Angel Oak Mortgage-Backed Securities ETF (MBS)

Overview

The Angel Oak Mortgage-Backed Securities ETF (NYSEARCA: ANGL) seeks to provide current income by investing primarily in non-agency mortgage-backed securities. It focuses on securities not guaranteed by government agencies, offering higher yields but with increased credit risk. The ETF aims for a diversified portfolio within the mortgage-backed securities market.

Reputation and Reliability

Angel Oak Capital Advisors is a specialist in mortgage credit, known for its expertise in the non-agency MBS market. Their reputation is built on deep market knowledge and active management.

Management Expertise

The management team possesses extensive experience in mortgage-backed securities, credit analysis, and portfolio management, providing a strong foundation for navigating the complexities of the market.

Goal

The primary investment goal of ANGL is to generate current income.

Investment Approach and Strategy

Strategy: ANGL employs an active management strategy, selecting mortgage-backed securities based on rigorous credit analysis and market conditions.

Composition The ETF holds a portfolio of non-agency mortgage-backed securities, which are debt obligations backed by residential mortgages that are not guaranteed by government-sponsored enterprises (GSEs) like Fannie Mae or Freddie Mac.

Market Share: ANGL holds a moderate market share within the actively managed non-agency mortgage-backed securities ETF segment.

Total Net Assets (AUM): 85775251

Key Competitors

• Invesco Senior Loan ETF (BKLN)
• VanEck CLO ETF (CLOI)
• iShares MBS ETF (MBB)

Competitive Landscape

The market for mortgage-backed securities ETFs is competitive, with various funds offering different strategies and risk profiles. ANGL differentiates itself through its exclusive focus on non-agency MBS and active management. ANGLu2019s advantage lies in its specialization, but faces competition from larger, more diversified MBS ETFs that offer broader market exposure, but ANGL is still more tailored.

Historical Performance: ANGL's historical performance is linked to the credit quality and interest rate sensitivity of its underlying MBS holdings. The return is around 4.5% year to date.

Benchmark Comparison: A relevant benchmark would be an index tracking the non-agency mortgage-backed securities market. Performance relative to this benchmark reflects the success of Angel Oak's active management.

Expense Ratio: 0.75

Average Trading Volume

ANGL exhibits a moderate average trading volume, indicating reasonable liquidity for investors, around 17,567.0 shares traded daily.

Bid-Ask Spread

The bid-ask spread for ANGL varies but is generally within an acceptable range for ETFs of its size and trading volume, approximately 0.10%.

Market Environment Factors

Economic growth, interest rate movements, and housing market conditions influence ANGL's performance. Rising interest rates and credit spreads can negatively impact the value of its holdings.

Growth Trajectory

ANGL's growth depends on investor demand for income-generating assets and the attractiveness of non-agency MBS relative to other fixed-income investments. Changes in housing finance regulations could also impact its growth trajectory.

Competitive Edge

ANGL's competitive edge stems from Angel Oak's specialized expertise in the non-agency MBS market. This expertise allows them to actively manage the portfolio and identify opportunities that may be overlooked by passive strategies. Angel Oak's focused approach provides the potential for higher returns, but also introduces greater risk. The ETF's active management aims to generate alpha through security selection and risk management within the complex MBS market.

Volatility

ANGL's volatility is influenced by the credit risk of its underlying non-agency MBS holdings and interest rate sensitivity. It will move higher and lower than investment grade bonds.

Market Risk

Specific risks include credit risk (borrower defaults), interest rate risk (changes in interest rates affecting MBS values), and prepayment risk (mortgage holders paying off loans early).

Ideal Investor Profile

ANGL is suited for income-seeking investors with a higher risk tolerance who understand the complexities of mortgage-backed securities. Investors who can tolerate higher volatility are suited to invest in ANGL.

Market Risk

ANGL is best for long-term investors seeking current income and willing to accept higher credit and interest rate risks.

Angel Oak Mortgage-Backed Securities ETF (ANGL) offers income by investing in non-agency mortgage-backed securities. The fund's active management strategy and specialized focus on non-agency MBS differentiate it from broader market ETFs. It suits income-seeking investors with higher risk tolerance, due to interest rates and the volatile nature of the investments. ANGL is influenced by economic growth, interest rate movements, and housing market conditions.

Data Sources:

• NYSEARCA: ANGL
• FactSet
• Bloomberg
• Angel Oak Capital Advisors Website

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Consult with a financial advisor before making any investment decisions. Market share and performance data are estimates and may not be exact.