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FIAX ETF — Holdings & Analysis

The Nicholas Fixed Income Alternative ETF (FIAX) is an actively managed fixed income ETF with $0.16 billion in assets under management. Launched in November 2022, FIAX seeks to provide current income by investing primarily in U.S. Treasury fixed income securities.

A key differentiator is its defined risk option premium strategy, which utilizes options on ETFs across multiple asset classes to enhance returns. However, its expense ratio of 0.95% is relatively high compared to category averages.

Nicholas Fixed Income Alternative ETF (FIAX) ETF — Price, Holdings & Analysis

The Nicholas Fixed Income Alternative ETF (FIAX) is an actively managed fixed income ETF with $0.16 billion in assets under management. Launched in November 2022, FIAX seeks to provide current income by investing primarily in U.S. Treasury fixed income securities. A key differentiator is its defined risk option premium strategy, which utilizes options on ETFs across multiple asset classes to enhance returns. However, its expense ratio of 0.95% is relatively high compared to category averages.

ETF Overview

The Nicholas Fixed Income Alternative ETF is an actively managed ETF that invests primarily in U.S. Treasury fixed income securities and aims to provide current income. The fund employs a defined risk option premium strategy using options on ETFs across multiple asset classes.
The Nicholas Fixed Income Alternative ETF (FIAX) is designed for investors seeking current income through exposure to U.S. Treasury fixed income securities, enhanced by an active options strategy. Unlike passively managed fixed income ETFs that simply track an index, FIAX employs a defined risk option premium strategy, using options on ETFs across various asset classes. This active management approach aims to generate additional income and manage risk. While the fund focuses on fixed income, its sector allocation reveals significant investments in technology (34.1%), financial services (12.6%), and communication services (11.2%). The fund's holdings are concentrated in 'Other' countries, representing 100% of its country exposure. With 23 holdings, FIAX offers a more concentrated portfolio compared to broader fixed income ETFs. Past performance does not guarantee future results.

Risk Metrics

FIAX carries several risk considerations. Its expense ratio of 0.95% is higher than the category average, creating a performance drag that must be overcome to deliver competitive returns. The fund's beta of 0.39 indicates lower volatility compared to the overall market, but the active options strategy introduces its own set of risks. Sector concentration is evident, with technology comprising 34.1% of the portfolio, exposing the fund to sector-specific downturns. Furthermore, the fund's country exposure is entirely in 'Other' countries, which may introduce unique geopolitical risks. Investors should carefully consider these factors before investing. Past performance does not guarantee future results.

Expense Ratio

0.95%

How Is the Fund Allocated?

SectorWeight
Technology34.1%
Financial Services12.6%
Communication Services11.2%
Consumer Cyclical10.6%
Healthcare9.4%
Industrials8.0%
Consumer Defensive5.0%
Energy3.2%
Utilities2.3%
Real Estate1.9%
Basic Materials1.8%
CountryWeight
Other100.0%

Dividend Yield

0.00%

Risk Metrics

  • Beta: 0.39

Questions & Answers

What is FIAX and what does it track?

The Nicholas Fixed Income Alternative ETF (FIAX) is an actively managed ETF that primarily invests in U.S. Treasury fixed income securities. It does not track a specific index.

Instead, FIAX aims to provide current income through a defined risk option premium strategy, utilizing options on ETFs across multiple asset classes.

What is the expense ratio for FIAX?

The expense ratio for the Nicholas Fixed Income Alternative ETF (FIAX) is 0.95%. This means that for every $10,000 invested, $95 is used to cover the fund's operating expenses annually.

The expense ratio is relatively high compared to the average expense ratio for fixed income ETFs, which is approximately 0.44%.

What are the top holdings in FIAX?

As an actively managed fund, FIAX's holdings are subject to change. While specific holdings data is not available, the fund's sector allocation provides insight into its investment strategy.

The top sector allocations include Technology (34.1%), Financial Services (12.6%), and Communication Services (11.2%).

Is FIAX a good long-term investment?

Determining whether FIAX is a suitable long-term investment depends on individual investor goals and risk tolerance. The fund's active management and defined risk option premium strategy may appeal to investors seeking enhanced income and risk management.

However, the higher expense ratio of 0.95% can impact long-term returns. The fund's beta of 0.39 suggests lower volatility compared to the overall market.

How does FIAX compare to similar ETFs?

FIAX differentiates itself from similar ETFs through its active management and defined risk option premium strategy. While many fixed income ETFs passively track an index, FIAX actively selects investments and utilizes options to generate income.

However, its expense ratio of 0.95% is higher than many passively managed fixed income ETFs.

Does FIAX pay dividends?

According to the provided data, the Nicholas Fixed Income Alternative ETF (FIAX) has a dividend yield of 0.00%. This indicates that, as of the current data, FIAX is not distributing dividends to its shareholders.

Investors seeking income through dividends may need to consider alternative fixed income ETFs with a positive dividend yield.