UYLD Profile
The Angel Oak Ultrashort Income ETF is an actively managed exchange-traded fund (ETF) focused on generating current income while maintaining a low level of interest rate risk. The fund's investment strategy centers on maintaining a dollar-weighted average maturity of less than two years and a dollar-weighted average duration of less than one year. This approach helps the fund mitigate interest rate risk and enhance stability by investing in short-duration securities.
Under normal market conditions, the fund may allocate up to 25% of its net assets to collateralized loan obligations (CLOs), which are structured financial products backed by a pool of loans. CLOs can provide attractive yields and diversification benefits, though they come with their own set of risks, including credit risk and the complexity of their structures. The fund's investment in CLOs reflects its strategy to seek higher returns while managing duration risk.
Additionally, the fund may invest in other investment companies, such as closed-end investment companies, open-end investment companies, and business development companies (BDCs). These investments can include traditional mutual funds, ETFs, and other funds that focus on various asset classes. By incorporating these investment vehicles, the fund aims to gain exposure to a diverse range of fixed-income and credit instruments while maintaining its short-duration profile.
As a non-diversified fund, the Angel Oak Ultrashort Income ETF may concentrate its investments in fewer securities or sectors compared to a more broadly diversified portfolio. This concentration can lead to increased exposure to specific risks related to the selected securities or sectors. Investors should be aware of the fund's concentrated exposure and its impact on the overall risk and return profile of their investment.
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