Nuveen AA-BBB CLO ETF (NCLO)

The Nuveen AA-BBB CLO ETF (NCLO) is an actively managed fixed income fund from Nuveen that invests in collateralized loan obligations. CLOs are securitized pools of senior secured loans made to companies, divided into tranches with different levels of credit priority.

The fund focuses on CLO debt tranches rated in the AA to BBB range, sitting between the top-rated senior tranches and the lower-rated mezzanine and equity layers. CLO debt typically pays floating-rate coupons, so income tends to adjust with short-term interest rates.

Nuveen's portfolio managers select individual CLO tranches based on manager quality, collateral, structure and relative value rather than tracking an index.