AOHY Profile
The Angel Oak High Yield Opportunities ETF (AOHY), issued by Angel Oak, is an exchange-traded fund that focuses primarily on high-yield fixed income investments. Launched on February 20, 2024, the fund is actively managed and seeks to provide investors with broad exposure to high-yield fixed-income securities from around the globe. Its primary objective is to generate a high level of current income, with a secondary goal of capital appreciation.
In pursuit of its investment objective, AOHY invests at least 80% of its net assets, plus any borrowings for investment purposes, in securities that are rated below investment grade at the time of purchase. These high-yield, or junk, bonds typically offer higher yields to compensate for their increased risk compared to investment-grade bonds. The fund's strategy involves careful selection of these securities to balance the potential for income with the risk of default.
AOHY is non-diversified, meaning it can invest a larger portion of its assets in a smaller number of issuers compared to diversified funds. This approach allows the fund's managers to concentrate on their best investment ideas and potentially achieve higher returns, though it also means that the fund may be more susceptible to risks associated with individual issuers. The fund's global reach allows it to tap into high-yield opportunities across different markets, providing a diversified source of income.
Angel Oak's management of AOHY underscores its expertise in the high-yield fixed-income market. The fund leverages the firm's deep knowledge and experience to navigate the complexities of high-yield investing, aiming to deliver strong risk-adjusted returns. With its listing on major exchanges, AOHY offers liquidity and transparency, making it an attractive option for investors seeking to enhance their portfolios with high-yield fixed-income assets while pursuing both income and growth.
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