Loading…
Loading…
As credit spreads narrow, fewer and fewer high-yield ETFs are compelling buys. There are exceptions, and I'll be showcasing three of these in this article: CEFS, CLOZ, and JEMB. CLOZ's CLO portfolio provides the highest 7.3% dividend yield and strongest risk-adjusted returns.
Collateralized loan obligation ETFs have become one of the fastest-growing corners of fixed income by offering floating-rate coupons, historically low default rates, and yields that outpace investment-grade corporates.
While most bond funds braced for a rate environment that punished them, one ETF was quietly built to profit from it. Understanding what sits inside that fund reveals whether the yield it pays is a reward or a trap.
Collateralized loan obligations (CLOs) are securitized portfolios of corporate loans divided into tranches by risk profile. For many retail investors, CLOs can be foreign and uncomfortable, but the potential for attractive yields, floating-rate income, and diversification is strong.
Federal Reserve hikes are increasingly likely, with inflation increasing and unemployment stable. Lots of investments and ETFs should outperform during a period of rising rates. I'll be giving a quick rundown of four such ETFs in this article. Funds vary in risk, from cash ETFs to riskier choices, with the possibility of outstanding gains.
With Fed rates stabilizing, and the market turning hawkish, variable rate investments deserve another look. The Eldridge BBB-B CLO ETF (CLOZ) focuses on variable rate BBB-BB CLOs. It sports an above-average 7.0% dividend yield, and has outperformed most bonds on an absolute and risk-adjusted basis.
Farther Finance Advisors LLC lifted its position in shares of Eldridge BBB-B CLO ETF (NYSEARCA:CLOZ) by 271.0% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 37,842 shares of the company's stock after buying an additional 27,641
Eldridge BBB-B CLO ETF (NYSEARCA:CLOZ - Get Free Report) was the recipient of a large growth in short interest in February. As of February 27th, there was short interest totaling 4,536,418 shares, a growth of 14.5% from the February 12th total of 3,961,683 shares. Approximately 15.8% of the shares of the company are sold short.
SEC filings for CLOZ aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.