Principal CLO ETF (UUPP)

Principal CLO ETF (UUPP) is an actively managed exchange-traded fund that invests primarily in collateralized loan obligations (CLOs). CLOs are securitized pools of senior secured, floating-rate loans made to corporate borrowers, divided into tranches with different levels of credit priority.

The portfolio managers select CLO debt tranches based on credit research into the underlying loan pools, the structure of each deal and the track record of the CLO manager. Because CLO coupons generally reset with short-term interest rates, the fund's income tends to move with prevailing rates, and its interest rate sensitivity is typically lower than that of fixed-rate bond funds.

The fund is sponsored by Principal Asset Management, the investment arm of Principal Financial Group.