Nov. 02, 2025 10:15 AM ETVanEck AA-BB CLO ETF (CLOB), , , , , , , , , , , , , , , , , , , , , , ,
Summary
- The VanEck AA-BB CLO ETF (CLOB) offers expos…
Nov. 02, 2025 10:15 AM ETVanEck AA-BB CLO ETF (CLOB), , , , , , , , , , , , , , , , , , , , , , ,
Summary
- The VanEck AA-BB CLO ETF (CLOB) offers exposure to mezzanine tranches of CLOs, targeting AA-BB ratings for higher yield and moderate risk.
- CLOB yields 6%-plus with strong distribution coverage (1.32x NII/distributions), monthly payouts, and a portfolio focused on investment-grade CLOs.
- Compared to equity-focused CLO funds, CLOB provides lower yield but significantly better price stability and total returns, with less downside risk.
- Currently rated Hold due to its near-52-week high price, consider adding CLOB on a market pullback for income-focused portfolios.
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Do you have any CLO exposure in your portfolio?
Collateralized loan obligations, “CLOs,” are “securitized pools of senior secured loans, which have multiple tranches of debt with different ratings and varying levels of subordination. Cash flows are paid sequentially starting with senior most tranches, while losses
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