Summary
CLOA Chart
The 0.50% Fee Question: Active CLO Management or Cheap Alternatives
Collateralized loan obligation ETFs have become one of the fastest-growing corners of fixed income by offering floating-rate coupons, historically low default rates, and yields that outpace investment-grade corporates.
These 3 CLO ETFs Target a Niche Corner of the Fixed-Income Market
Collateralized loan obligations (CLOs) are securitized portfolios of corporate loans divided into tranches by risk profile. For many retail investors, CLOs can be foreign and uncomfortable, but the potential for attractive yields, floating-rate income, and diversification is strong.
CLOA: Strong AAA-Rated CLO ETF, Little Risk And Volatility, Above-Average Income
CLOs are variable-rate securities with varying levels of risk. AAA CLOs are the highest-quality CLOs available and are broadly comparable securities to T-bills, with a somewhat higher yield and slightly higher realized volatility. The iShares AAA CLO Active ETF focuses on AAA-rated CLOs, with an above-average 5.0% yield, a generally stable share price, and an outstanding risk-return.
iShares AAA CLO ETF Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| BZ Brandon Zatopek Commonwealth Equity Services LLC | 276,254 | $14.34M | $14.31M | -$26,238.99 | -0.18% |
| NA Nizar Araji National Bank Of Canada /FI/ | 1,264 | $65,399.36 | $65,494.16 | $94.8 | 0.14% |
| YJK Yu Jin Kim Toews Corp /ADV | 40,500 | $2.1M | $2.1M | $2,798.5 | 0.13% |
| LJB Laura J. Bornheimer GWN SECURITIES Inc. | 4,760 | $247,663.06 | $247,496.2 | -$166.86 | -0.07% |
| AB Anthony Bruccoleri Equitable Holdings Inc. | 178,199 | $9.25M | $9.24M | -$5,621.76 | -0.06% |
iShares AAA CLO ETF (CLOA) FAQ
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iShares AAA CLO ETF Profile
| NASDAQ (NMS) Exchange | US Country |
Overview
The fund is an investment vehicle focusing on capital growth through strategic investments in collateralized loan obligations (CLOs). It earmarks at least 80% of its assets for investment in U.S. dollar-denominated CLOs that are rated AAA (or an equivalent) by major rating agencies or, in the absence of a rating, are deemed of similar quality by the fund’s management team. The investment objective is to provide returns through selections of high-quality CLOs of any maturity, while it maintains a stance of being non-diversified, allowing for focused, yet potentially higher-risk investment approaches.
Products and Services
- Investment in AAA-Rated CLOs
The fund principally invests in U.S. dollar-denominated CLOs that have achieved an AAA rating from one or more major rating agencies. This ensures that investments are made into high-quality assets, offering a degree of security and potential for stable returns. These CLOs encompass loans that are aggregated and packaged, offering diversified exposure to various corporate debt.
- Investment in Unrated CLOs of Similar Quality
In cases where CLOs do not have a formal rating, the fund's management team conducts a comprehensive analysis to ascertain their quality, allowing for investments in unrated CLOs deemed of similar quality to AAA-rated ones. This approach broadens the potential investment base, enabling the fund to tap into opportunities that may not be immediately apparent through traditional rating metrics.
- Flexibility in Maturity Periods
The fund embarks on investments across CLOs of various maturities. This flexibility enables the fund to be agile and strategic in its investment choices, adapting to changing market conditions and optimizing returns for its investors by not being restricted to CLOs of a specific maturity.
