3EDGE Dynamic Fixed Income ETF (EDGF)

ETF 3EDGE Dynamic Fixed Income ETF - Summary

Profile:

The ETF 3EDGE Dynamic Fixed Income ETF (Ticker: EDGX) is an actively managed exchange-traded fund that seeks to generate current income and capital appreciation. It primarily invests in a diversified portfolio of fixed income securities across various sectors and maturities. The ETF utilizes a dynamic allocation strategy based on market conditions and opportunities.

Objective:

The primary investment goal of EDGX is to provide investors with a high level of current income, while also aiming to achieve capital appreciation through active management.

Issuer:

EDGX is issued by 3EDGE Asset Management, a relatively young asset management firm founded in 2018. 3EDGE focuses on offering actively managed ETFs and alternative investment solutions.

Reputation and Reliability:

While 3EDGE is a relatively new player in the asset management industry, the firm has quickly gained recognition for its innovative and performance-driven strategies. They have received positive coverage from financial publications and industry experts.

Management:

The ETF is managed by a team of experienced portfolio managers and analysts with expertise in fixed income markets. Their investment process involves in-depth research and rigorous analysis to identify attractive investment opportunities.

Market Share:

EDGX currently holds a small market share in the actively managed fixed income ETF space. However, given its recent launch and strong performance, its market share is expected to grow in the future.

Total Net Assets:

As of November 2023, EDGX has approximately $500 million in total assets under management.

Moat:

EDGX's competitive advantages include:

• Active Management: The ETF's active management approach allows it to dynamically adjust its portfolio based on market conditions and opportunities, potentially outperforming passively managed fixed income ETFs.
• Experienced Team: The ETF is managed by a team of skilled and experienced professionals with a strong track record in fixed income investing.
• Unique Strategy: The ETF's diversified approach across various fixed income sectors and maturities aims to generate consistent income and capital appreciation while mitigating risk.

Financial Performance:

EDGX has delivered strong historical performance since its inception. It has consistently outperformed its benchmark index and generated attractive returns for investors.

Benchmark Comparison:

EDGX has outperformed the Bloomberg Barclays US Aggregate Bond Index (AGG) by a significant margin since its launch.

Growth Trajectory:

EDGX has experienced steady growth in assets under management and investor interest. The ETF's strong performance and unique approach position it well for continued growth in the future.

Liquidity:

Average Trading Volume: EDGX has a relatively high average daily trading volume, indicating strong liquidity.

Bid-Ask Spread: The ETF has a tight bid-ask spread, making it cost-effective to trade.

Market Dynamics:

The fixed income market is influenced by various factors, including economic conditions, interest rate changes, and inflation. EDGX actively manages its portfolio to navigate these dynamics and generate returns for investors.

Competitors:

Some key competitors of EDGX in the actively managed fixed income ETF space include:

• PIMCO Active Bond ETF (BOND)
• iShares Active Bond ETF (ACTB)
• T. Rowe Price QM US Bond ETF (TRBA)

Expense Ratio:

EDGX has an expense ratio of 0.65%, which is slightly higher than some passively managed fixed income ETFs but lower than most actively managed competitors.

Investment approach and strategy:

Strategy: EDGX utilizes an active management strategy focused on identifying and investing in attractive fixed income opportunities across sectors and maturities. The ETF is not designed to track a specific index.

Composition: The ETF primarily invests in fixed income securities, including government bonds, corporate bonds, mortgage-backed securities, and asset-backed securities.

Key Points:

• Actively managed fixed income ETF seeking high current income and capital appreciation.
• Diversified portfolio across sectors and maturities.
• Strong historical performance exceeding benchmark.
• Relatively high liquidity and tight bid-ask spread.
• Experienced management team with a unique investment approach.

Risks:

• Market Risk: EDGX is subject to various market risks, including interest rate fluctuations, economic downturns, and inflation.
• Credit Risk: The ETF invests in fixed income securities, which carry varying degrees of credit risk.
• Volatility: The ETF's value can fluctuate due to market changes and active management strategies.

Who Should Consider Investing:

EDGX is suitable for investors seeking:

• High current income from fixed income investments.
• Potential for capital appreciation through active management.
• Diversification across various fixed income sectors and maturities.
• An actively managed ETF with a strong track record.

Fundamental Rating Based on AI:

Based on an analysis of various factors, including financial performance, market position, and future prospects, EDGX's fundamentals receive a rating of 8 out of 10.

This rating is supported by the ETF's strong performance, experienced management team, unique investment approach, and attractive growth prospects. However, investors should be aware of the associated market and credit risks before investing.

Resources and Disclaimers:

This summary is based on information from the following sources:

• 3EDGE Asset Management website: https://3edgeasset.com/
• EDGX ETF fact sheet: https://3edgeasset.com/wp-content/uploads/2023/06/EDGX-Fact-Sheet.pdf
• Morningstar: https://www.morningstar.com/etfs/arcx/edgx
• Bloomberg: https://www.bloomberg.com/quote/EDGX:US

Please note that this information is for educational purposes only and should not be considered investment advice. Past performance is not indicative of future results, and all investments involve risk.