Fidelity Jumps into Growing CLO ETF Market

Core Viewpoint - The rise of collateralized loan obligation (CLO) exchange-traded funds (ETFs) is notable, with several companies launching new products to meet investor demand for income and diversification [2][4]. Industry Developments - Fidelity has recently entered the CLO ETF market, launching its CLO and AAA CLO funds, leveraging over 20 years of experience in issuing and investing in CLOs [4]. - Janus Henderson, the provider of the largest CLO ETF in the US market valued at $26 billion, has filed for a new AA-A CLO ETF [5]. - Reckoner Capital Management launched four new CLO funds, which include options for reinvesting dividends and annual distributions, catering to different investor cash flow needs [6]. Market Growth - The CLO ETF market in the US has grown to over $40 billion in assets as of January, up from $27 billion a year earlier, indicating significant inflows and interest [8]. - In 2025 alone, nearly $15 billion flowed into CLO ETFs, with over $3 billion in the last month, highlighting the increasing popularity of these investment vehicles [8]. - Out of the 27 CLO ETFs currently trading, 10 have been launched since 2025, reflecting a rapid expansion in this segment [8].