AAA

📎 Investment Objective

The AAA - Alternative Access First Priority CLO Bond ETF seeks to provide exposure to first priority collateralized loan obligation (CLO) bonds, which are debt securities backed by a diversified pool of corporate loans.

✨ Key Features

• Focuses on first priority CLO bonds, which are considered relatively low-risk debt securities within the CLO market
• Provides exposure to the senior-most tranche of CLO structures, which are designed to be the least risky portion of a CLO
• Seeks to generate current income through the yield on the underlying CLO bonds
• Relatively low expense ratio of 0.00%

⚠️ Primary Risks

• Credit risk: The fund is exposed to the creditworthiness of the underlying corporate loans that make up the CLO collateral
• Interest rate risk: CLO bond prices may fluctuate as interest rates change, which can impact the fund's net asset value
• Liquidity risk: The CLO bond market can be less liquid than other fixed income sectors, which may affect the fund's ability to sell holdings
• Concentration risk: By focusing solely on first priority CLO bonds, the fund has limited diversification across fixed income sectors

👤 Best For

The AAA - Alternative Access First Priority CLO Bond ETF may be suitable for investors seeking current income and relatively low-risk exposure to the senior-most tranche of the CLO market. Given the fund's narrow focus and lack of performance history, it is best suited for investors with a longer-term time horizon and a moderate risk tolerance.