Angel Oak Capital Advisors, LLC has announced that its ETF platform, composed of its four actively managed fixed income ETFs and its sub-advisory services, has surpassed USD1 billion in assets under management (AUM) since launching in November 2022.
“Reaching the USD1 billion mark in just 20 months is a testament to the trust that our clients place in us and our deep expertise in the securitized credit market,” says Sreeni Prabhu, Managing Partner and Co-CEO at Angel Oak. “Everyone at Angel Oak is proud of this achievement, and we believe our scale will allow us to help even more investors.”
Following the firm’s first ETF launch, Angel Oak UltraShort Income ETF (NYSE: UYLD), Angel Oak also launched Angel Oak Income ETF (NYSE: CARY) and, earlier this year, converted two of its mutual funds into ETFs — Angel Oak High Yield Opportunities ETF (NYSE: AOHY) and Angel Oak Mortgage-Backed Securities ETF (NYSE: MBS). The firm writes that its ETF suite is one of the few in the marketplace offering investors significant exposure to non-agency residential mortgage-backed securities, consumer asset-backed securities and other securitized credit assets with an actively managed approach.
This AUM milestone underscores the robust growth and strong market acceptance of Angel Oak’s innovative investment offerings in a marketplace that was previously starved for securitised credit ETF solutions, the firm says. “By effectively addressing the needs of advisors and institutional investors, the platform offers compelling investment opportunities that seek a distinct combination of strong yield potential with diversification away from traditional fixed-income assets.”
“We are grateful for the affirming response from advisers and institutional investors. It has been nothing less than remarkable. We continue to have productive conversations about the role these different solutions can play in a portfolio, especially given the significant premium currently offered by securitised credit,” says Ward Bortz, ETF Portfolio Manager and the Head of Distribution for US Wealth. “The asset classes we invest in are often underrepresented in investment portfolios — particularly ETF portfolios. We look forward to helping these investors access securitised credit and the continued growth of our platform.”
