Angel Oak Income ETF

Frequently Asked Questions About CARY

What does CARY invest in?

CARY provides broad exposure to USD-denominated debt securities of various credit quality and maturities. Investments include structured products, loans, corporate debt, US Treasury, and government agency securities. Structured products include CLOs and CDOs, which may comprise up to 25% of the portfolio. More than 25% are invested in mortgage-related instruments and up to 15% in illiquid investments. Issuers selected depend on the advisers view of best value relative to the market. Using fundamental research and analysis, the actively managed fund considers issuers believed as capable of improving their credit profile over time with attractive valuations. Among other criteria considered are maturity, yield and ratings, and price appreciation. Various factors evaluated include collateral quality, credit support, structure, and market conditions. The adviser also targets undervalued assets with relatively low volatility. The fund may also invest in mutual funds, ETFs, or BDCs.

What is the expense ratio of CARY?

Angel Oak Income ETF (CARY) charges an expense ratio of 1.00%. This is the annual fee deducted from fund assets to cover management and operations.

What is CARY's distribution yield?

CARY's trailing-twelve-month yield is 5.92%, calculated from the sum of distributions over the past year divided by the current price.

How does CARY's covered-call strategy work?

CARY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside. When the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

What is the duration of CARY?

Effective duration measures CARY's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. CARY's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of CARY?

CARY's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.