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.
BlackRock Launches New Actively Managed AAA CLO ETF
ETF Newz Says:
CLOs have mainly been offered to institutional investors but have been offered in a few ETFs now to solid success.