Franklin BSP CLO ETF (YCLO)

The Franklin BSP CLO ETF (YCLO) is an exchange-traded fund from Franklin Templeton that invests in collateralized loan obligations, managed with Benefit Street Partners, an alternative credit manager affiliated with Franklin Templeton.

Collateralized loan obligations are securities backed by pools of senior secured leveraged loans to companies, divided into tranches with different levels of credit priority. The fund is actively managed and draws on Benefit Street Partners' credit research to select CLO tranches. Because CLO coupons typically float with short-term rates, the asset class tends to carry limited interest-rate duration.

The fund offers access to structured credit within a standard ETF wrapper.