BlackRock ETF Trust II iShares AAA CLO Active ETF

CLOA

Market cap $2.15B

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.

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.

CLOs are variable-rate securities with varying levels of risk. AAA CLOs are the highest-quality CLOs available and are broadly comparable securities to T-bills, with a somewhat higher yield and slightly higher realized volatility. The iShares AAA CLO Active ETF focuses on AAA-rated CLOs, with an above-average 5.0% yield, a generally stable share price, and an outstanding risk-return.

Inspirion Wealth Advisors increased its CLOA stake by 63,417 shares. The estimated transaction value was $3.3 million, based on the quarter's average price.

Adams Wealth Management sold 51,678 shares of CLOA Quarter-end position value decreased by $2.73 million, a figure reflecting both trading and market price movements Transaction represented a 0.6% change in 13F reportable AUM Post-trade holding: 193,352 shares valued at $10.00 million As of December 31, 2025, CLOA comprised 2.1% of Adams Wealth Management's reportable AUM, placing it outside the fund's top five holdings

Dividend stocks have sharply outperformed AI-related tech stocks since November 2025, reversing a multi-year trend. I see the rally in dividend ETFs like SCHD as overextended, prompting a pause in new purchases despite recent gains. AI is likely to benefit users more than makers, with sectors like banks, energy, and consumer staples positioned as early winners.

I view iShares AAA CLO Active ETF as a low-risk, income-focused holding ideal for defensive investors seeking capital preservation. CLOA's portfolio of AAA-rated, floating-rate CLOs delivers a stable 5.7% yield and strong resilience during market downturns, but offers limited upside in bull markets. The fund's short-dated maturities and lack of equity exposure minimize volatility but guarantee underperformance versus equity indices over extended periods.

O'Donnell Financial bought 131,914 shares of CLOA; trade size estimated at $6.83 million based on average quarterly pricing. Quarter-end position value rose by $6.82 million, a figure reflecting both new purchases and price changes.

Bought 499,926 shares; estimated trade size $25.87 million (based on average quarterly price). Position represents 3.17% of 13F reportable AUM.

Constructing a stable income portfolio in today's volatile market favors CLO bond ETFs with strong yield and minimal drawdown. My recent portfolio revision removed underperforming or volatile funds, and adding top-performing AAA CLO ETFs and a diversified alternative. PAAA, CLOB, and UYLD are highlighted for superior total return, low drawdown, and attractive yield in their respective classes, with UYLD offering a near-treasury risk profile but higher yield.