Another Solid Year For CARY, A Top High-Quality Income ETF
The Angel Oak Income ETF is a diversified bond ETF, focusing on higher-quality, shorter-term securitized investments, such as MBS and CLOs. CARY's portfolio results in an above-average 6.0% yield, below-average realized volatility, and drawdowns. The ETF continues to outperform, with solid returns YTD. I'm bullish about the future too, and the fund should prove resilient to changes in market conditions.
CARY: Watch Out For The Expense Ratio (Rating Downgrade)
Angel Oak Income ETF has delivered a stable, well-defined uptrend and outperformed peers since April 2025. CARY's portfolio remains MBS-heavy, but risk has increased with below-investment-grade exposure rising from 30% to 38%. The expense ratio has risen from 0.79% to 0.99% after a fee waiver expired, now nearly double the peer median.
Three Reasons CARY Is One Of The Best High-Quality Bond ETFs
The Angel Oak Income ETF focuses on high-quality, shorter-term MBS, with sizable investments in a couple other bond sub-asset classes. CARY's investment thesis is quite strong and balanced, with the fund offering investors an above-average 6.1% yield, above-average returns since inception, and below-average realized volatility. The main disadvantage is its 0.79% expense ratio, but the fund has more than earned its fees in the past.
CARY: Broad Bond ETF, Above-Average Dividend Yield, Below-Average Risk And Volatility
CARY holds a diversified portfolio of bonds, focusing on short-term investment-grade securities, mainly MBS. The fund's active management strategy, including overweighting MBS, has led to higher returns and outperformance compared to its benchmark and most bonds. CARY sports an above-average 5.0% yield, below-average risk and volatility, and has outperformed most peers since inception.
CARY: High Yield And Quite Low Risk, But CLO ETFs Look Better
The Angel Oak Income ETF is an actively managed high-yield fund, primarily investing in mortgage-backed securities, collateralized obligations, and asset-backed securities. CARY has a low-risk profile for a high-yield fund, based on credit risk and historical volatility. CARY outperforms the total US bond market and a high-yield bond benchmark in risk-adjusted performance but lags three CLO ETFs.
Top Dividend ETFs For 2025
On Seeking Alpha, I focus on dividend ETFs targeted towards income investors and retirees. Of these, six currently stand out for their comparatively high yields, strong overall risk-return profile. ETFs vary in risk, from similar to cash, to leveraged high-yield bonds and loans.
3 Strong Income ETFs, Yields 6.2% - 8.3%
CARY, CLOZ, and CEFS are three of the strongest income ETFs in the market right now. CARY's diversified, high-quality portfolio is perfect for more risk-averse investors. It has a solid 6.2% yield, and outstanding risk-returns. CEFS is much more aggressive, offering a good 7.8% yield, and strong returns. It is riskier than most.
CARY: Strong Investment-Grade Bond ETF, Above-Average 6.2% Yield, Outstanding Risk-Adjusted Returns
CARY holds a diversified portfolio of bonds, focusing on short-term investment-grade securities, mainly MBS. The fund's active management strategy, including overweighting MBS, has led to higher returns and outperformance compared to its benchmark and most bonds. CARY sports an above-average 6.2% yield, below-average risk and volatility, and has outperformed most peers since inception.
CARY: MBS Fund From Angel Oak, 6.4% Yield
Angel Oak Income ETF offers investors exposure to mortgage-backed securities (MBS) with a focus on both agency and non-agency bonds. The fund benefits from a duration of 4.3 years, making it well-positioned to capitalize on declining interest rates. While CARY has delivered strong performance, investors should be aware of interest rate and liquidity risks.
CARY: Promising Performance Potential
Angel Oak Income ETF is an actively managed fund that focuses on credit risk in the fixed income markets. The CARY fund has a diversified portfolio with a mix of holdings and a relatively low duration, making it less volatile. CARY outperforms the Vanguard Total Bond Market Index Fund ETF and offers a promising income play with a 30-Day SEC Yield of 6.03%.
