- What does ODHY invest in?
- ODHY is actively managed and invests primarily in high yield, USD-denominated corporate bonds (junk bonds). It uses a bottom-up, value-driven process in selecting securities, targeting larger companies with significant cash flow and higher-rated bonds (B3/B or better). The advisor assesses each companys credit risk through a proprietary default risk rating (DRR), which evaluates default probability, loan recovery, and other factors such as audited financial statements, restricted payments covenants, and industry classifications. Up to 10% may be allocated to government securities, higher-rated bonds, or unrated/lower-rated bonds if DRR equivalents meet established criteria. The fund may engage in frequent trading during periods of volatility to optimize returns or limit losses. Industry exposure is capped at 15%, issuer holdings at 1.5%, and the weighted average rating is maintained at B2/B.
- What is the expense ratio of ODHY?
- Obra Defensive High Yield ETF (ODHY) charges an expense ratio of 0.70%. This is the annual fee deducted from fund assets to cover management and operations.
- What is ODHY's distribution yield?
- ODHY's trailing-twelve-month yield is 5.21%, calculated from the sum of distributions over the past year divided by the current price.
- How does ODHY's covered-call strategy work?
- ODHY 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 ODHY?
- Effective duration measures ODHY's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. ODHY's current duration is published on the fund's factsheet on the issuer's website.
- What is the credit quality of ODHY?
- ODHY'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.
