Reckoner BBB-B CLO ETF

RCLO

Market cap $29.9M

In a Q2 Market Outlook Symposium with TMX VettaFi, and John Kim, CEO of Reckoner Capital Management, it was noted that collateralized loan obligation (CLO) ETFs have captured roughly $6 billion in inflows year to date[1]. One of the notions discussed in the symposium is the “complexity premium” tied to CLOs.

Investor interest in collateralized loan obligations (CLOs) continues to expand in 2026. TMX VettaFi caught up with Reckoner Capital co-CIO Tim Wickstrom at ETF Exchange 2026 to get a pulse on the CLO ETF market, which is demanding an active mandate.

A common notion in the fixed income market surrounds rate decisions by the U.S. Federal Reserve as the primary pivot point for portfolio shifts. However, in the collateralized loan obligation (CLO) space, the rate conversation presents a different dynamic.

The March 2026 ETF Flash Flows report from State Street Investment Management revealed a fixed income market landscape defined by stubborn inflation and rising yields. The report highlighted record-breaking inflows into short-term fixed income instruments.

Investors searching for yield in 2026 may have reached a crossroads. They can accept the duration and default risks associated with high-yield corporate bonds.

When investors are looking to diversify their fixed income portfolios with collateralized loan obligations (CLOs) via ETFs, no two funds are the same. That also goes for funds that employ an active approach — such is the case with the Reckoner BBB-B CLO ETF (RCLO) and the iShares BBB-B CLO Active ETF (BCLO).

Before the advent of exchange-traded funds (ETFs), investing in collateralized loan obligations (CLOs) was limited to insurance companies, pension funds, sovereign wealth funds, and other institutional investors. In recent years, however, ETFs have significantly expanded access to CLOs.

The current market landscape is changing from persistent inflation with “higher-for-longer” interest rates to easing monetary policy. The installment of a new U.S Federal Reserve chairman could potentially change that narrative, which only adds to the uncertainty in the markets.

The announcement of a new U.S. Federal Reserve chairman has introduced additional uncertainty to the markets, particularly within the fixed income sector. To address potential income risk, investors may want to consider diversifying their portfolios with collateralized loan obligations (CLOs).

Reckoner Capital Management, an ETF provider whose product line targets the collateralized loan obligation (CLO) space, is expanding its lineup with four new funds to increase distribution flexibility.