NCLO
Nuveen AA-BBB CLO ETF
📎 Investment Objective
The Nuveen AA-BBB CLO ETF (NCLO) seeks to provide investment exposure to a diversified portfolio of collateralized loan obligations (CLOs) that are rated AA or BBB.
Overview
ETF tracking Nuveen AA-BBB CLO ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The Nuveen AA-BBB CLO ETF (NCLO) seeks to provide investment exposure to a diversified portfolio of collateralized loan obligations (CLOs) that are rated AA or BBB.
🎯 Investment Strategy
The fund invests primarily in CLOs that are rated AA or BBB, which are typically considered to have a lower risk profile than lower-rated CLOs. The fund aims to provide investors with income and the potential for capital appreciation by investing in this segment of the CLO market.
✨ Key Features
- Exposure to a diversified portfolio of AA and BBB-rated CLOs
- Potential for income generation and capital appreciation
- Low expense ratio of 0.00%
- Relatively new fund with limited performance history
⚠️ Primary Risks
- Credit risk: The fund is exposed to the creditworthiness of the underlying CLO issuers
- Interest rate risk: CLO values may be affected by changes in interest rates
- Liquidity risk: The CLO market may experience periods of reduced liquidity
- Lack of performance history: The fund's limited track record makes it difficult to assess long-term performance
👤 Best For
This ETF may be suitable for investors seeking exposure to the higher-quality segment of the CLO market as part of a diversified fixed-income portfolio. Investors should have a higher risk tolerance and a longer-term investment horizon to account for the potential volatility and lack of performance history.