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TOAK ETF — Holdings & Analysis

The Twin Oak Short Horizon Absolute Return ETF (TOAK) is an actively managed alternatives fund with $0.04 billion in assets under management. TOAK aims for capital appreciation with reduced volatility by employing defined risk options strategies with short durations.

The ETF's expense ratio is 0.25%, which is relatively competitive for an actively managed fund focused on alternative strategies. TOAK differentiates itself by using defined risk options, avoiding leverage and naked option writing, while considering price, liquidity, duration, and risk in its investment decisions.

Twin Oak Short Horizon Absolute Return ETF (TOAK) ETF — Price, Holdings & Analysis

The Twin Oak Short Horizon Absolute Return ETF (TOAK) is an actively managed alternatives fund with $0.04 billion in assets under management. TOAK aims for capital appreciation with reduced volatility by employing defined risk options strategies with short durations. The ETF's expense ratio is 0.25%, which is relatively competitive for an actively managed fund focused on alternative strategies. TOAK differentiates itself by using defined risk options, avoiding leverage and naked option writing, while considering price, liquidity, duration, and risk in its investment decisions.

ETF Overview

TOAK seeks to provide capital appreciation, with reduced price volatility. The portfolio is actively managed and traded, using defined risk options with a short duration of zero to one year. Define risk options are those in which the maximum loss for any option during the expiry period is no more than the premium invested. An option position pairing strategy is employed to reduce risk. The fund does not use leverage or naked option writing. However, option contracts may be exchanged-listed, over-the-counter (OTC), or FLEX options. The use of OTC options exposes investors to counter-party risk. Based on the portfolio managers assessment of current economic and market conditions, along with existing holdings, the fund may invest in long calls, long puts, debit spreads or a combination of these strategies. In choosing positions for the portfolio, TOAK managers consider price, liquidity, duration, and risk into consideration.
The Twin Oak Short Horizon Absolute Return ETF (TOAK) seeks capital appreciation while minimizing price volatility through active management and defined risk options strategies. The fund invests in options with a short duration of zero to one year, focusing on strategies where the maximum loss is limited to the premium invested. TOAK employs option position pairing to further reduce risk and avoids leverage and naked option writing. The fund may invest in long calls, long puts, or debit spreads, depending on the portfolio managers' assessment of economic and market conditions. TOAK's investment decisions are based on factors such as price, liquidity, duration, and risk. The fund may use exchange-listed, over-the-counter (OTC), or FLEX options. The use of OTC options exposes investors to counter-party risk. This ETF is designed for investors seeking alternative strategies with a focus on risk management and capital preservation.

Risk Metrics

TOAK's risk profile is shaped by its active management and use of options strategies. While the fund aims to reduce volatility, the use of options, including OTC options, introduces counterparty risk. The fund's small AUM of $0.04 billion may present liquidity risks. With a beta of 0.00, TOAK exhibits very low correlation to the overall market, which can be beneficial for diversification but also means its performance is driven by its specific strategies rather than broad market movements. The expense ratio of 0.25% can create a slight drag on performance, but is relatively low for an actively managed alternatives fund. Past performance does not guarantee future results.

Expense Ratio

0.25%

Dividend Yield

0.00%

Risk Metrics

  • Beta: 0.00

Questions & Answers

What is TOAK and what does it track?

The Twin Oak Short Horizon Absolute Return ETF (TOAK) is an actively managed alternatives ETF that aims to provide capital appreciation while reducing price volatility.

Unlike traditional ETFs that track an index, TOAK employs defined risk options strategies with a short duration of zero to one year.

What is the expense ratio for TOAK?

The expense ratio for the Twin Oak Short Horizon Absolute Return ETF (TOAK) is 0.25%. This means that for every $10,000 invested in the fund, $25 is used to cover the fund's operating expenses.

While there isn't a definitive category average for all alternatives ETFs, this expense ratio is relatively competitive, especially considering that TOAK is an actively managed fund.

What are the top holdings in TOAK?

As an actively managed ETF utilizing options strategies, TOAK does not have traditional stock or bond holdings. Instead, its portfolio consists of various options contracts, such as long calls, long puts, and debit spreads.

The specific options positions held by TOAK will vary depending on the portfolio managers' assessment of market conditions and opportunities.

Is TOAK a good long-term investment?

Whether TOAK is a suitable long-term investment depends on an investor's individual goals, risk tolerance, and investment horizon. TOAK's strategy focuses on capital appreciation with reduced volatility through defined risk options, which may appeal to investors seeking downside protection.

However, the fund's active management and use of options also introduce complexity and potential risks.

How does TOAK compare to similar ETFs?

TOAK differentiates itself through its focus on defined risk options strategies and its active management approach. Many alternative ETFs may employ different strategies, such as long/short equity, managed futures, or real estate.

TOAK's expense ratio of 0.25% is competitive within the actively managed alternatives space.

Does TOAK pay dividends?

According to the latest data, the Twin Oak Short Horizon Absolute Return ETF (TOAK) has a dividend yield of 0.00%. This indicates that the fund does not currently distribute any dividends to its shareholders.

The fund's focus on capital appreciation through options strategies, rather than income generation, likely contributes to its lack of dividend payments.