Angel Oak Capital Advisors Launches Income ETF Focused on Residential Mortgage Credit Opportunities

Rhea-AI Summary

Angel Oak Capital Advisors has launched the Angel Oak Income ETF (NYSE: CARY), its second actively managed exchange-traded fund, following the successful debut of the UltraShort Income ETF (NYSE: UYLD). This ETF primarily invests in U.S. structured credit, focusing on residential mortgage credit, aiming for significant yield with moderate duration. The management team has extensive experience in these securities, enhancing investor opportunities in a growing market for income-driven solutions.

Positive

• Launch of Angel Oak Income ETF (NYSE: CARY), second ETF in weeks.
• Focus on U.S. structured credit, especially residential mortgage credit.
• Expected significant yield with moderate duration compared to corporate bond indices.
• Experienced portfolio management team enhancing investor confidence.

Negative

• None.

Following the successful launch of the UltraShort Income ETF, Angel Oak continues the expansion of its ETF suite

ATLANTA--(BUSINESS WIRE)-- Angel Oak Capital Advisors, an investment management firm that specializes in value-driven structured credit, is excited to announce the launch of the Angel Oak Income ETF (NYSE: CARY). The firm’s second actively managed exchange-traded fund provides investors with the opportunity to invest primarily across U.S. structured credit with a strong bias toward residential mortgage credit.

The Fund’s significant allocation to structured credit combined with Angel Oak’s experience in these fixed-income asset classes should drive significant yield at a moderate duration compared to other similarly rated corporate bond indices as well as broad fixed-income markets.

“We are excited to be delivering our second actively managed ETF product in as many weeks,” said Sreeni Prabhu, group CIO and managing partner at Angel Oak Capital Advisors. “Our continued growth into the ETF space underscores our position as a front-runner in filling a gap in the structured credit market for investors.”

The ETF will be managed by Angel Oak’s experienced portfolio management team, which since 2011 has managed mutual funds that allocate to these types of securities. In addition, Ward Bortz joined Angel Oak in June as a portfolio manager of the new ETF as well as of the firm’s recently launched UltraShort Income ETF (NYSE: UYLD).

“There has rarely been an investment opportunity as compelling as what we are seeing today in U.S. structured credit assets,” remarked Bortz. “We are at a time in the market when these income-driven solutions are needed and being sought after by investors. Angel Oak has been a pioneer in structured credit investing for over a decade, and I am excited to continue to grow the firm’s ETF business to help meet the needs of investors.”

To learn more about the Fund and Angel Oak, please visit angeloakcapital.com.

About Angel Oak Capital Advisors, LLC

Angel Oak is an investment management firm focused on providing compelling fixed-income investment solutions to its clients. Backed by a value-driven approach, Angel Oak seeks to deliver attractive, risk-adjusted returns through a combination of stable current income and price appreciation. Its experienced investment team seeks the best opportunities in fixed income, with a specialization in mortgage-backed securities and other areas of structured credit.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund. This and other important information about the Fund is contained in the Prospectus which can be obtained by calling Shareholder Services or from www.angeloakcapital.com. The Prospectus should be read carefully before investing.

Investing involves risk; principal loss is possible. Investments in debt securities typically decrease when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower-rated and nonrated securities present a greater risk of loss to principal and interest than higher-rated securities do. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of, including credit risk, prepayment risk, possible illiquidity, and default, as well as increased susceptibility to adverse economic developments. Derivatives involve risks different from—and in certain cases, greater than—the risks presented by more traditional investments. Derivatives may involve certain costs and risks such as illiquidity, interest rate, market, credit, management, and the risk that a position could not be closed when most advantageous. Investing in derivatives could lead to losses that are greater than the amount invested. The Fund may make short sales of securities, which involves the risk that losses may exceed the original amount invested. The Fund may use leverage, which may exaggerate the effect of any increase or decrease in the value of securities in the Fund’s portfolio or higher and duplicative expenses when it invests in mutual funds, ETFs, and other investment companies. For more information on these risks and other risks of the Fund, please see the Prospectus.

ETFs may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market prices (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The Fund is an actively managed ETF, which is a fund that trades like other publicly-traded securities. The Fund is not an index fund and does not seek to replicate the performance of a specified index.

The Angel Oak Funds are distributed by Quasar Distributors, LLC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221108005680/en/

Media:

Trevor Davis, Gregory FCA for Angel Oak Capital Advisors

443-248-0359

trevor@gregoryfca.com



Company:

Randy Chrisman, Chief Marketing & Corporate IR Officer, Angel Oak Capital Advisors

404-953-4969

randy.chrisman@angeloakcapital.com

Source: Angel Oak Capital Advisors

FAQ

What is the newly launched ETF by Angel Oak Capital Advisors?

The newly launched ETF is the Angel Oak Income ETF (NYSE: CARY).

What investment focus does the Angel Oak Income ETF (CARY) have?

The Angel Oak Income ETF primarily invests in U.S. structured credit, with a strong emphasis on residential mortgage credit.

How does the yield of Angel Oak Income ETF (CARY) compare to corporate bonds?

The Angel Oak Income ETF aims for significant yield at a moderate duration compared to similarly rated corporate bond indices.

Who manages the Angel Oak Income ETF (CARY)?

The ETF is managed by Angel Oak’s experienced portfolio management team.