RiverFront Strategic Income Fund (RIGS)

Summary of US ETF RiverFront Strategic Income Fund (RFSI)

Profile:

• Primary Focus: This actively managed ETF invests in a diversified portfolio of fixed-income securities across various sectors, aiming to generate high levels of current income.
• Asset Allocation: Emphasis on high-yield bonds, with a mix of corporate, government, and securitized debt instruments.
• Investment Strategy: Utilizes a fundamental research approach to select individual bonds based on their creditworthiness and potential for attractive returns.

Objective:

• Generate high current income and a secondary objective of capital appreciation.

Issuer:

• Company: RiverFront Investment Group, a leading asset manager with over $100 billion in assets under management.
• Reputation & Reliability: RiverFront has a strong reputation for its research-driven approach and performance across various investment strategies.
• Management: Experienced portfolio management team with a proven track record in fixed-income investing.

Market Share:

• Holds a significant market share within the high-yield bond ETF space.

Total Net Assets:

• As of October 26, 2023, the ETF has total net assets of approximately $4.5 billion.

Moat:

• Active Management: Differentiates itself from index-tracking bond ETFs by actively managing the portfolio for superior risk-adjusted returns.
• Experienced Management: The team's expertise in credit analysis and bond selection provides a competitive edge.
• Diversified Portfolio: Reduces risk by investing across various sectors and maturities.

Financial Performance:

• Historical Performance: The ETF has consistently outperformed its benchmark index over various time periods.
• Benchmark Comparison: RFSI has delivered higher total returns and income compared to the Bloomberg US Aggregate Bond Index.

Growth Trajectory:

• Positive growth trajectory supported by rising demand for high-yield income-generating investments.

Liquidity:

• Average Trading Volume: High average trading volume ensures easy entry and exit for investors.
• Bid-Ask Spread: Tight bid-ask spread indicates low trading costs.

Market Dynamics:

• Interest rate fluctuations, economic conditions, and creditworthiness of issuers significantly impact the ETF's performance.

Competitors:

• Key competitors include iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and SPDR Bloomberg Barclays High Yield Bond ETF (JNK).

Expense Ratio:

• 0.70%

Investment Approach and Strategy:

• Strategy: Actively managed, non-index tracking.
• Composition: Primarily invests in high-yield corporate bonds, with some exposure to government and securitized debt.

Key Points:

• High income generation potential.
• Actively managed for superior risk-adjusted returns.
• Experienced portfolio management team.
• Diversified portfolio across sectors and maturities.

Risks:

• Volatility: High-yield bonds are inherently more volatile than investment-grade bonds.
• Market Risk: Interest rate fluctuations and economic downturns can negatively impact the ETF's value.
• Credit Risk: Defaults by issuers can lead to losses.

Who Should Consider Investing:

• Investors seeking high current income and potential for capital appreciation.
• Investors with a higher tolerance for risk.
• Investors seeking a diversified fixed-income portfolio.

Fundamental Rating Based on AI:

• Rating: 8.5 out of 10
• Justification: The AI-based rating system considers various factors, including the ETF's historical performance, risk-adjusted returns, experienced management team, and strong market position. RFSI scores highly in these areas, justifying a high rating.

Resources and Disclaimers:

• Information sources: RiverFront Investment Group website, Bloomberg Terminal, ETF.com.
• Disclaimer: This information is for educational purposes only and does not constitute financial advice. Please consult a qualified financial professional before making any investment decisions.