Reckoner Yield Enhanced AAA CLO ETF

Frequently Asked Questions About RAAA

What does RAAA invest in?

The RAAA fund employs a leverage strategy, utilizing reverse repurchase agreements to achieve up to 50% additional exposure to U.S. dollar-denominated Collateralized Loan Obligations (CLOs). Its primary objectives are generating income and preserving capital, which it pursues by concentrating investments in AAA-rated CLO tranches. These tranches represent the most senior and highest-quality segments within a CLO structure, supported by diverse pools of underlying loans, often including leveraged loans. All eligible CLOs must carry an AAA rating or be determined to be of equivalent credit quality by the investment adviser. However, the fund has the flexibility to allocate a maximum of 20% of its assets to CLOs rated AA or A. The investment selection process follows a rigorous bottom-up methodology, assessing factors such as the expertise of the CLO manager, the specifics of the deal structure, the quality of the underlying collateral, projected cash flows, and market trading frequency. A particular emphasis is placed on identifying larger and more liquid transactions. The portfolio may also incorporate Exchange Traded Funds (ETFs) that align with similar investment objectives. The majority of the fund's holdings feature floating interest rates and are acquired from both initial issuance (primary) and existing market (secondary) sources. Allocation adjustments are made dynamically in response to prevailing market trends. Although classified as non-diversified, the fund mitigates concentration risk by capping investments in any individual CLO or CLO manager at 20% of its assets. This approach supports its twin goals of generating income and maintaining high credit quality.

What is the expense ratio of RAAA?

Reckoner Yield Enhanced AAA CLO ETF (RAAA) charges an expense ratio of 0.30%. This is the annual fee deducted from fund assets to cover management and operations.

What is RAAA's dividend yield?

RAAA's trailing-twelve-month yield is 5.00%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of RAAA?

Effective duration measures RAAA's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. RAAA's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of RAAA?

RAAA's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of RAAA?

Yield to maturity (YTM) is the total return you'd earn from RAAA if every bond in the portfolio is held to maturity at the current price. RAAA's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.