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See exactly how CLOZ's revenue becomes profit — a Sankey that traces revenue (and its reported segments) through gross profit, operating expenses, and net profit, with the year-over-year change on every line.
The same diagram the Chart Builder draws, right on the Summary tab. Upgrade to unlock it for CLOZ and 80,000+ other tickers.
This actively managed exchange-traded fund (ETF) aims to achieve its investment goal by primarily allocating its capital. Under typical circumstances, it commits a minimum of 80% of its net assets—including any funds borrowed for investment purposes—to collateralized loan obligations (CLOs). Upon acquisition, these CLOs are required to possess a credit rating between BBB+ and B-, or an equivalent assessment from a nationally recognized statistical rating organization (NRSRO). Importantly, the fund is structured as non-diversified.
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.