Listed Funds Trust - Overlay Shares Short Term Bond ETF (OVT)

Overview

The Overlay Shares Short Term Bond ETF (OVT) seeks to provide current income while maintaining liquidity by investing primarily in a portfolio of short-term U.S. dollar-denominated investment-grade fixed-income securities. It employs a systematic, rules-based approach to manage risk and enhance returns.

Reputation and Reliability

Overlay Shares is a relatively newer issuer in the ETF space, focusing on innovative investment strategies. Their reputation is still developing, but they aim to offer differentiated products.

Management Expertise

The management team has experience in fixed income and systematic investing. They leverage quantitative models and active risk management to pursue their investment objectives.

Goal

The ETF aims to provide current income with lower volatility by investing in short-term, investment-grade bonds.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but utilizes a proprietary, rules-based approach to select and weight securities.

Composition The ETF primarily holds U.S. dollar-denominated, investment-grade corporate bonds, government bonds, and asset-backed securities with short maturities.

Market Share: The Overlay Shares Short Term Bond ETF has a relatively small market share compared to larger, more established short-term bond ETFs.

Total Net Assets (AUM): 40230000

Key Competitors

• iShares Short Maturity Bond ETF (NEAR)
• PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT)
• SPDR Portfolio Short Term Corporate Bond ETF (SPSB)

Competitive Landscape

The short-term bond ETF market is competitive, dominated by larger, more established funds. OVT differentiates itself through its systematic, rules-based approach and active risk management. Competitors often have lower expense ratios and greater liquidity, but OVT aims to potentially offer higher risk-adjusted returns. OVT aims to find a better balance between income and risk in the short term bond space compared to its competitors.

Historical Performance: Historical performance data is available but limited due to the ETF's relatively short operating history.

Benchmark Comparison: Performance should be compared to benchmarks like the Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index to assess relative performance.

Expense Ratio: 0.15

Average Trading Volume

The average trading volume for OVT is low, which could result in wider bid-ask spreads and potentially impact trading costs.

Bid-Ask Spread

The bid-ask spread can vary depending on trading volume, but typically it might be moderate compared to similar bond ETFs.

Market Environment Factors

Interest rate changes, credit spreads, and overall economic conditions influence the performance of short-term bond ETFs like OVT.

Growth Trajectory

The growth trajectory depends on the demand for short-term fixed-income solutions and the ETF's ability to deliver competitive risk-adjusted returns. OVT strategy relies on its systematic approach in a dynamic market.

Competitive Edge

OVT's competitive advantage lies in its systematic, rules-based approach to bond selection and risk management. This approach aims to deliver consistent and potentially higher risk-adjusted returns compared to passively managed short-term bond ETFs. OVT's focus on active risk management through quantitative models differentiates it from other similar products. The ETF seeks to exploit market inefficiencies using a systematic framework.

Volatility

Volatility is expected to be relatively low given the short-term nature of the bond holdings.

Market Risk

Market risk includes interest rate risk (rising rates can decrease bond values), credit risk (risk of issuer default), and liquidity risk (difficulty selling bonds quickly).

Ideal Investor Profile

The ideal investor is one seeking current income, low volatility, and exposure to short-term investment-grade bonds. Investors who want a rules-based approach to fixed-income investing may find this ETF appealing.

Market Risk

This ETF is suitable for long-term investors looking for a stable income stream and capital preservation, as well as for those seeking a low-risk component in their portfolio.

The Overlay Shares Short Term Bond ETF aims to provide current income by investing in short-term, investment-grade bonds using a systematic strategy. Its relatively small size and lower liquidity compared to its competitors could be a consideration for investors. However, its rules-based approach and active risk management may appeal to those seeking potentially higher risk-adjusted returns. OVT offers a distinct investment option within the short-term fixed income category. Potential investors should carefully consider their risk tolerance, investment objectives, and trading needs before investing.

• NEAR
• MINT
• SPSB
• BSCI
• ISTB
• SCHO

Data Sources:

• Overlay Shares Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions can change rapidly, and past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.