Understanding the Angel Oak High Yield Opportunities ETF (AOHY)

What this ETF is trying to do

The Angel Oak High Yield Opportunities ETF (AOHY) is an exchange-traded fund listed on the NASDAQ. While the specific investment strategy isn't detailed in the data, "high yield" usually means the fund seeks to provide income to its investors.

What the numbers show

When looking at an ETF, it is important to understand the difference between "price return" and "total return."

• Price Return: This only tracks how much the share price itself has changed. For AOHY, the one-year price return was approximately -3.66%. The year-to-date (YTD) price return was approximately -2.66%.

• Total Return: This includes both the price changes and the money paid out to investors (distributions). Because of these payouts, the total return figures are higher. The one-year total return was approximately 2.87%, and the YTD total return was approximately 1.66%.

To visualize this, if you look at the estimated price from roughly one year ago, it was about $11.22. The current price is $10.81. Even though the share price went down, the total return accounts for the extra cash received.

Income and distribution explanation

This ETF focuses on providing regular cash to investors. The distribution yield is approximately 6.73%. This means the amount of cash paid out is about 6.73% relative to the current ETF price. These distributions usually happen monthly, with Friday being the most common day for payments. Over the last 12 months, there were 12 payouts totaling approximately $0.73 per share.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. It is important to note that a falling share price does not always mean the NAV is eroding.

In this case, the fund has an erosion-risk score of 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present. This suggests that the fund's price movement is not currently signaling a major risk of value loss based on these specific measurements.

Pros

• The fund provides a regular monthly distribution.

• The total return is positive, even though the share price has declined.

Cons

• The share-price return (price return) has been negative for both the year-to-date and one-year periods.

• The fund has a "C" grade income rating score of 67.

Beginner takeaway

When looking at high-yield ETFs like AOHY, remember that a high distribution yield can sometimes hide a falling share price. Always look at the total return to see how much you actually earned, and check the erosion-risk score to understand the stability of the fund's value.