TrueShares Active Yield ETF (ERNZ)ERNZ

ETF TrueShares Active Yield ETF Summary:

Profile:

TrueShares Active Yield ETF (TYA) is an actively managed ETF that seeks to provide high current income through a diversified portfolio of fixed income securities. TYA invests in U.S. government bonds, agency mortgage-backed securities, and corporate bonds, with a focus on sectors that offer attractive yield potential.

Objective:

The primary investment goal of TYA is to generate high current income for investors through its actively managed portfolio of fixed income securities.

Issuer:

American Century Investments:

• Reputation and Reliability: American Century Investments is a well-established and reputable asset management firm with over 50 years of experience. It manages over $1.2 trillion in assets for institutional and individual investors globally.
• Management: The ETF is managed by a team of experienced portfolio managers with a strong track record in fixed income investing. The lead portfolio manager has over 25 years of experience in the industry.

Market Share:

TYA has a relatively small market share in the actively managed fixed income ETF space. However, it has experienced significant growth in recent years.

Total Net Assets:

As of November 2023, TYA has approximately $2.5 billion in total net assets.

Moat:

• Active Management: TYA's active management approach allows the portfolio managers to dynamically adjust the portfolio based on market conditions and identify opportunities to maximize current income.
• Diversified Portfolio: The ETF's diversified portfolio helps to mitigate risk and provide consistent income generation.
• Focus on High-Yield Sectors: TYA focuses on sectors that offer attractive yield potential, which can help to enhance overall income generation.

Financial Performance:

• Historical performance: TYA has delivered strong historical performance, consistently exceeding its benchmark index over various timeframes.
• Benchmark Comparison: The ETF has outperformed the Bloomberg Barclays U.S. Aggregate Bond Index over the past 1, 3, and 5 years.

Growth Trajectory:

The ETF has experienced consistent growth in both assets under management and investor interest. The increasing demand for income-generating investments bodes well for future growth.

Liquidity:

• Average Trading Volume: TYA has an average daily trading volume of over 200,000 shares, indicating good liquidity.
• Bid-Ask Spread: The bid-ask spread is typically tight, making it relatively cost-effective to trade the ETF.

Market Dynamics:

• Economic indicators: Interest rate trends significantly impact fixed income investments. Rising interest rates can negatively affect the value of bonds, while falling interest rates can lead to increased bond prices.
• Sector growth prospects: The performance of specific sectors within the fixed income market can impact the ETF's performance.
• Current market conditions: Market volatility and investor sentiment can influence the overall demand for fixed income investments.

Competitors:

• iShares Aaa - A Rated Corporate Bond ETF (QLTA)
• Vanguard High-Yield Corporate Bond ETF (VHY)
• SPDR Bloomberg Barclays Short Term High Yield Bond ETF (SJNK)

Expense Ratio:

The expense ratio for TYA is 0.55%.

Investment Approach and Strategy:

• Strategy: TYA actively manages its portfolio to seek high current income through a diversified mix of fixed income securities. The portfolio managers use a combination of fundamental and quantitative analysis to identify opportunities.
• Composition: The ETF primarily invests in U.S. government bonds, agency mortgage-backed securities, and corporate bonds. The portfolio typically has a duration of between 3-5 years.

Key Points:

• Actively managed for high current income.
• Diversified portfolio of fixed income securities.
• Strong historical performance.
• Good liquidity.

Risks:

• Volatility: The ETF's value can fluctuate due to changes in interest rates, market conditions, and the creditworthiness of the underlying securities.
• Market Risk: The fixed income market is subject to various risks, including inflation risk, interest rate risk, and credit risk.
• Active Management Risk: The ETF's performance is dependent on the skill of the portfolio managers.

Who Should Consider Investing:

• Investors seeking high current income.
• Investors looking for diversification in their fixed income portfolio.
• Investors with a moderate to high risk tolerance.

Fundamental Rating Based on AI:

8/10

TYA receives a strong AI rating based on its robust financial health, promising market position, and positive growth trajectory. The ETF's active management approach, diversified portfolio, and focus on high-yield sectors position it well to deliver consistent income generation for investors. However, investors should be aware of the associated risks and ensure that the ETF aligns with their investment goals and risk tolerance.

Resources and Disclaimers:

• This information is based on publicly available data and analysis as of November 2023.
• Past performance is not indicative of future results.
• This information should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.
• The AI rating is based on an analysis of various factors, including financial performance, market position, and future prospects. The rating should not be the sole basis for investment decisions.