Blackrock AAA CLO ETF

CLOA is an actively managed fund that invests in USD-denominated CLOs that are rated AAA.

CLO ETFs offer retail investors access to high-yield, floating-rate investments with historically low default rates, outperforming similarly rated corporate bonds. Investors should choose CLO ETFs based on their risk tolerance; AAA-rated options like CLOA and JAAA for conservative profiles and JBBB for investors with higher risk tolerances. Despite strong historical performance, caution is advised due to potential economic downturns and credit spread risks; I recommend AAA-rated CLOs for stability.

CLOA: CLO ETFs And How To Manage Risk

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Palmer Square CLO Senior Debt ETF

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Several firms are planning to launch collateralized loan obligation (CLO) ETFs, enhancing options for investors. CLOs have provided attractive risk-adjusted returns over the past decade, especially when compared to other fixed income investments.

CLO ETFs in Focus: Virtus, Blondbloxx, Nuveen Plot Entrance

The BlackRock AAA CLO ETF invests in AAA-rated CLO securities, providing safety and attractive yields. The CLOA is almost identical to JAAA in terms of performance. However, its smaller size means the fund is less liquid. With the economy slowing, I believe investors should high-grade their portfolios with the CLOA or JAAA ETFs.

CLOA: Viable Alternative To JAAA

AXS First Priority CLO Bond ETF

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.

Is CLO Outperformance Set To Continue?

John Hancock Financial Opportunities Fund

The financial sector is still out of favor due to rate shock, income is pouring into the willings' coffers. You can invest in banks, bank-like institutions, or both. Don't neglect this sector. Lower risk, higher yields, a retiree's dream.

3 Bank Funds To Buy For Your Retirement Income

CLOs offer higher yield and lower volatility than traditional fixed-rate bonds, particularly in rising rate environments. BlackRock AAA CLO ETF consists of high-quality AAA-rated CLOs managed by experienced credit professionals with active exposure. CLOA provides strong yield and diversification, but investors should be aware of potential credit risks and liquidity issues.

CLOA: A Question Of Fixed Vs. Floating

CLOA focuses on AAA-rated CLO tranches, which have extremely low credit and rate risk. It sports an above-average 6.3% yield and has outperformed since inception. It is also very similar to other AAA-rated CLO ETFs in the market, including JAAA.

CLOA: AAA-Rated CLO ETF, Good 6.1% Yield, Strong Performance

Launched in 2023, the BlackRock AAA CLO ETF has seen slow investor adoption compared to its competitor JAAA. Both offer similar 1-year total returns (~9.8%) and low volatility due to their AAA CLO holdings. The fund has an attractive 6.54% yield with low credit risk and volatility. CLOA has lower fees (20 bps) when compared to JAAA (22 bps).

CLOA: The Forgotten AAA CLO Fund From BlackRock

CLOA is a new fund from BlackRock. The vehicle focuses on AAA CLO paper.

CLOA: 6% Yield From This AAA Fund

Ares Dynamic Credit Allocation Fund

Oxford Lane Capital

Oxford Lane Capital Corp 6.75 % Cum Red Pfd Shs Series -2024-

The broader CLO sector remains an attractive income destination for not just its high yields but also its historical resilience. We take a look at the different ways investors can choose to allocate to the sector across the risk and yield spectrum.

Our 8-10% Yielding Picks And Pans In The CLO Sector

KraneShares CSI China Internet ETF

Defiance Digital Revolution ETF

Meanwhile, closures are off to a strong start, with 26 from Invesco alone.

January ETF Launches Are the Fewest Since 2020

The new funds include an ETF tracking high quality collateralized loan obligations from BlackRock.

News for Blackrock AAA CLO ETF ETF (CLOA)