Core Insights - The article discusses the growing interest in collateralized loan obligations (CLOs) and the recent trend of launching exchange-traded funds (ETFs) that invest in CLOs, highlighting their appeal due to high yields in a rising interest rate environment [2][3]. Group 1: Market Trends - Issuers are increasingly entering the CLO ETF market, with Janus Henderson and Reckoner Capital Management recently proposing new CLO strategies [2]. - The appeal of CLO ETFs is attributed to their high yields compared to other bond funds, particularly during a period of high interest rates [2][3]. Group 2: Investment Strategies - Janus Henderson's new fund will focus on AA- and A-rated CLOs, which carry higher risk than AAA-rated bonds but offer the potential for higher returns [3]. - The first CLO ETF launched by Janus Henderson, JAAA, provides access to a diverse range of CLOs, allowing investors to benefit from corporate loan repayments [3]. Group 3: Performance Metrics - The three largest CLO ETFs currently include Janus Henderson's JAAA with approximately $25 billion in assets and a year-to-date increase of 3.8%, PGIM's PAAA with $4.5 billion in assets and a 4.3% increase, and iShares' CLOA with $1.3 billion in assets and a 4.2% increase [5]. Group 4: Risk Considerations - There is a noted risk associated with investing in lower-grade loans within CLOs, and investors are advised to conduct thorough due diligence, particularly with smaller CLO names [4].

Core Insights - The CEF/ETF Income Laboratory manages portfolios targeting approximately 8% yields through closed-end funds (CEFs) and exchange-traded funds (ETFs) to simplify income investing [2] - CLO ETFs, which invest in collateralized loan obligations, provide above-average dividend yields and have outperformed fixed-rate peers since inception, despite some recent dividend cuts due to Federal Reserve actions [2] Group 1: Investment Strategy - The service focuses on high-yield opportunities in the CEF and ETF space, catering to both active and passive investors of varying experience levels [2] - Most holdings in the CEF/ETF Income Laboratory are monthly payers, which facilitates faster compounding and steady income streams [2] Group 2: Analyst Background - Juan de la Hoz has extensive experience in fixed income trading, financial analysis, and operations, with a focus on dividend, bond, and income funds, particularly ETFs [3]