What Is the CARY ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
An actively managed bond ETF that seeks high monthly income by capitalizing on inefficiencies in the structured loan and asset-backed securities (ABS) markets.
SubscribeWhat Is This ETF?
Through active management, the fund invests primarily in a variety of fixed-income assets worldwide, with a particular focus on securitized credit products. Its hallmark is the flexibility to build the portfolio without restrictions on credit rating or maturity, depending on market conditions.
It suits investors who want higher yields than traditional bond investing and who aim to secure stable monthly cash flow through professional management of structured credit.
It is an actively managed ETF launched in 2022 by Angel Oak Capital.
How Does It Invest?
| Item | Details |
|---|---|
| Tracking Index | N/A (actively managed) |
| Management Style | Active (securitized credit strategy) |
| Rebalancing Frequency | As needed (active adjustments) |
| Dividend Frequency | Monthly |
| Expense Ratio | 0.80% |
The fund invests across the broader asset-backed market, including mortgage-backed securities, commercial mortgage-backed securities (CMBS), and collateralized loan obligations. The portfolio manager analyzes the fundamentals of individual securities, selects those that look relatively undervalued, and manages risk.
- Specialized research capabilities in the asset-backed securities (ABS) market
- A portfolio with low correlation to market indexes
Size and Costs
Assets under management (AUM) stand at $1.5B, and the expense ratio is 0.80% per year.
Unlike JAAA and PAAA shown in the table, which concentrate on high-credit-quality loan-backed products, CARY actively invests in a broader range of structured products such as ABS and MBS in pursuit of additional returns.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeEven during periods of high interest rate volatility, the fund has maintained solid performance on the strength of the high interest income from structured securities, and it has particularly outperformed the market when credit spreads in certain sectors narrowed.
As expectations grow that interest rates have peaked, capital has been flowing into income-oriented assets that offer high fixed yields, and the fund is drawing strong interest from savvy investors seeking diversification.
Pros and Cons
High monthly dividends and low correlation with the market are attractive, but investors should be mindful of the credit risk and liquidity risk inherent in structured products.
💪 Key Strengths
⚠️ Points of Caution
Alternative ETFs and Related Products
JAAA and PAAA shown in the table are standard choices for high-quality loan-backed investing, and CLOA is a similar actively managed product. For a somewhat more conservative approach, consider FSEC, which focuses on investment-grade securities. For more aggressive high-yield exposure, consider USHY, which centers on high-yield bonds, or CLOI, which has a larger allocation to lower tranches.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 JAAA | Janus Henderson AAA CLO ETF | $50.44 | -0.4% | $32.5B | 0.20% | 5.26% | -0.5% |
 PAAA | PGIM AAA CLO ETF | $51.30 | -0.3% | $15.1B | 0.19% | 5.06% | -0.3% |
 FSEC | Fidelity Investment Grade Securitized ETF | $42.76 | +0.4% | $4.5B | 0.36% | 4.56% | -3.5% |
 CLOA | iShares AAA CLO Active ETF | $51.97 | +0.1% | $2.8B | 0.20% | 4.77% | +0.2% |
 CLOI | VanEck CLO ETF | $52.98 | +0.0% | $1.8B | 0.36% | 5.08% | -0.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 FAF | First American Financial Corp | 0.08% | $63.82 | +0.2% | $6.5B | 9.0 | 3.64% |
 USLM | United States Lime & Minerals Inc | 0.01% | $111.61 | -2.0% | $3.2B | 23.9 | 0.22% |
 BKLN | Invesco Senior Loan ETF | 0.02% | $20.43 | -0.1% | $0.0M | - | 6.4% |
 ARCC | Ares Capital Corp | 0.00% | $19.11 | -0.1% | $13.8B | 15.7 | 10.05% |
 CIK | UBS Asset Management Income Fund Inc | 0.01% | $2.33 | +0.0% | $127.8M | - | 10.64% |
| BLK | Blackrock Inc | 0.00% | $1147.54 | -2.4% | $186.4B | 26.8 | 1.99% |
 ESGD | iShares Trust iShares ESG Aware MSCI EAFE ETF | 0.00% | $102.72 | -0.8% | $0.0M | - | 3.33% |
Investor Checkpoints
We have summarized the key points to review before deciding to invest in the CARY ETF. It is important to thoroughly examine the distinctive characteristics of the structured credit market and the strategic capabilities of the asset manager.
| Checkpoint | What to Verify | Current Status |
|---|---|---|
| 📊 Asset Allocation | Check the allocation by detailed asset type, such as asset-backed securities (ABS) | Needs verification |
| 💵 Dividend Sustainability | Review whether monthly distributions are being maintained at a stable level | On the high side |
| 📉 Interest Rate Sensitivity | Ability to respond to rate changes through duration management | Flexible |
| 💰 Expense Ratio | Assess whether costs are reasonable relative to the active strategy | Holding steady |
If the real estate market slumps or corporate default rates surge, the value of the collateral assets in the portfolio may decline and cause losses. Investors should also note that liquidity can shrink sharply during periods of market panic.
This is a distinctive ETF that can serve as an effective asset allocation alternative for investors seeking a high level of income through actively managed, professionally run structured credit investing.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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