Angel Oak Launches Income ETF Focused on Mortgage Bonds

Value-oriented structured credit investment firm Angel Oak Capital Advisors launched its second actively managed exchange-traded fund.of Angel Oak Income ETF (NYSE Arca: CARY)which trades on the New York Stock Exchange, offers investors the opportunity to invest primarily in US structured credit, with a strong bias towards mortgage credit.

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

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

Sreeni Prabhu, Group CIO and Managing Partner of Angel Oak Capital Advisors, said in a news release: “Continued growth into the ETF space underscores our position as a leading candidate to fill a gap in the structured credit market for investors.”

This ETF will be managed by Angel Oak’s experienced portfolio management team. In addition, Ward Bortz joined Angel Oak in June as CARY’s Portfolio Manager, recently released Ultra Short Term Income ETF (NYSE Arca: UYLD).

“Today there are few opportunities as compelling as those found in US structured credit assets,” said Bortz. “We are in a market where these income-driven solutions are needed and sought after by investors. I am excited to continue growing his ETF business for the company to meet their needs.”

CARY’s expense ratio is 0.79%.

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