Janus Detroit Street Trust-Janus Henderson B-BBB CLO ETF

JBBB is an actively managed fund of floating-rate collateralized loan obligations (CLOs) of varying maturities, rated between BBB+ and B- from global issuers.

Eagle Point Credit

Eagle Point Income Company Inc

Janus Henderson AAA CLO ETF

Oxford Lane Capital

XAI Octagon Floating Rate & Alternative Income Term Trust

The Fed's revised guidance for only two rate cuts in 2025 caused market panic, despite a current rate cut to 4.25-4.5%. Floating rate instruments like CLOs remain attractive due to their high-yield and low volatility, especially with rates staying above 4%. I identify one ETF and two CEFs for investors looking to take advantage of this panic and new course for the Fed.

Three Buys In This Fed-Fueled Sell Off

VanEck Fallen Angel High Yield Bond ETF

Alpha Architect 1-3 Month Box ETF

Angel Oak Income ETF

Panagram Bbb-B Clo Etf

iShares Fallen Angels USD Bond ETF

iShares Investment Grade Bond Factor ETF

WisdomTree Bloomberg Floating Rate Treasury Fund

The largest bond ETFs are almost exclusively index funds focusing on the broader bond market, or on specific bond sub-asset classes. These ETFs are reasonable investments, but investors can do much better than reasonable. Lots of ETFs offer higher yields, returns, and risk-adjusted returns than these larger ETFs, with extra advantages to boot.

The Largest Bond ETFs Are Good, But These ETFs Are Better

iShares Edge MSCI Min Vol Global ETF

SPDR Bloomberg 1-3 Month T-Bill ETF

Vaneck CLO ETF

iShares 7-10 Year Treasury Bond ETF

JPMorgan Equity Premium Income ETF

JPMorgan Nasdaq Equity Premium Income ETF

iShares 0-3 Month Treasury Bond ETF

US Treasury 3 Month Bill Etf

iShares 20+ Year Treasury Bond ETF

iShares Edge MSCI Min Vol USA ETF

This article covers a five-ETF portfolio built to replace and beat out a traditional 60/40. This portfolio could be built by a DIY investor with ease. It would be simple to monitor and rebalance. The goal is to create a >4% yield while providing as much or more safety than a traditional 60/40.

5 ETFs To Retire With In 2025

Janus Henderson B-BBB CLO ETF offers a high dividend yield of 7.7%, making it a reliable income source, especially in a low-return market environment. The ETF's diverse portfolio of B to BBB rated CLO debt investments mitigates sector-specific risks and benefits from floating interest rates. Historical data shows CLO default rates have remained low, suggesting the perceived risk of JBBB is overblown.

JBBB: Perceived Risk Is Overblown

Blackrock AAA CLO ETF

Invesco AAA CLO Floating Rate Note ETF

Palmer Square CLO Senior Debt ETF

Palmer Square Credit Opportunities ETF

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

CLOs have several tranches. Equity tranches are the riskiest ones, but also have the highest yields, and strongest potential returns. Debt tranches are safer and lower-yielding, some significantly so, some moderately so.

CLO Debt ETFs Or CLO Equity CEFs: Which Are Best For Income Investors And Retirees

The JBBB ETF gives investors access to BBB-B rated CLO debt tranches. The JBBB ETF has benefited from credit spreads collapsing to cycle-lows, driving strong performance in the last few months despite elevated credit defaults. However, recent weak economic data is spurring a rapid re-pricing of credit risk which may act as a headwind for the JBBB ETF.

JBBB: Time For A Pause?

Equities are down, due to bearish sentiment, mediocre economic news, and the unwinding of the Japanese carry trade. High-yield bonds and senior loans are seeing some pain too, albeit much reduced. CLO ETFs keep chugging along, without significant losses or underperformance.

CLOs In The Current Market Selloff

Avantis International Small Cap Value ETF

Avantis U.S. Small Cap Value ETF

Vanguard Total Bond Market ETF

Capital Group Dividend Value ETF

Pacer US Cash Cows 100 ETF

iShares iBoxx $ Investment Grade Corporate Bond ETF

Global X MLP & Energy Infrastructure ETF

Cohen & Steers Quality Income Realty Fund

Vanguard Small Cap Value ETF

Vanguard Real Estate ETF

Vanguard Value ETF

Vanguard Total International Stock ETF

Vanguard International High Dividend Yield ETF

Energy Select Sector SPDR Fund

Undervalued industries, regions, and equity market segments offer investors the potential for strong, market-beating returns. There are ETFs tracking most of these. An overview of the cheapest sectors, and ETFs tracking these, follows.

Most Undervalued Asset Classes, Equity Industries, Segments, And Regions - 2H2024

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?

It is prudent to consider risk management in high-yield investments during a potential market correction. JBBB offers lower risk CLO investment with 7.8% yield, suitable for a cash-like alternative. CLOs offer high yield with low risk due to structural protections, JBBB provides one attractive risk-reward alternative.

JBBB: Balancing Risk Vs. Reward

JAAA and JBBB are both actively-managed ETFs investing in senior loan CLO tranches. JBBB focuses on BBB-rated tranches, CLOZ an even mix of BBB and BB. Both funds are broadly similar, with strong yields and performance track-records, and low volatility. There are some important differences between these, however.

JBBB Vs. CLOZ: Which High-Yield CLO ETF Is Best For Income Investors?

CLO ETFs offer investors strong yields with little credit or interest rate risk. These are variable rate ETFs, and should see declining dividends as the Fed cuts rates. I still think they are buys, for three key reasons.

3 Reasons CLO ETFs Are A Buy, Even If The Fed Cuts

Janus B-BBB Clo ETF JBBB is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 8.78% from its 52-week low price of $44.97/share.

Mortgage-Backed ETF (JBBB) Hits New 52-Week High

Investment-grade bonds offer investors strong yields with low credit risk. A couple of ETFs offer exposure to these securities with some added benefits, including potential tax advantages and above-average yields. JBBB, CARY, and BOXX look like particularly strong ETFs in this space. A quick overview of these follows.

3 Investment-Grade ETF Buys, With Yields Up To 8.0%

The Janus Henderson B-BBB CLO ETF offers exposure to U.S. collateralized loan obligations within the category of securitized fixed income securities. The fund has a distribution yield of 8.1% and has outperformed traditional bond ETFs with a return of 13% over the past year. We advise caution at the current level considering historically tight credit spreads, and the potential for declining interest rates making fixed-rate debt more attractive.

JBBB: 2 Reasons We're Avoiding This 8.1% Yield B-BBB CLO ETF

Collateralized loan obligations, or CLOs, are complex financial instruments consisting of a pool of loans, offering a way to invest in corporate debt with a mechanism to mitigate interest rate risk. The Janus Henderson B-BBB CLO ETF provides access to floating-rate CLOs and is a unique investment opportunity for individuals and institutions. The JBBB fund offers diversification potential and floating rate exposure, but investors should be aware of the higher credit risk associated with B to BBB-rated CLOs.

JBBB: A Good Fund To Pair Against Bonds

Golub Capital BDC

Valley National

Zions Bancorp

The consensus is turning against floating-rate securities but a move away from them is much too soon in our view. Recent data, such as strong payrolls and increased average hourly earnings, suggests that the Fed may take time to kickstart the rate cutting cycle. Also, markets have already priced in substantial rate cuts, leading to a significant drop in long-term rates, creating a potential risk for a back-up in longer-term rates.

9-11% Yielding Floating-Rate Securities For A Slow-Go Fed

Sustained core inflation suggests an interest rate pivot isn't a given. However, we think the probability of a mid-to-late 2024 pivot remains high.

JAAA Vs. JBBB: Opting For Positive Duration And High Quality

VanEck Vectors BDC Income ETF

FlexShares High Yield Value-Scored Bond Index Fund

ETFs offer investors diversified exposure to different asset classes, including U.S. and international equities, fixed-rate and variable rate bonds. Within each market sub-segment some ETFs offer particularly compelling yields. A short, curated overview of some of these ETFs follows. Yields range from 5% - 10%.

Higher-Yield ETFs By Asset Class

SPDR Portfolio High Yield Bond ETF

On Seeking Alpha, I focus on dividend ETFs targeted towards income investors and retirees. Dividend ETFs focusing on bonds and fixed-income securities have seen significant dividend growth these past two years. Some offer incredibly compelling yields. Of these, five funds stand out. A quick look at these follows.

Juan's Top Dividend ETFs For 2024

JBBB invests in CLO tranches of senior secured loans, focusing on BBB tranches. The fund yields 7.9% with below-average credit risk, a strong value proposition and risk-return profile. The fund has benefited from rising rates over the last few years, and rate cuts could impact the fund going forward.

JBBB: BBB CLO ETF, Growing 8.1% Yield, Strong Risk-Adjusted Returns

Janus Henderson Mortgage-Backed Securities ETF

Janus Henderson Short Duration Income ETF

Janus Henderson Securitized Income ETF

Janus Henderson Investors has launched an active ETFs that covers almost the entire U.S. investable securitized market. The Janus Henderson Securitized Income ETF (NYSE Arca: JSI) seeks high income by investing across the U.S. securitized market.

Janus Henderson Launches Active Securitized Income ETF

The Janus Henderson CLO ETFs offer investors opportunities to invest in higher spread, lower risk loans. Rising default rates are affecting credit differently across the board, and CLOs show strength that other fixed income products have not. The comparison to investment grade corporate bonds shows CLOs as clear winners, with quality credit shining above lower quality.

JAAA & JBBB: Why I'm Still Favoring Quality Credit

Apollo Senior Floating Rate Fund

Franklin Senior Loan ETF

iShares Floating Rate Bond ETF

Floating rate securities have strong yields, low duration, and have significantly outperformed YTD. There are several strong floating rate funds available to investors. Credit risk varies, but there are options with minimal risk and high yields in the floating rate space.

News for Janus Detroit Street Trust-Janus Henderson B-BBB CLO ETF ETF (JBBB)