Angel Oak High Yield Opportunities ETF

Investor Summary

The fund is managed by a highly experienced team led by Managing Partner and Co-CEO Sreeni Prabhu and Chief Investment Officer Namit Sinha. Sreeni Prabhu brings extensive institutional experience, having previously served as Chief Investment Officer at Washington Mutual Bank where he managed a $25 billion portfolio, and managed a $3 billion commercial mortgage-backed securities portfolio at SunTrust Bank. His leadership spans the overall investment strategy of Angel Oak Capital with deep expertise in structured credit markets. Namit Sinha contributes 15 years of fixed income experience from his tenure at leading financial institutions including Canyon Capital, Nomura Securities, Lehman Brothers, and Barclays, bringing specialized knowledge in high-yield bond markets and credit analysis to oversee the firm's investment strategies.

Fund Strategy

The Angel Oak High Yield Opportunities ETF employs a top-down investment strategy driven by sector specialists analyzing interest rates, economic expectations, and valuations to seek relative value opportunities. The fund emphasizes a vertically integrated, data-driven approach combining thorough market analysis, credit expertise, and intelligent structuring to unlock value in alternative credit markets. Angel Oak's investment philosophy centers on developing and delivering attractive risk-adjusted returns from products that combine stable current income and price appreciation. The firm utilizes strong due diligence, market knowledge and macroeconomic insights in their investment process. The fund seeks to earn a high level of current income with a secondary objective of capital appreciation through investments in below investment-grade securities. The strategy focuses on maximizing long-term risk-adjusted returns aligned with the high-yield bond market across various maturities. Under normal circumstances, at least 80% of net assets are invested in securities rated below investment grade. The approach leverages Angel Oak's expertise in alternative and structured credit solutions developed over more than 15 years of investment experience. The fund maintains diversification across corporate bonds, securitized bonds, and select preferred securities to optimize risk-return characteristics.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
7.52%	-0.15%	-0.15%

Executive Summary

The Angel Oak High Yield Opportunities ETF returned -0.15% in Q1 2026, outperforming the Bloomberg U.S. Corporate High Yield Index at -0.50%. The quarter began strongly but turned negative in March following the Iran conflict that started February 28th, creating market volatility and inflationary pressures. Energy was the top performing sector, benefiting from rising LNG and methanol prices tied to the conflict. The U.S. economy remains resilient with stable employment, real wage growth, and support from OBBBA tax cuts, though the conflict poses risks of persistent inflation and margin pressure. High-yield spreads widened meaningfully from post-GFC lows but appear attractive on a three-month basis. The fund's securitized credit allocation outperformed, contributing 25 basis points. Looking ahead, the manager emphasizes higher-quality corporate issuers with strong fundamentals while gradually trimming out-of-index securitized exposure to balance risk and return amid heightened geopolitical uncertainty and limited visibility into conflict duration.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Apr 18 2026	2026 Q1	-	credit, energy, high yield, inflation, Iran, Securitized	-	Angel Oak High Yield ETF outperformed in Q1 2026 despite Iran conflict volatility, with energy sector driving gains from rising commodity prices. Fund emphasizes quality corporate issuers while trimming securitized credit exposure amid geopolitical uncertainty and inflation risks from sustained energy price increases.
Jan 22 2026	2025 Q4	AOHY	consumer, credit, Fed, high yield, rates, Resilience, Spreads	-	Angel Oak High Yield Opportunities ETF's strategy centers on consumer and corporate resilience driving economic strength despite tight credit spreads. The fund emphasizes high-quality issuers with strong fundamentals while gradually reducing securitized credit exposure. Fed rate cuts and 2026 policy changes should support continued growth, though disciplined selection remains critical given limited spread compression room.
Oct 24 2025	2025 Q3	-	Corporate Bonds, credit, Fed, high yield, inflation, rates	CHK	Angel Oak High Yield ETF returned 2.04% in Q3, underperforming its benchmark as Fed rate cuts supported lower-quality credit outperformance. Despite resilient consumer spending, the manager remains cautious on elevated valuations and emerging economic deterioration, emphasizing high-quality corporate issuers while reducing securitized credit exposure.
Jul 19 2025	2025 Q2	-	Corporate Bonds, credit, high yield, Spreads, tariffs	-	Angel Oak delivered 3.46% returns in Q2 amid tariff-driven volatility and subsequent relief rally. Corporate bonds outperformed while securitized credit lagged. Credit spreads have tightened to full valuations. The manager maintains cautious positioning, trimming securitized overweight for high-quality corporates while navigating tariff uncertainty and mixed economic signals.
Mar 31 2025	2025 Q1	-	Corporate Bonds, credit, Fed policy, high yield, Securitized Credit, tariffs	-	Angel Oak High Yield Opportunities ETF matched benchmark returns at 1.01% in Q1 2025 despite tariff-induced uncertainty causing credit spread widening. Lower-quality credits underperformed while higher-quality BB-rated issuers outperformed. The fund is shifting toward high-quality corporate issuers with strong fundamentals as managers focus on balancing risk and reward amid economic uncertainty.
Jan 21 2025	2024 Q4	-	Corporate Bonds, credit spreads, Fed policy, fixed income, high yield, interest rates	-	Angel Oak High Yield Opportunities ETF outperformed in Q4 through corporate credit selection, particularly in energy. Despite credit spreads at post-GFC tights and elevated valuations, managers expect continued tightening from economic resilience and credit quality improvements. Portfolio is shifting from securitized credit toward high-quality corporate issuers with strong margins and cash flow generation.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Apr 18 2026

2026 Q1

credit, energy, high yield, inflation, Iran, Securitized

Angel Oak High Yield ETF outperformed in Q1 2026 despite Iran conflict volatility, with energy sector driving gains from rising commodity prices. Fund emphasizes quality corporate issuers while trimming securitized credit exposure amid geopolitical uncertainty and inflation risks from sustained energy price increases.

Jan 22 2026

2025 Q4

AOHY

consumer, credit, Fed, high yield, rates, Resilience, Spreads

Angel Oak High Yield Opportunities ETF's strategy centers on consumer and corporate resilience driving economic strength despite tight credit spreads. The fund emphasizes high-quality issuers with strong fundamentals while gradually reducing securitized credit exposure. Fed rate cuts and 2026 policy changes should support continued growth, though disciplined selection remains critical given limited spread compression room.

Oct 24 2025

2025 Q3

Corporate Bonds, credit, Fed, high yield, inflation, rates

CHK

Angel Oak High Yield ETF returned 2.04% in Q3, underperforming its benchmark as Fed rate cuts supported lower-quality credit outperformance. Despite resilient consumer spending, the manager remains cautious on elevated valuations and emerging economic deterioration, emphasizing high-quality corporate issuers while reducing securitized credit exposure.

Jul 19 2025

2025 Q2

Corporate Bonds, credit, high yield, Spreads, tariffs

Angel Oak delivered 3.46% returns in Q2 amid tariff-driven volatility and subsequent relief rally. Corporate bonds outperformed while securitized credit lagged. Credit spreads have tightened to full valuations. The manager maintains cautious positioning, trimming securitized overweight for high-quality corporates while navigating tariff uncertainty and mixed economic signals.

Mar 31 2025

2025 Q1

Corporate Bonds, credit, Fed policy, high yield, Securitized Credit, tariffs

Angel Oak High Yield Opportunities ETF matched benchmark returns at 1.01% in Q1 2025 despite tariff-induced uncertainty causing credit spread widening. Lower-quality credits underperformed while higher-quality BB-rated issuers outperformed. The fund is shifting toward high-quality corporate issuers with strong fundamentals as managers focus on balancing risk and reward amid economic uncertainty.

Jan 21 2025

2024 Q4

Corporate Bonds, credit spreads, Fed policy, fixed income, high yield, interest rates

Angel Oak High Yield Opportunities ETF outperformed in Q4 through corporate credit selection, particularly in energy. Despite credit spreads at post-GFC tights and elevated valuations, managers expect continued tightening from economic resilience and credit quality improvements. Portfolio is shifting from securitized credit toward high-quality corporate issuers with strong margins and cash flow generation.

QUARTER	THEMES	TAGS
2026 Q1	Iran The Iran conflict beginning on February 28th has created significant market volatility and inflationary pressures through rising energy prices. The duration and evolution of this conflict represents a key macroeconomic risk that could lead to persistent inflation and pressure on corporate margins.	Geopolitical Energy Inflation Conflict Risk
	Energy Energy sector was the largest positive contributor to performance, returning 4.98% versus 2.54% for the benchmark. A liquefied natural gas producer benefited from rising LNG prices tied to the Iran conflict, while methanol producers gained from increased demand as Iran accounts for more than 10% of global methanol supply.	LNG Natural Gas Methanol Commodities Pricing
	Inflation Core PCE inflation increased from 2.5% to 2.7% in FOMC projections, incorporating expected effects of the OBBBA legislation. The central question is whether inflationary impacts from tariffs and sustained energy price increases could become more persistent, potentially pressuring margins and economic activity.	PCE FOMC Tariffs Pricing Policy
2025 Q4	AI AI continued as a major theme with over 300 S&P 500 companies mentioning artificial intelligence on earnings calls. However, scrutiny increased around AI-related revenue circularity, massive capital spending scale, and durability of longer-term returns on investment. Oracle faced concerns about OpenAI backlog concentration risk and significant debt required for datacenter commitments.	Artificial Intelligence Data Centers Capital Spending Revenue Circularity Infrastructure
	Trade Policy Trade relations between the U.S. and China remained a key market focus with tensions flaring over tariff escalations and export controls. China dramatically expanded export controls on rare earth minerals while the U.S. threatened 100% tariffs in retaliation. A one-year trade truce was ultimately reached between Presidents Trump and Xi Jinping.	Tariffs China Export Controls Rare Earth Minerals Trade Relations
	Crypto Coinbase Global was added as a new position, viewed as the dominant player in the U.S. cryptocurrency market with over 65% trading volume share. The company benefits from regulatory clarity through the GENIUS Act and anticipated CLARITY Act, boosting institutional adoption. The business model is shifting towards more predictable revenue streams.	Cryptocurrency Regulatory Clarity Institutional Adoption Trading Volume Revenue Streams
	Infrastructure Spending APi Group was added as a new position, benefiting from government incentives including the Infrastructure Investment and Jobs Act and CHIPS Act. The company operates in fire and life safety services with substantial recurring revenue through statutory and contracted services, positioning it well for increased infrastructure spending.	Infrastructure Investment CHIPS Act Fire Safety Recurring Revenue Government Incentives
2025 Q3	Rates Federal Reserve cut rates by 25 basis points in September with markets expecting over 100 basis points of additional cuts bringing federal funds rate to approximately 3% by mid-2026. Rate cuts are expected to stimulate economic activity and support risk assets including high yield corporate debt.	Federal Reserve Rate Cuts Monetary Policy FOMC Easing Cycle
	Credit Stress CCC and below-rated bonds significantly outperformed returning 4.16% with 76 basis points of credit spread tightening. Credit spreads on BB rated bonds remain roughly one standard deviation tighter than long-term averages, while rising unemployment and increasing delinquencies signal emerging economic deterioration.	Credit Spreads High Yield CCC Bonds Credit Quality Delinquencies
	Inflation Core Personal Consumption Expenditures climbed to 2.9% annualized three-month average, in line with year-over-year pace. Tariffs implemented midway through the quarter are considered a one-off price shock rather than sustained inflation source, with early indicators suggesting higher costs not yet fully passed through to consumers.	PCE Core Inflation Tariffs Price Pressures Consumer Prices
2025 Q2	Trade Policy Reciprocal tariffs announced in April triggered market volatility before being paused for 90 days. Uncertainty around tariff scope, magnitude, and timing continues to weigh on markets and corporate planning. Companies are preparing to pass through tariff-related costs to consumers.	Tariffs Trade Inflation Policy
	Credit Stress High yield credit spreads have tightened to one standard deviation below historical averages, suggesting full valuations. CCC and below-rated bonds remain near long-term averages relative to higher-rated peers, offering selective opportunities while reflecting ongoing risks from higher rates.	Spreads Valuations Credit Risk
	AI Artificial intelligence infrastructure growth is driving strong demand for fiber connectivity providers serving data center expansion. Outside AI-benefiting sectors, corporate management teams have adopted cautious stances on expansion and hiring.	Infrastructure Data Centers Connectivity Growth
2025 Q1	Tariffs Tariff announcements raised uncertainty and diminished economic growth outlook, leading to asset valuation reversals. Tariffs are expected to impact inflation, with Fed concerns about whether effects will be transitory or persistent. Consumers are already shifting spending patterns ahead of tariff implementations, attempting to protect incomes by pulling back on services.	Trade Policy Inflation Consumer
	Credit Stress Credit spreads widened significantly during the quarter, with CCC-and-below-rated issuers experiencing substantial decompression and underperforming. Highly leveraged issuers with near-term refinancing needs could face deteriorating credit profiles, potentially contributing to increased default rates given tariff cost impacts and high interest rates.	High Yield Credit Spreads Default Risk
	Risk Appetite Investor risk aversion increased reflecting rising economic uncertainty, resulting in higher-quality, more interest-rate-sensitive BB-rated issuers outperforming while higher-risk CCC-and-below-rated issuers underperformed. The fund is reducing overweight in securitized credit in favor of high-quality corporate issuers with strong margins and solid free cash flow generation.	Quality Flight to Quality Credit Quality
2024 Q4	Credit Stress High-yield corporate credit spreads finished the quarter 13 bps tighter and set a new post-global financial crisis tight of 253 bps on November 12. Corporate credit spreads as a percentage of total yield is at its lowest since prior to the GFC, highlighting the richness of corporate credit spread valuations. Credit card loan delinquencies and charge-offs rising to their highest rates since exiting the GFC though they remain well below GFC peak levels.	Credit Spreads Delinquencies High Yield Corporate Credit Valuations
	Rates Rate cut expectations for 2025 declined from approximately 200 to 250 basis points around the September FOMC meeting to 75 bps following the November meeting and to 25 to 50 bps after the December meeting. Interest rates on maturities of 2-30 years moved up from 60 to more than 80 bps. The Fed appears to have completed its recalibration process, having cut the federal funds rate 100 bps and reduced the restrictiveness of monetary policy.	Fed Funds Rate Rate Cuts Treasury Yields FOMC Monetary Policy
	Energy Transition Energy was the largest positive contributor to performance, returning 1.0% compared to the benchmark which returned 0.4%. The positive attribution was entirely from selection, with the largest positive contribution from a liquefied natural gas company that had one of its projects come on line in the quarter, raised equity capital, and completed a bond exchange.	LNG Natural Gas Energy Infrastructure Project Finance

QUARTER

THEMES

Iran

The Iran conflict beginning on February 28th has created significant market volatility and inflationary pressures through rising energy prices. The duration and evolution of this conflict represents a key macroeconomic risk that could lead to persistent inflation and pressure on corporate margins.

Geopolitical Energy Inflation Conflict Risk

Energy

Energy sector was the largest positive contributor to performance, returning 4.98% versus 2.54% for the benchmark. A liquefied natural gas producer benefited from rising LNG prices tied to the Iran conflict, while methanol producers gained from increased demand as Iran accounts for more than 10% of global methanol supply.

LNG Natural Gas Methanol Commodities Pricing

Inflation

Core PCE inflation increased from 2.5% to 2.7% in FOMC projections, incorporating expected effects of the OBBBA legislation. The central question is whether inflationary impacts from tariffs and sustained energy price increases could become more persistent, potentially pressuring margins and economic activity.

PCE FOMC Tariffs Pricing Policy

2025 Q4

AI

AI continued as a major theme with over 300 S&P 500 companies mentioning artificial intelligence on earnings calls. However, scrutiny increased around AI-related revenue circularity, massive capital spending scale, and durability of longer-term returns on investment. Oracle faced concerns about OpenAI backlog concentration risk and significant debt required for datacenter commitments.

Artificial Intelligence Data Centers Capital Spending Revenue Circularity Infrastructure

Trade Policy

Trade relations between the U.S. and China remained a key market focus with tensions flaring over tariff escalations and export controls. China dramatically expanded export controls on rare earth minerals while the U.S. threatened 100% tariffs in retaliation. A one-year trade truce was ultimately reached between Presidents Trump and Xi Jinping.

Tariffs China Export Controls Rare Earth Minerals Trade Relations

Crypto

Coinbase Global was added as a new position, viewed as the dominant player in the U.S. cryptocurrency market with over 65% trading volume share. The company benefits from regulatory clarity through the GENIUS Act and anticipated CLARITY Act, boosting institutional adoption. The business model is shifting towards more predictable revenue streams.

Cryptocurrency Regulatory Clarity Institutional Adoption Trading Volume Revenue Streams

Infrastructure Spending

APi Group was added as a new position, benefiting from government incentives including the Infrastructure Investment and Jobs Act and CHIPS Act. The company operates in fire and life safety services with substantial recurring revenue through statutory and contracted services, positioning it well for increased infrastructure spending.

Infrastructure Investment CHIPS Act Fire Safety Recurring Revenue Government Incentives

2025 Q3

Rates

Federal Reserve cut rates by 25 basis points in September with markets expecting over 100 basis points of additional cuts bringing federal funds rate to approximately 3% by mid-2026. Rate cuts are expected to stimulate economic activity and support risk assets including high yield corporate debt.

Federal Reserve Rate Cuts Monetary Policy FOMC Easing Cycle

Credit Stress

CCC and below-rated bonds significantly outperformed returning 4.16% with 76 basis points of credit spread tightening. Credit spreads on BB rated bonds remain roughly one standard deviation tighter than long-term averages, while rising unemployment and increasing delinquencies signal emerging economic deterioration.

Credit Spreads High Yield CCC Bonds Credit Quality Delinquencies

Inflation

Core Personal Consumption Expenditures climbed to 2.9% annualized three-month average, in line with year-over-year pace. Tariffs implemented midway through the quarter are considered a one-off price shock rather than sustained inflation source, with early indicators suggesting higher costs not yet fully passed through to consumers.

PCE Core Inflation Tariffs Price Pressures Consumer Prices

2025 Q2

Trade Policy

Reciprocal tariffs announced in April triggered market volatility before being paused for 90 days. Uncertainty around tariff scope, magnitude, and timing continues to weigh on markets and corporate planning. Companies are preparing to pass through tariff-related costs to consumers.

Tariffs Trade Inflation Policy

Credit Stress

High yield credit spreads have tightened to one standard deviation below historical averages, suggesting full valuations. CCC and below-rated bonds remain near long-term averages relative to higher-rated peers, offering selective opportunities while reflecting ongoing risks from higher rates.

Spreads Valuations Credit Risk

AI

Artificial intelligence infrastructure growth is driving strong demand for fiber connectivity providers serving data center expansion. Outside AI-benefiting sectors, corporate management teams have adopted cautious stances on expansion and hiring.

Infrastructure Data Centers Connectivity Growth

2025 Q1

Tariffs

Tariff announcements raised uncertainty and diminished economic growth outlook, leading to asset valuation reversals. Tariffs are expected to impact inflation, with Fed concerns about whether effects will be transitory or persistent. Consumers are already shifting spending patterns ahead of tariff implementations, attempting to protect incomes by pulling back on services.

Trade Policy Inflation Consumer

Credit Stress

Credit spreads widened significantly during the quarter, with CCC-and-below-rated issuers experiencing substantial decompression and underperforming. Highly leveraged issuers with near-term refinancing needs could face deteriorating credit profiles, potentially contributing to increased default rates given tariff cost impacts and high interest rates.

High Yield Credit Spreads Default Risk

Risk Appetite

Investor risk aversion increased reflecting rising economic uncertainty, resulting in higher-quality, more interest-rate-sensitive BB-rated issuers outperforming while higher-risk CCC-and-below-rated issuers underperformed. The fund is reducing overweight in securitized credit in favor of high-quality corporate issuers with strong margins and solid free cash flow generation.

Quality Flight to Quality Credit Quality

2024 Q4

Credit Stress

High-yield corporate credit spreads finished the quarter 13 bps tighter and set a new post-global financial crisis tight of 253 bps on November 12. Corporate credit spreads as a percentage of total yield is at its lowest since prior to the GFC, highlighting the richness of corporate credit spread valuations. Credit card loan delinquencies and charge-offs rising to their highest rates since exiting the GFC though they remain well below GFC peak levels.

Credit Spreads Delinquencies High Yield Corporate Credit Valuations

Rates

Rate cut expectations for 2025 declined from approximately 200 to 250 basis points around the September FOMC meeting to 75 bps following the November meeting and to 25 to 50 bps after the December meeting. Interest rates on maturities of 2-30 years moved up from 60 to more than 80 bps. The Fed appears to have completed its recalibration process, having cut the federal funds rate 100 bps and reduced the restrictiveness of monetary policy.

Fed Funds Rate Rate Cuts Treasury Yields FOMC Monetary Policy

Energy Transition

Energy was the largest positive contributor to performance, returning 1.0% compared to the benchmark which returned 0.4%. The positive attribution was entirely from selection, with the largest positive contribution from a liquefied natural gas company that had one of its projects come on line in the quarter, raised equity capital, and completed a bond exchange.

LNG Natural Gas Energy Infrastructure Project Finance

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Oct 24, 2025	Fund Letters	Sreeni Prabhu	CHK	Chesapeake Energy Corp.	Information Technology	Oil & Gas Exploration & Production	Bull	NASDAQ	Capex discipline, cash flow, credit spreads, energy, high yield, leverage	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Oct 24, 2025

Fund Letters

Sreeni Prabhu

CHK

Chesapeake Energy Corp.

Information Technology

Oil & Gas Exploration & Production

Bull

NASDAQ

Capex discipline, cash flow, credit spreads, energy, high yield, leverage

TICKER	COMMENTARY
No ticker commentary found.

TICKER

COMMENTARY

No ticker commentary found.

Ticker	Put/Call	Amount Bought	Shares Bought	% Change	Weight %
No Recent Buys Data

Ticker

Put/Call

Amount Bought

Shares Bought

% Change

Weight %

No Recent Buys Data

Ticker	Put/Call	Amount Sold	Shares Sold	% Change	Weight %	Status
No Recent Sells Data

Ticker

Put/Call

Amount Sold

Shares Sold

% Change

Weight %

Status

No Recent Sells Data

Industry	Prev Quarter %	Current Quarter %	Change
No industry data available

Industry

Prev Quarter %

Current Quarter %

Change

No industry data available

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 31st March 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Iran

Energy

Inflation

AI

Trade Policy

Crypto

Infrastructure Spending

Rates

Credit Stress

Inflation

Trade Policy

Credit Stress

AI

Tariffs

Credit Stress

Risk Appetite

Credit Stress

Rates

Energy Transition

Investor Pitches

Current Portfolio as of ( 31st March 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Sreeni Prabhu Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

Join for free and get access to the buyside

Get insights from the world's most influential hedge fund investors direct to your inbox

Follow Us On:

Subscribe to receive email notification and updates for:

Angel Oak High Yield Opportunities ETF