Angel Oak Capital Advisors, an investment management firm that specializes in value-driven structured credit, launched the Angel Oak UltraShort Income ETF. The firm’s first exchange-traded fund, which complements its existing lineup of mutual funds and private strategies, provides investors a unique opportunity to invest in short-duration structured credit assets and cash-like instruments that seek to provide higher yield without sacrificing credit quality.
The actively managed ETF is one of the first in the ultrashort space that will have a sizable allocation to non-agency residential mortgage-backed securities as well as asset-backed securities. This, which drives a differentiated yield and higher credit quality profile, provides ETF investors with a type of strategy that has not existed in the wrapper to date.
“Angel Oak has been a leader in the structured credit investment space for over a decade, and we are excited to bring our unique approach to short-duration structured credit investing to the ETF marketplace,” Sreeni Prabhu, group CIO and managing partner at Angel Oak Capital Advisors, said. “In recent history there has rarely been an investment opportunity as strong as what we see in the short-duration space to generate yield with the risk profile we are targeting. We are thrilled to launch this ETF at a pivotal moment for investors seeking such strategies.”
Since 2008, Angel Oak has served as a pioneer for investing in structured credit assets, including non-agency residential mortgage-backed securities, collateralized loan obligations and consumer asset-backed securities. Angel Oak believes its bottom-up approach to uncovering yield in the short-duration space will drive institutional and retail dollar flows alike.
To support Angel Oak’s advancement into the ETF industry, the firm added Ward Bortz in June to serve as head of ETFs. Bortz previously served as head of strategy for fixed-income factors at Invesco US.
“Joining Angel Oak and spearheading the launch of the UltraShort Income ETF was an enticing opportunity because of the firm’s dedicated approach to structured credit assets and the chance to bring a new product to market that we’ve heard investors ask for,” Bortz said. “We look forward to the success of UYLD and growing Angel Oak’s ETF offerings in the future.”
