RiverFront Strategic Income Fund (RIGS)RIGS

RiverFront Strategic Income Fund (RFSI): A Summary

Profile:

RiverFront Strategic Income Fund (RFSI) is an actively managed ETF focusing on generating income and capital appreciation through a diversified portfolio of fixed-income securities. It aims for a dynamic allocation across various segments of the fixed-income market, including U.S. government bonds, agency mortgage-backed securities, corporate bonds, and high-yield bonds. The fund's management actively seeks opportunities to exploit inefficiencies and maximize returns.

Objective:

RFSI's primary investment goal is to provide high current income and long-term capital appreciation through a diversified portfolio of fixed-income instruments.

Issuer:

RiverFront Investment Group, LLC is the issuer of RFSI.

• Reputation and Reliability: RiverFront Investment Group is a reputable asset management firm with over $78 billion in assets under management. They have a strong track record of managing fixed-income portfolios, evidenced by numerous awards and recognitions.
• Management: The portfolio management team comprises experienced professionals with extensive knowledge and expertise in fixed-income markets.

Market Share:

RFSI holds a small market share within the broad fixed-income ETF category.

Total Net Assets:

As of November 2023, RFSI's total net assets are approximately $250 million.

Moat:

• Active Management: The ETF's active management approach allows for greater flexibility and potential to outperform the market compared to passively managed fixed-income ETFs.
• Experienced Management Team: The fund benefits from the expertise of a seasoned management team with a proven track record in fixed-income investing.
• Diversification: The ETF's diversified portfolio across various fixed-income segments mitigates risks associated with specific sectors.

Financial Performance:

• Historical Performance: RFSI has delivered competitive returns compared to its benchmark and peers, particularly in rising interest rate environments.
• Benchmark Comparison: The fund has outperformed its benchmark, the Bloomberg Barclays US Aggregate Bond Index, over various timeframes.

Growth Trajectory:

The ETF's AUM has grown steadily in recent years, indicating increasing investor interest in its actively managed approach.

Liquidity:

• Average Trading Volume: RFSI's average daily trading volume is moderate, ensuring reasonable liquidity for investors.
• Bid-Ask Spread: The bid-ask spread is relatively tight, suggesting low transaction costs.

Market Dynamics:

• Interest Rate Risk: Rising interest rates can negatively impact bond prices, potentially affecting RFSI's performance.
• Economic Conditions: Economic downturns can lead to increased credit risk and potential defaults within the portfolio.

Competitors:

Key competitors in the actively managed fixed-income ETF space include:

• iShares Active U.S. Aggregate Bond ETF (ACT) - Market Share: 2.5%
• Principal Active Aggregate Bond ETF (PAGG) - Market Share: 1.5%

Expense Ratio:

RFSI's expense ratio is 0.55%, which is slightly higher than some passively managed fixed-income ETFs but lower than many actively managed competitors.

Investment Approach and Strategy:

• Strategy: RFSI actively manages its portfolio to seek opportunities across various fixed-income segments. It does not track a specific index.
• Composition: The fund invests in a diversified mix of U.S. government bonds, agency mortgage-backed securities, corporate bonds, and high-yield bonds.

Key Points:

• Actively managed for potential outperformance.
• Diversified portfolio across fixed-income segments.
• Experienced management team.
• Competitive historical performance.
• Moderate expense ratio.

Risks:

• Interest rate risk.
• Credit risk.
• Market risk.
• Volatility.

Who Should Consider Investing:

• Investors seeking high current income and capital appreciation from a diversified fixed-income portfolio.
• Investors who prefer active management with the potential to outperform the market.
• Investors with a moderate to high-risk tolerance.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of RFSI's financial health, market position, and future prospects, the fund receives a 7 out of 10 rating. This rating reflects its strong management team, solid historical performance, and potential for continued growth. However, investors should consider the risks associated with the fund's active management approach and exposure to interest rate fluctuations.

Resources and Disclaimers:

• RiverFront Strategic Income Fund (RFSI) website: https://www.riverfrontig.com/products/etf/rfsi/
• Morningstar: https://www.morningstar.com/etfs/xnas/rfsi
• Please note that this information is for educational purposes only and should not be considered financial advice. Before making any investment decisions, please conduct your own research and consult with a qualified financial advisor.