2024-04-23 14:20:29 ET
Summary
- CLO ETFs offer investors strong yields with little credit or interest rate risk.
- These are variable rate ETFs, and should see declining dividends as the Fed cuts rates.
- I still think they are buys, for three key reasons.
Long-time readers know I've been bullish on CLO ETFs for over a year , due to the strong, growing dividends and comparatively stable share prices that these funds offer. I'm bullish on most of these ETFs, but focus on the following three:
Fund Filings - Table by Author
When discussing these and other variable rate funds I sometimes get asked about potential Fed rate cuts. Although these would result in lower dividends for most CLO ETFs, I'm still quite bullish on these funds for three key reasons....
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For further details see:
3 Reasons CLO ETFs Are A Buy, Even If The Fed Cuts