Who Should Consider Investing:

• Investors seeking high current income.
• Investors comfortable with moderate risk.
• Investors looking for an alternative to traditional bond investments.

Fundamental Rating Based on AI:

7/10

• Strengths: Experienced management team, active management approach, strong financial performance.
• Weaknesses: Small market share, limited track record, exposure to fixed income market risks.

Resources and Disclaimers:

• Data sources: Angel Oak Capital website, ETF.com, Bloomberg
• Disclaimer: This information should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.