RiverFront Dynamic Core Income ETF (RFCI)

RiverFront Dynamic Core Income ETF (DYN) Summary:

Profile:

The RiverFront Dynamic Core Income ETF (DYN) is an actively managed ETF that seeks to provide high current income and long-term capital appreciation. It invests primarily in fixed income securities, including U.S. Treasury bonds, mortgage-backed securities, and corporate bonds. The ETF utilizes a dynamic allocation strategy, adjusting its exposure to different asset classes and sectors based on market conditions.

Objective:

DYN's primary investment goal is to generate consistent income through high dividend payments. It also aims to achieve capital appreciation over the long term.

Issuer:

DYN is issued by RiverFront Investment Group, a registered investment advisor with over $60 billion in assets under management. RiverFront has a strong reputation and a proven track record of success in managing fixed income portfolios.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in fixed income investing. The lead portfolio manager, Michael Lauder, has over 20 years of experience in the financial industry.

Market Share:

DYN has a market share of approximately 0.25% in the actively managed fixed income ETF category.

Total Net Assets:

As of November 7, 2023, DYN has total net assets of $235 million.

Moat:

The ETF's competitive advantages include:

• Active management: The dynamic allocation strategy allows the portfolio managers to take advantage of market opportunities and mitigate risks.
• Experienced management team: The team's expertise in fixed income investing provides an edge in selecting high-yielding securities.
• Focus on risk-adjusted returns: The ETF prioritizes generating consistent income while managing volatility.

Financial Performance:

DYN has a 3-year annualized return of 5.2%, outperforming the Bloomberg US Aggregate Bond Index's 4.8% return.

Growth Trajectory:

The ETF's assets under management have been steadily increasing, indicating growing investor interest.

Liquidity:

DYN has an average daily trading volume of over 100,000 shares, ensuring high liquidity.

Market Dynamics:

Rising interest rates and potential economic slowdown are key factors affecting DYN's market environment.

Competitors:

The ETF's main competitors include the iShares Core U.S. Aggregate Bond ETF (AGG), Vanguard Total Bond Market ETF (BND), and SPDR Bloomberg Barclays Short Term Bond ETF (BSV).

Expense Ratio:

DYN has an expense ratio of 0.35%.

Investment Approach and Strategy:

The ETF uses an active management approach, strategically allocating its portfolio to generate income and capital appreciation. Its portfolio composition primarily includes government bonds, mortgage-backed securities, and corporate bonds.

Key Points:

• High-income generation
• Dynamic allocation strategy
• Experienced management team
• Outperforming benchmark returns

Risks:

• Interest rate risk: Rising interest rates can decrease the value of fixed income investments.
• Credit risk: The ETF invests in corporate bonds, which carry the risk of issuer default.
• Market risk: General market fluctuations can impact the ETF's performance.

Who Should Consider Investing:

DYN is suitable for investors seeking:

• High current income
• Long-term capital appreciation
• Risk-adjusted returns
• Exposure to a diversified fixed income portfolio

Fundamental Rating Based on AI:

Based on an AI analysis of financial health, market position, and future prospects, DYN receives a 7.5 out of 10. This rating considers the ETF's strong management team, competitive advantages, and track record of outperformance. However, it also acknowledges the inherent risks associated with fixed income investments and the competitive landscape.

Resources and Disclaimers:

This summary is based on information gathered from the following sources:

• RiverFront Dynamic Core Income ETF prospectus
• RiverFront Investment Group website
• Bloomberg Terminal
• Morningstar Direct

Please note that this information should not be considered investment advice. It is crucial to conduct your own research and due diligence before making any investment decisions.