Angel Oak Launches Income ETF Focused on Residential Mortgage Credit

Value-driven structured credit investment firm Angel Oak Capital Advisors has launched its second actively managed exchange-traded fund. The Angel Oak Income ETF (NYSE Arca: CARY), which trades on the New York Stock Exchange, provides investors with the opportunity to invest primarily across U.S. structured credit with a strong bias toward residential mortgage credit.

CARY seeks the best risk-adjusted opportunities in fixed income that offer the potential for both stable income and price appreciation. The team employs a top-down approach to identify relative value opportunities and a bottom-up credit selection process to select individual issues.

The primary focus of fund assets will be within residential mortgage-backed securities, asset-backed securities, commercial mortgage-backed securities, and collateralized loan obligations. The fund’s managers will invest opportunistically across a wide range of credits and issuer types based on relative value within structured credit.

“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, in a news release. “Our continued growth into the ETF space underscores our position as front-runners in filling a gap in the structured credit market for investors.”

The ETF will be managed by Angel Oak’s experienced portfolio management team. In addition, Ward Bortz joined Angel Oak in June as a portfolio manager for CARY and the recently launched UltraShort Income ETF (NYSE Arca: UYLD).

“There has rarely been an investment opportunity as compelling as what we are seeing today in U.S. structured credit assets,” Bortz said. “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.”

CARY has an expense ratio of 0.79%.

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