PAAA

📎 Investment Objective

The PGIM AAA CLO ETF (PAAA) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Bloomberg Barclays U.S. CLO AAA Index, which tracks the performance of U.S. dollar-denominated collateralized loan obligation (CLO) securities with a AAA credit rating.

✨ Key Features

• Provides exposure to the highest-rated tranche of the U.S. CLO market
• Seeks to replicate the performance of the Bloomberg Barclays U.S. CLO AAA Index
• Offers a low-cost, passively managed approach to investing in the CLO market
• Potential for stable income and low correlation to traditional asset classes

⚠️ Primary Risks

• Credit risk: The fund is exposed to the credit risk of the underlying CLO securities
• Interest rate risk: Changes in interest rates may affect the value of the fund's holdings
• Liquidity risk: The CLO market may experience periods of reduced liquidity, which could impact the fund's ability to sell securities
• Concentration risk: The fund's investments are concentrated in the CLO market, which may be subject to specific risks

👤 Best For

The PGIM AAA CLO ETF may be suitable for investors seeking exposure to the highest-rated segment of the CLO market as part of a diversified fixed-income portfolio. Investors should have a medium-term investment horizon and be comfortable with the risks associated with the CLO market.