JAAA: Underperformance Corrected, Warning Stays

2025-05-16 06:06:42 ET

Summary

• Janus Henderson AAA CLO ETF has experienced an unusual year, marked by significant market fluctuations and investor sentiment shifts.
• The ETF's performance has been influenced by macroeconomic factors, including interest rate changes and credit market conditions. There has been a lot of commentary on "widening credit spreads."
• Despite volatility, JAAA's high-quality collateralized loan obligations offer a compelling risk-reward profile for long-term investors, especially if.
• The recommendation is to consider a move to T-bills and diversifying across other AAA CLO funds if the risks that showed themselves in Q1 prove too risky for you.

Introduction

It's been an unusual year for the Janus Henderson AAA CLO ETF (JAAA), as noted in my last update on it in March. Essentially, the fund had a rough patch where it was volatile, causing it to underperform its peers and the benchmark index it tracks....

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