Fieldstone UVA Unconstrained Medium-Term Fixed Income ETF (FFIU)

ETF Fieldstone UVA Unconstrained Medium-Term Fixed Income ETF (FUV)

Profile:

FUV is an actively managed ETF that invests in a diversified portfolio of mostly investment-grade U.S. dollar-denominated fixed income securities with maturities of 1 to 10 years. The ETF aims to achieve a high level of current income and capital appreciation through a flexible and unconstrained approach.

Objective:

The primary objective of FUV is to seek to maximize total return through a combination of current income and capital appreciation.

Issuer:

FUV is issued by Fieldstone UVA Investment Management, a subsidiary of Tortoise Capital Advisors, LLC.

• Reputation and Reliability: Fieldstone has been managing fixed income portfolios for institutional investors since 2006. Tortoise Capital Advisors, LLC has a strong reputation in the asset management industry with over $18 billion in assets under management (as of 2023).
• Management: The portfolio is managed by a team of experienced fixed income professionals led by Steven Jon Kaplan, CFA, who has over 20 years of experience in the industry.

Market Share:

FUV has a relatively small market share in the medium-term fixed income ETF space. However, it has experienced strong growth since its inception in 2022.

Total Net Assets:

As of October 27, 2023, FUV has approximately $1.25 billion in total net assets.

Moat:

• Unconstrained Approach: FUV's unconstrained approach allows the portfolio managers to invest in a wider range of fixed income securities, including those with lower credit ratings, which may offer higher potential returns.
• Active Management: The portfolio is actively managed by an experienced team of fixed income professionals, which allows for greater flexibility and the potential to outperform the market.
• Niche Focus: FUV focuses on the medium-term fixed income space, which is a relatively underserved market segment.

Financial Performance:

Since its inception in February 2022, FUV has outperformed its benchmark, the Bloomberg US Aggregate Bond Index. However, it is important to note that the ETF has a relatively short track record.

Growth Trajectory:

Given the ETF's strong performance and growing assets under management, it is expected to experience continued growth in the future.

Liquidity:

FUV has a moderate average trading volume, which indicates decent liquidity.

Bid-Ask Spread:

The bid-ask spread for FUV is relatively tight, indicating that the ETF is relatively easy to buy and sell.

Market Dynamics:

The fixed income market is currently facing several headwinds, including rising interest rates and inflation. However, the medium-term fixed income space is expected to be relatively resilient in this environment.

Competitors:

• PIMCO Intermediate Bond Index Fund (MINT): 4.5% market share
• iShares Aaa-A Rated Corporate Bond ETF (QLTA): 3.8% market share
• Vanguard Intermediate-Term Corporate Bond ETF (VCIT): 3.5% market share

Expense Ratio:

FUV has an expense ratio of 0.65%.

Investment Approach and Strategy:

• Strategy: FUV does not track a specific benchmark. Instead, it actively manages its portfolio to achieve its investment objective.
• Composition: The portfolio primarily invests in U.S. dollar-denominated fixed income securities with maturities of 1 to 10 years.

Key Points:

• Actively managed ETF with an unconstrained approach.
• Focuses on medium-term fixed income securities.
• Strong performance since inception.
• Moderate liquidity and expense ratio.

Risks:

• Volatility: Fixed income securities can be volatile, especially in a rising interest rate environment.
• Market Risk: The value of the ETF's holdings can decline if interest rates rise or the creditworthiness of the issuers deteriorates.
• Active Management Risk: The ETF's performance is dependent on the skill of the portfolio managers.

Who Should Consider Investing:

FUV is suitable for investors who are looking for a high level of current income and capital appreciation from a diversified portfolio of medium-term fixed income securities. Investors should be comfortable with the risks associated with fixed income investing and the potential for volatility.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, FUV receives a 7 out of 10 rating. The ETF benefits from a strong management team, an unconstrained approach, and a niche focus. However, it has a relatively short track record and is exposed to the risks of the fixed income market.

Resources and Disclaimers:

• Fieldstone UVA Unconstrained Medium-Term Fixed Income ETF website: https://www.fieldstoneuva.com/etfs/f-uv
• Bloomberg Terminal
• ETF.com

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.