IFC Advisors Adds $62M Position in Income-Focused CARY ETF

What happened

According to a Securities and Exchange Commission (SEC) filing dated May 4, 2026, IFC Advisors LLC initiated a new position in Angel Oak Income ETF (NASDAQ:CARY) by acquiring 2,971,014 shares. The estimated transaction value, based on the mean unadjusted closing price for the quarter ended March 31, 2026, is $62.20 million. The quarter-end value of the stake reflects a $61.72 million increase, encompassing both share purchases and price movements.

What else to know

• This is a new position for IFC Advisors LLC, representing 8.83% of the fund’s reportable U.S. equity assets under management after the trade.
• Top holdings after the filing:
  • NYSEMKT:VTV: $114.95 million (16.4% of AUM)
  • NYSEMKT:MGK: $68.90 million (9.9% of AUM)
  • NYSEMKT:PREF: $51.38 million (7.4% of AUM)
  • NYSEMKT:VO: $37.65 million (5.4% of AUM)
  • NASDAQ:UYLD: $16.02 million (2.3% of AUM)
• As of May 4, 2026, shares of Angel Oak Income ETF were priced at $20.79, up 1.1% over the past year, but underperformed the S&P 500 by 26 percentage points in that period.
• The ETF’s annualized dividend yield stands at 5.98%.

ETF overview

ETF snapshot

• Investment strategy targets risk-adjusted income and price appreciation through a combination of top-down macro allocation and bottom-up credit selection within the fixed income universe.
• Portfolio is primarily composed of residential and commercial mortgage-backed securities, asset-backed securities, and collateralized loan obligations, with active allocation across structured credit sectors.
• Fund structure is an exchange-traded fund, providing daily liquidity and transparency, with a focus on delivering stable income to income-oriented investors.

Angel Oak Income ETF is a fixed-income ETF with a $1.01 billion market capitalization, focused on generating stable income and capital appreciation through diversified exposure to structured credit. The fund employs a disciplined strategy that combines macroeconomic analysis with rigorous credit selection, seeking relative value opportunities across mortgage-backed and asset-backed securities. With an annualized dividend yield of 5.98% and a one-year total return of 6.91%, the ETF aims to appeal to institutional and income-focused investors seeking differentiated fixed income exposure.

What this transaction means for investors

IFC Advisors’ new position in the Angel Oak Income ETF (CARY) stands out, given how different it is from its other top holdings.

ETFs like Vanguard Value Index Fund (VTV) and Vanguard Mega Cap Growth Index Fund (MGK) focus on large-cap stocks. CARY, on the other hand, focuses on structured credit, such as mortgage-backed and asset-backed securities. While investors tend to judge the other ETFs’ performance by their price growth, CARY is built to generate income through dividends. With a yield of nearly 6%, it offers a very different kind of return.

So, you can’t really compare CARY to the S&P 500 in terms of share price performance. The ETF’s share price has been roughly flat over the past year, while the S&P 500 is up more than 27%. But CARY isn’t meant to keep up with stocks in a strong market. It’s meant to provide a steady income.

Individual investors often have different goals from institutions like IFC, but one thing they usually have in common is the need for diversification. An ETF like CARY isn't about chasing winners, and it's not exciting. But if most of your portfolio is in stocks, it can smooth out the ups and downs.

Pamela Kock has positions in Vanguard Mid-Cap ETF. The Motley Fool has positions in and recommends Vanguard Mid-Cap ETF and Vanguard Value ETF. The Motley Fool has a disclosure policy.