3EDGE Dynamic Fixed Income ETF (EDGF)

Overview

The 3EDGE Dynamic Fixed Income ETF (TFIF) is an actively managed fund seeking total return by dynamically allocating across fixed income asset classes. It aims to navigate changing market conditions and interest rate environments by adjusting its portfolio composition.

Reputation and Reliability

3EDGE Asset Management is a boutique investment firm. Their reputation is based on their dynamic allocation strategies.

Management Expertise

The management team at 3EDGE has experience in asset allocation and fixed income markets.

Goal

The ETF's primary investment goal is to generate total return through dynamic allocation across various fixed income sectors.

Investment Approach and Strategy

Strategy: TFIF is an actively managed ETF that does not track a specific index. Its strategy involves adjusting asset allocations based on macroeconomic analysis and market conditions.

Composition The ETF invests in a variety of fixed income securities, including government bonds, corporate bonds, mortgage-backed securities, and high-yield bonds. The allocations change over time.

Market Share: Market share data for this specific actively managed ETF is difficult to ascertain precisely. It has a niche position.

Total Net Assets (AUM): 61400000

Key Competitors

• AGGY
• BND
• AGG
• SCHZ

Competitive Landscape

The fixed income ETF market is highly competitive, dominated by large, passively managed ETFs like AGG and BND. TFIF differentiates itself through its active management and dynamic allocation strategy, potentially offering higher returns in certain market environments, but also carrying higher risk due to management decisions. Its active management can offer an advantage, however, the AUM is significantly less than the biggest competitors, which makes it less liquid.

Historical Performance: Historical financial performance data should be analyzed to determine how the ETF has performed across different market conditions.

Benchmark Comparison: The ETF's performance should be compared to a broad fixed income benchmark, such as the Bloomberg Barclays U.S. Aggregate Bond Index, to evaluate its effectiveness.

Expense Ratio: 0.99

Average Trading Volume

The average trading volume for TFIF is relatively low compared to larger fixed income ETFs, indicating lower liquidity.

Bid-Ask Spread

The bid-ask spread can fluctuate, with wider spreads generally indicating lower liquidity and higher trading costs.

Market Environment Factors

Economic indicators such as interest rates, inflation, and GDP growth, as well as sector-specific trends and market sentiment, influence TFIF's performance.

Growth Trajectory

TFIF's growth depends on its ability to attract investors seeking actively managed fixed income exposure. Changes to the ETF's strategy and holdings can affect its performance and appeal.

Competitive Edge

TFIFu2019s competitive edge lies in its dynamic asset allocation, aiming to outperform static fixed income benchmarks. Its active management allows for flexibility to adjust the portfolio based on changing macroeconomic conditions. The management teamu2019s expertise in fixed income markets contributes to its ability to identify and capitalize on opportunities. However, active management also introduces the risk of underperformance compared to passive strategies. Finally, the fund's smaller size can hinder trading strategies compared to other larger ETFs in the same sector.

Volatility

TFIF's volatility can vary depending on its asset allocation and market conditions. Active management could potentially lead to higher volatility compared to passive funds.

Market Risk

The specific risks associated with TFIF's underlying assets depend on the types of fixed income securities it holds, including interest rate risk, credit risk, and inflation risk.

Ideal Investor Profile

The ideal investor for TFIF is someone seeking active management in the fixed income space, willing to accept higher fees for the potential of outperformance, and comfortable with dynamic asset allocation.

Market Risk

TFIF might be more suitable for investors seeking tactical fixed income exposure and are willing to pay for active management, rather than passive index followers.

TFIF is an actively managed fixed income ETF that seeks total return through dynamic asset allocation. Its active management provides the potential for outperformance but also introduces higher fees and management-related risks. The ETF's success depends on the management team's ability to effectively navigate changing market conditions. Investors should carefully consider their risk tolerance and investment goals before investing in TFIF. Its smaller AUM compared to large fixed income ETFs may affect liquidity.

• AGG
• BND
• SCHZ
• AGGY
• MUB
• IEF

Data Sources:

• 3EDGE Asset Management Website
• ETF.com
• Morningstar
• YCharts
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and after consultation with a financial professional.