VanEck AA-BB CLO ETF (CLOB)

The VanEck AA-BB CLO ETF (CLOB) is an actively managed exchange-traded fund from VanEck that invests in debt tranches of collateralized loan obligations.

Collateralized loan obligations are securitizations backed by pools of senior secured loans to companies, and their debt is divided into tranches with different credit ratings. This fund focuses on tranches rated roughly between AA and BB, the middle of the CLO capital structure, seeking higher income than top-rated tranches while relying on the adviser's credit analysis. Because CLO debt generally pays floating rates, the fund has limited sensitivity to changes in interest rates.