Tcw Aaa Clo Etf (ACLO)

The TCW AAA CLO ETF is an actively managed fixed income fund from TCW Group, the Los Angeles-based investment management firm. It invests primarily in AAA-rated debt tranches of collateralized loan obligations, the most senior notes issued by securitizations backed by pools of senior secured corporate loans.

CLO tranches generally pay floating interest rates tied to short-term benchmarks, so the fund carries limited interest rate duration and derives most of its return from income. Senior AAA tranches are first in line for payments from the underlying loan pool and are protected by the subordinate tranches below them.

The managers choose individual CLO securities based on analysis of deal structure, collateral and CLO manager quality. The ETF trades on the NYSE under the ticker ACLO.