Alternative Access First Priority CLO Bond ETF (AAA)
ARCA ARCA Primary 
CXA 
Janus Henderson AAA CLO ETF Q2 2025 Commentary
AAA CLOs continue to offer attractive yields and strong risk-adjusted returns, especially in a higher-for-longer interest rate environment. The fund delivered a 1.52% quarterly return, slightly trailing the J.P. Morgan CLO AAA Index due to security selection, but benefited from spread duration positioning. Robust U.S. economic data, resilient labor markets, and easing trade tensions support a positive outlook for CLO spreads and ongoing investor demand.
PAAA: A Fantastic ETF To Access Income-Generating CLOs
PAAA offers an ideal, low-risk way to access AAA CLOs, combining consistent income, capital appreciation, and strong outperformance versus peers and benchmarks. The ETF boasts lower fees, higher returns, and greater liquidity than competitors, making it a robust core or income-generating portfolio holding. AAA CLOs historically have zero defaults, floating rates, and higher yields than Treasuries, but investors should be aware of price volatility and spread compression risks.
RAAA: A New And Exciting Leveraged AAA CLO Fund From Reckoner
Reckoner Leveraged AAA CLO ETF (RAAA) is the first ETF to offer leveraged exposure to the stable AAA CLO asset class. The fund is managed by an experienced team, notably John Kim, with a strong track record in CLO ETF management. RAAA aims to enhance yield by actively applying leverage, potentially offering a 60 bps excess spread over established funds like JAAA.
PAAA: Among The Safest AAA CLO ETF
PGIM AAA CLO ETF offers a safer alternative to most AAA CLO funds for risk-on cash allocations. PAAA demonstrated superior performance and stability compared to sector leader JAAA during the recent market downturn and rebound. I recommend PAAA for investors seeking higher yields than savings accounts, CDs, or money markets, with moderate price fluctuation risk.
PAAA: Protecting Your Capital From Continued Declines
PAAA offers stability and resilience amid market volatility, with a 5.5% dividend yield and minimal decline compared to broader indexes. The fund focuses on AAA-rated CLO debt, ensuring high priority for repayment and low risk of default. There have not been any defaults within AAA-rated CLO debt over the last. PAAA's monthly payouts provide consistent income, making it a defensive position to offset market uncertainty and volatility.
Janus Henderson AAA CLO ETF Q4 2024 Commentary
The Fund returned 1.77% and the J.P. Morgan CLO AAA Index returned 1.59%. Security selection within AAA rated collateralized loan obligations (CLOs) contributed, as did the portfolio's maturity profile relative to the benchmark. We believe the attractive yields in floating rate CLOs are likely to persist amid a healthy economy and a higher-for-longer interest rate environment.
Undercovered ETFs: Parking Cash, CLOs, Bonds, Mexico +
The 'Undercovered' Dozen series highlights lesser-covered ETFs, offering insights from various authors on potential opportunities and trends in this space. The Janus Henderson AAA CLO ETF (JAAA) invests in AAA tranches of CLOs, providing lower risk through diversification and predictable outcomes, according to John Bowman. Stratos Capital Partners views the Vanguard Extended Duration Treasury ETF (EDV) as attractive for its high-yield and potential bond price appreciation as interest rates decline.
PAAA: Newer AAA CLO ETF, Competitive Yield, Stable Share Price
PAAA is a newer ETF investing in AAA-rated CLOs. Default rates for these securities are zero. Dividends are good, with a 5.9% yield. Despite potential Fed cuts, PAAA's yield should remain competitive, trading at a 1.0% - 1.5% spread to t-bill rates.
PAAA: PGIM's Answer To The AAA CLO Dilemma
PGIM launched PAAA in 2023, targeting retail investors with access to the $1.2 trillion collateralized loan obligation (CLO) market, traditionally reserved for institutions. PAAA primarily invests in senior AAA-rated CLO tranches, aiming for total returns through current income and capital appreciation. The fund maintains a high level of diversification, with no single holding exceeding 2%, and invests in a range of issuances from reputable managers.
Keywords Studios acquires AAA game-development studio Certain Affinity
Keywords Studios PLC (AIM:KWS, OTC:KYYWF) has entered into an agreement to acquire Certain Affinity, a US-based game-development studio known for co-development services on major AAA multiplayer titles. The acquisition aims to strengthen Keywords' Create division, particularly in the action genre, and expand its presence in the US and Canada.
Janus Henderson AAA CLO ETF Q2 2024 Commentary
The Fund returned 1.87% and the J.P. Morgan CLO AAA Index returned 1.77%. The Fund's slightly longer duration contributed: a small allocation to AA rated collateralized loan obligations (CLOs) and security selection within AAA rated CLOs further contributed. In our view, floating-rate CLOs should continue to benefit from a healthy economy that underpins a less-aggressive rate cutting cycle, keeping short-term rates higher for longer.
Is CLO Outperformance Set To Continue?
CLO ETF performance has been outstanding these past few years. Most have seen below-average drawdowns, significant dividend growth, and massive outperformance with above-average yields. Yields range from 6.4% to 8.9%, and that is without leverage or excessive credit risk.
