BlackRock has just unveiled the expansion of their fixed-income ETF suite with the launch of the BlackRock AAA CLO ETF (CLOA). CLOA plans to follow a portfolio of U.S. dollar-denominated AAA-rated collateralized loan obligations (CLOs) which is a bundle of loans that are below investment grade rank. CLOs are usually investment grade though due to credit enhancements and diversification.
ETF Newz Says:
CLOs have mainly been offered to institutional investors but have been offered in a few ETFs now to solid success.