IFC Advisors LLC has taken a significant step by acquiring 2,971,014 shares of the Angel Oak Income ETF (CARY), valued at approximately $62.20 million, according to a recent SEC filing. This new position represents 8.83% of IFC’s reportable U.S. equity assets under management and highlights a strategic shift towards fixed-income investments, contrasting with their existing holdings in large-cap equity ETFs.
The Angel Oak Income ETF, which focuses on structured credit including mortgage-backed and asset-backed securities, has an annualized dividend yield of 5.98%. While CARY’s share price has remained relatively flat over the past year, underperforming the S&P 500 by 26 percentage points, its primary goal is to provide stable income rather than capital appreciation. This aligns with IFC’s diversification strategy, as the ETF offers a different risk-return profile compared to their other equity-focused investments.
For market professionals, IFC’s investment in CARY underscores the importance of incorporating income-generating assets into portfolios, particularly in a rising interest rate environment where traditional equities may face volatility.
Source: fool.com