CLOZ
Eldridge BBB-B CLO ETF
📎 Investment Objective
The Eldridge BBB-B CLO ETF (CLOZ) seeks to provide exposure to a portfolio of collateralized loan obligations (CLOs) that are rated BBB or B by major credit rating agencies.
Overview
ETF tracking Eldridge BBB-B CLO ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The Eldridge BBB-B CLO ETF (CLOZ) seeks to provide exposure to a portfolio of collateralized loan obligations (CLOs) that are rated BBB or B by major credit rating agencies.
🎯 Investment Strategy
The fund invests primarily in a diversified portfolio of CLO tranches that are rated BBB or B. The portfolio is actively managed to maintain exposure to this credit quality range while seeking to generate current income.
✨ Key Features
- Provides access to the CLO market, which is typically only available to institutional investors
- Focuses on the BBB and B rated tranches of CLOs, which aim to offer higher yields than higher-rated tranches
- Actively managed portfolio to maintain the target credit quality exposure
- Low expense ratio of 0.00%
⚠️ Primary Risks
- Credit risk: The fund is exposed to the creditworthiness of the underlying CLO issuers and the risk of default or downgrade
- Interest rate risk: CLO values may be negatively impacted by rising interest rates
- Liquidity risk: The CLO market can be less liquid than other fixed income markets, which may affect the fund's ability to sell holdings
- Concentration risk: The fund's focus on a specific asset class (CLOs) means it may be more volatile than a more diversified fund
👤 Best For
This ETF may be suitable for investors seeking exposure to the higher-yielding segments of the CLO market as part of a diversified fixed income allocation. It may be most appropriate for investors with a higher risk tolerance and a longer investment horizon.