CLOI - CLOI: Delivering A 6.9% Yield With Low Volatility

2024-06-28 18:14:27 ET

Summary

• The VanEck CLO ETF (CLOI) is a fixed income exchange-traded fund. We covered this name right when it was issued with a 'Buy' rating, and assigned a 'Hold' in 2023.
• The ETF has delivered robust returns since its inception and hasn't experienced significant downturns.
• CLOI has outperformed AAA-only peers, offers high yield until Fed rate cuts, and has low volatility, making it a strong investment option.
• Despite holding a lower percentage of AAA rated holdings and including some A and BBB rated CLOs, the actual probability of default is minimal.

Thesis

The V anEck CLO ETF ( CLOI ) is a fixed income exchange-traded fund. We covered this name right when it was issued with a 'Buy' rating and encouraged readers to keep holding the name last year:

For further details see: