Panagram AAA CLO ETF

CLOX

Market cap $226M

Eldridge AAA CLO ETF offers exposure to AAA-rated CLOs, providing capital preservation and a 5.4% yield for conservative, income-focused investors. CLOX's low risk profile is supported by a history of zero defaults in AAA-rated CLOs, making it attractive during periods of market volatility and uncertainty. While CLOX underperforms traditional equity ETFs like SPY and slightly lags peers JAAA and PAAA, its stable monthly payouts and low fees remain appealing.

Janus Henderson AAA CLO ETF remains my top pick for AAA CLO ETFs due to its larger AUM, longer track record, and better portfolio transparency. Eldridge AAA CLO ETF earns a Hold rating; while it offers some advantages, it lacks the history, size, and data transparency I prefer in a core holding. Both ETFs offer attractive yields, but recent distribution trends are inconsistent and may overstate future income for investors.

Fixed income investors who want to diversify their portfolios in a challenging market environment shouldn't overlook CLOs. Danielle Gilbert, managing director at Eldridge Capital Management, discussed the value of CLOs in investment portfolios with VettaFi's Todd Rosenbluth in the recent Income Investment Strategy Symposium.

Fixed income investors who want to diversify their portfolios in a challenging market environment shouldn't overlook CLOs. Danielle Gilbert, managing director at Eldridge Capital Management, discussed the value of CLOs in investment portfolios with VettaFi's Todd Rosenbluth in the recent Income Investment Strategy Symposium.

Rising tariff turmoil has sparked a run from credit-sensitive instruments, with escalating trade tensions threatening economic stability. Wednesday's GDP print stoked recessionary fears when it showed the U.S. economy contracted for the first time since early 2022.

Panagram AAA CLO ETF is a new, actively managed fund investing solely in AAA CLOs, with $100 million in AUM and a 20 bps expense ratio. Retail investors should be agnostic among AAA CLO ETFs, while institutional investors prefer larger funds for liquidity and block trading capabilities. CLOX's performance aligns with its cohort, but a recession may reveal performance differences due to varying manager strategies and market conditions.

CLO ETFs remain an attractive opportunity for investors in 2025. A recent poll during VettaFi's 2025 Market Outlook Symposium showed many advisors see CLOs as a compelling opportunity for next year.

On this week's episode of ETF Prime, Host Nate Geraci was joined by VettaFi Senior Research Analyst Zeno Mercer to discuss the artificial intelligence field and AI-related ETFs. Afterward, Geraci welcomed John Kim, Panagram CEO & CIO, to discuss his firm's CLOs ETFs.

A changing interest rate narrative prompted many advisors and investors to reevaluate their bond exposures this month. Asset managers stepped in to offer their perspectives on the changing market dynamics and where the risks and opportunities lie in the 2024 Fixed Income Symposium hosted by VettaFi.

Fixed income ETFs gathered $51 billion of new money in the first quarter. This represented 26% of the industry's net inflows.