OneAscent Core Plus Bond ETF (OACP)

Overview

The OneAscent Core Plus Bond ETF (OACP) is an actively managed fixed income ETF that seeks to provide total return by investing primarily in investment-grade U.S. dollar-denominated fixed income securities. The ETF aims to outperform the Bloomberg Barclays U.S. Aggregate Bond Index.

Reputation and Reliability

OneAscent is a relatively new entrant in the ETF market. While the firm may not have a long track record, its investment professionals possess experience in fixed-income management.

Management Expertise

The management team consists of experienced fixed-income professionals with a focus on credit analysis and macroeconomic forecasting.

Goal

To provide total return through current income and capital appreciation by investing in a diversified portfolio of fixed-income securities.

Investment Approach and Strategy

Strategy: The ETF employs an active management strategy, meaning the portfolio managers select securities and adjust allocations based on their analysis of market conditions and opportunities.

Composition The ETF primarily invests in U.S. dollar-denominated investment-grade bonds, including government securities, corporate bonds, mortgage-backed securities, and asset-backed securities. Exposure to high yield and international bonds is also a possibility.

Market Share: OACP's market share is relatively small compared to established bond ETFs.

Total Net Assets (AUM): 15970207

Key Competitors

• iShares Core U.S. Aggregate Bond ETF (AGG)
• Vanguard Total Bond Market ETF (BND)
• Schwab U.S. Aggregate Bond ETF (SCHZ)

Competitive Landscape

The bond ETF market is highly competitive, dominated by low-cost, passively managed ETFs. OACP differentiates itself through active management, aiming to outperform its benchmark. However, it faces the challenge of justifying its higher expense ratio compared to passively managed alternatives. A potential advantage includes the ability to adapt to changing market conditions more effectively than passive funds.

Historical Performance: Historical performance data is limited due to OACP's relatively short trading history, making long-term performance analysis difficult.

Benchmark Comparison: Compare OACP's performance against the Bloomberg Barclays U.S. Aggregate Bond Index to understand its effectiveness. As it is actively managed, benchmark comparision is crutial in judging performance

Expense Ratio: 0.39

Average Trading Volume

The average trading volume for OACP is relatively low, suggesting lower liquidity compared to more established bond ETFs.

Bid-Ask Spread

The bid-ask spread may be wider compared to more liquid bond ETFs, potentially increasing trading costs.

Market Environment Factors

Economic indicators such as interest rates, inflation, and GDP growth significantly influence the performance of bond ETFs like OACP. Sector growth prospects are determined by the creditworthiness of various issuers and the overall health of the fixed-income market.

Growth Trajectory

OACP's growth trajectory depends on its ability to attract assets by delivering competitive performance and effectively communicating its active management strategy to investors. Changes to strategy and holdings can be expected based on interest rates, credit conditions and economic data.

Competitive Edge

OACP's competitive edge lies in its active management strategy, where experienced portfolio managers seek to identify undervalued securities and capitalize on market inefficiencies. The fund's focus on credit analysis and macroeconomic forecasting allows it to potentially outperform its benchmark. Active management may add value through strategic duration and sector allocation decisions, which should be beneficial when interest rates change. These factors allow OACP to take advantage of the ebbs and flows of the market.

Volatility

OACP's volatility is expected to be similar to other investment-grade bond ETFs, although active management could potentially increase or decrease volatility compared to passive funds.

Market Risk

OACP is subject to market risk, including interest rate risk (the risk that bond prices will decline as interest rates rise) and credit risk (the risk that issuers will default on their obligations). Because of the potential for high yield bonds, credit risk can be high.

Ideal Investor Profile

OACP may be suitable for investors seeking total return through a diversified fixed-income portfolio and who are willing to pay a higher expense ratio for active management.

Market Risk

OACP is suitable for investors who want to benefit from current yield of fixed-income, but not follow index ETFs

The OneAscent Core Plus Bond ETF (OACP) is an actively managed fixed-income ETF aiming to outperform its benchmark through strategic security selection and allocation. Its success hinges on the expertise of its management team and their ability to generate alpha in a competitive market. While the higher expense ratio is a drawback, active management could offer potential benefits in terms of risk-adjusted returns. However, investors should be aware of the risks associated with fixed income investments, including interest rate and credit risk. OACP offers a targeted approach to fixed income that can suit particular needs within a broader investment strategy.

Data Sources:

• OneAscent Funds Website
• Bloomberg
• SEC Filings

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investors should consult with a financial advisor before making any investment decisions. Data might be outdated.