OneAscent Core Plus Bond ETF (OACP) seeks to provide current income and capital preservation through a diversified portfolio of investment-grade and high-yield bonds. This core-plus fixed income strategy combines traditional government and corporate bonds with higher-yielding credit opportunities to enhance total returns while maintaining moderate risk.
How It Works
OACP employs an actively managed approach that invests across multiple bond sectors including U.S. Treasuries, investment-grade corporates, high-yield bonds, and potentially international debt securities. The fund's portfolio managers adjust duration, credit quality, and sector allocation based on market conditions and interest rate outlook. Holdings typically range from 50-150 individual bonds with duration management between 3-7 years to balance income generation with interest rate sensitivity.
Key Features
- Zero expense ratio provides significant cost advantage over typical core-plus bond funds charging 0.50-0.80% annually
- Active management allows tactical shifts between bond sectors during changing credit cycles and interest rate environments
- 3.70% dividend yield offers attractive income generation in current low-rate environment with quarterly distributions
Risks
- This ETF can lose value when interest rates rise, as bond prices move inversely to rates, potentially causing 5-10% declines during rate hiking cycles
- Credit risk exposure through high-yield bonds could result in losses during economic downturns when corporate defaults increase significantly
- Active management risk means fund performance may lag passive bond index ETFs if manager decisions prove incorrect or poorly timed
Who Should Own This
Best suited for conservative to moderate investors with 2-5 year time horizons seeking steady income and capital preservation. Low to medium risk tolerance required due to interest rate and credit sensitivity. Works as core bond allocation (20-40% of portfolio) for retirees or income-focused investors wanting enhanced yield over Treasury-only strategies.