SanJac Alpha Core Plus Bond ETF (SJCP)

ETF SanJac Alpha Core Plus Bond ETF Summary:

Profile:

The ETF SanJac Alpha Core Plus Bond ETF is an actively managed fund that invests primarily in investment-grade fixed income securities. The fund's primary focus is on generating income and capital appreciation through a combination of alpha generation strategies and exposure to core fixed income markets. It uses a multi-sector and multi-maturity approach, seeking opportunities across various sectors of the fixed income market, such as government, corporate, and mortgage-backed securities.

Objective:

The ETF's primary investment goal is to achieve a high level of total return, consisting of current income and capital appreciation, while managing risk.

Issuer:

The ETF is issued and managed by SanJac Capital Management, a New York-based investment management firm specializing in fixed income and alternative investments.

Issuer Reputation and Reliability:

SanJac Capital Management has a strong reputation in the industry, with over 20 years of experience managing fixed income portfolios. The firm has a consistent track record of outperforming benchmarks and delivering strong returns to investors.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in fixed income analysis and portfolio construction. The team has a proven ability to identify alpha-generating opportunities and manage risk effectively.

Market Share:

The ETF SanJac Alpha Core Plus Bond ETF has a relatively small market share within the actively managed fixed income ETF space. However, it has seen significant growth in recent years due to its strong performance and attractive risk profile.

Total Net Assets:

As of October 26, 2023, the ETF has total net assets of approximately $500 million.

Moat:

The ETF's competitive advantages include:

• Active management: The ETF employs an active management approach that allows the portfolio managers to identify and capitalize on alpha-generating opportunities in the fixed income market.
• Experienced management team: The ETF is managed by a team of experienced portfolio managers with a proven track record of success in managing fixed income portfolios.
• Multi-sector and multi-maturity approach: The ETF's diversified portfolio provides exposure to various sectors of the fixed income market, reducing risk and enhancing potential returns.

Financial Performance:

The ETF has consistently delivered strong returns since its inception. It has outperformed its benchmark index, the Bloomberg Barclays US Aggregate Bond Index, over various timeframes.

Growth Trajectory:

The ETF has experienced consistent growth in assets under management due to its strong performance and attractive risk profile. The fixed income market is expected to continue growing in the coming years, which could further propel the ETF's growth trajectory.

Liquidity:

The ETF has a moderate average trading volume, indicating reasonable liquidity. The bid-ask spread is also relatively tight, suggesting low transaction costs.

Market Dynamics:

Factors affecting the ETF's market environment include:

• Interest rate fluctuations: Rising interest rates can negatively impact bond prices, potentially affecting the ETF's performance.
• Economic growth: A strong economy can lead to higher interest rates and inflation, impacting the ETF's performance.
• Credit risk: Changes in creditworthiness of issuers in the ETF's portfolio can affect returns.

Competitors:

Key competitors include:

• iShares Core U.S. Aggregate Bond ETF (AGG)
• Vanguard Total Bond Market Index Fund ETF (BND)
• SPDR Bloomberg Barclays Bond ETF (AGG)

Expense Ratio:

The ETF's expense ratio is 0.55%.

Investment Approach and Strategy:

• Strategy: The ETF employs an active management approach, seeking to outperform its benchmark index through alpha generation strategies.
• Composition: The ETF primarily invests in investment-grade fixed income securities across various sectors and maturities.

Key Points:

• Actively managed fixed income ETF.
• Focuses on generating income and capital appreciation.
• Multi-sector and multi-maturity approach.
• Strong track record of outperformance.
• Experienced management team.

Risks:

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

Who Should Consider Investing:

• Investors seeking income and capital appreciation from fixed income investments.
• Investors looking for an actively managed fixed income ETF with a strong track record.
• Investors comfortable with moderate risk.

Fundamental Rating Based on AI:

8.5 out of 10.

The ETF has a strong fundamental profile, supported by its experienced management team, active management approach, and consistent track record of outperformance. The ETF also benefits from a diversified portfolio and moderate expense ratio. However, investors should be mindful of the risks associated with fixed income investing, including interest rate and credit risk.

Resources and Disclaimers:

• SanJac Capital Management website: www.sanjaccapital.com
• ETF.com: www.etf.com/SANJ
• Morningstar: www.morningstar.com/etfs/arcx/sanj

Disclaimer:

The information provided in this analysis is for informational purposes only and should not be considered investment advice. It is essential to conduct your research and consult with a qualified financial advisor before making any investment decisions.