Columbia AAA CLO ETF (AAAC)

The Columbia AAA CLO ETF is an actively managed fixed income fund sponsored by Columbia Threadneedle Investments. It invests primarily in the AAA-rated tranches of collateralized loan obligations (CLOs), the most senior slices of securitizations backed by pools of broadly syndicated senior secured loans made to companies.

Because CLO debt tranches typically pay floating rates that reset with short-term benchmark rates, the portfolio carries relatively little interest rate duration, and its returns come mainly from the income generated by these notes. The AAA position sits at the top of each deal's payment structure, so it is the first to be paid and the last to absorb losses from the underlying loans.

The managers select individual CLO tranches based on their analysis of collateral managers, deal structures and loan pools, and the fund trades on NYSE Arca under the ticker AAAC.