The folks at a 79-employee, 16-year-old, fixed income asset manager in Georgia are celebrating a big milestone in one of their younger businesses.

Last week, Sreeni Prabhu, managing partner and co-CEO of Angel Oak Capital Advisors, LLC [profile], and Ward Bortz, ETF portfolio manager and head of distribution for U.S. wealth, revealed that the Atlanta-based firm's ETF business has crossed the $1-billion-AUM line. The move took 20 months (i.e. less than two years), as Angel Oak entered the space in October 2022.

Angel Oak ETF business includes subadvisory services and four ETFs (two of which are converted mutual funds). The first of Angel Oak's ETFs was the Angel Oak UltraShort Income ETF (UYLD), which has grown to more than $447 million in AUM.

To put the ETF business' growth in context, Angel Oak overall now offers more than 50 investment vehicles and has $17 billion in AUM (as of March 31). Thus, ETFs now account for about six percent of the firm's business.

Prabhu describes the milestone as "a testament to the trust" of Angel Oak's clients.

"Everyone at Angel Oak is proud of this achievement, and we believe our scale will allow us to help even more investors," Prabhu states.

Bortz calls investors' "affirming response" to Angel Oak's ETF efforts "nothing less than remarkable." He puts the milestone in the context of Angel Oak's focus on securitized credit investing.

"The asset classes we invest in are often underrepresented in investment portfolios — particularly ETF portfolios," Bortz states. 

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