The ICLO ETF, an actively managed exchange-traded fund, is focused on achieving its investment objective by investing primarily in floating-rate note securities issued by collateralized loan obligations (CLOs) with a minimum AAA rating from a recognized statistical rating organization (NRSRO) at the time of purchase. This ETF offers investors exposure to CLOs, which are trusts that issue debt securities backed by a pool of loans, including senior secured loans, senior unsecured loans, and subordinate corporate loans. With Invesco Senior Secured Management, Inc. serving as its sub-adviser, the ICLO ETF may also internally assign ratings to certain unrated CLO securities to determine their credit quality, enabling flexibility in its investment strategy. Additionally, the fund may invest up to 15% of its net assets in below AAA-rated CLO securities with a minimum AA rating or an equivalent rating assigned by the sub-adviser, further diversifying its portfolio.
While the primary focus of the ICLO ETF may center around floating-rate note securities issued by collateralized loan obligations (CLOs), dividend distributions are an important aspect to consider. The fund typically seeks to distribute dividends to investors in accordance with its investment strategy. These distributions are influenced by the performance of the underlying CLOs and their credit quality. Additionally, ICLO may invest in below AAA-rated CLO securities, but with a minimum rating of AA at the time of purchase or deemed of comparable credit quality by the sub-adviser, providing a potential source of income for investors seeking a balance between fixed-income securities and dividend returns.
ICLO aims to achieve its investment objective by primarily investing in floating rate note securities issued by collateralized loan obligations (CLOs) rated AAA or equivalent by a nationally recognized statistical rating organization (NRSRO) at the time of purchase. These CLOs consist of pools of loans, including domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, which may include below investment grade or unrated loans. The ETF may also invest in CLO securities that are unrated, with the sub-adviser assigning internal ratings if necessary. ICLO can allocate up to 15% of its net assets in CLO securities with a minimum rating of AA or equivalent, while foreign currency-denominated CLO securities may constitute up to 20% of its holdings. The fund focuses on broadly syndicated loans, but it may invest up to 15% of its net assets in middle-market CLOs. With a combination of macroeconomic-driven and fundamental approaches, ICLO provides exposure to the CLO market for investors seeking such assets in their portfolios.
The correlation aspect of the Invesco AAA CLO Floating Rate Note ETF is not publicly known at this time. Correlation data for this ETF may vary depending on its portfolio composition and market conditions. To gain insights into ICLO's correlations with other assets and sectors, investors can utilize the ETF Insider web app. This tool provides a simple visualization of correlations and offers deep and interesting data for various US ETFs, helping investors make informed decisions and identify potential overlap within their portfolios.
The ICLO ETF (ICLO) primarily focuses on the Collateralized Loan Obligation (CLO) sector. This actively managed exchange-traded fund seeks to achieve its investment objective by investing at least 80% of its net assets in floating rate note securities issued by AAA-rated CLOs. CLOs are trusts that issue debt securities collateralized by a pool of loans, including senior secured loans, senior unsecured loans, and subordinate corporate loans. The fund may also invest in below AAA-rated CLO securities with a minimum rating of AA or equivalent, and it may allocate up to 20% of its net assets to CLO securities denominated in foreign currencies. ICLO aims to provide investors with exposure to the CLO market while maintaining a diversified portfolio strategy managed by Invesco Senior Secured Management, Inc., utilizing both top-down macroeconomic analysis and a fundamental bottom-up approach.
The iShares iBonds 2026 Term Corporate ETF (ICLO) exposure is tailored to provide investors with a targeted approach to fixed-income investments. ICLO focuses on a portfolio of floating-rate note securities issued by collateralized loan obligations (CLOs) that are rated AAA (or equivalent by a nationally recognized statistical rating organization). This ETF allows investors to gain exposure to the CLO market, which comprises a diversified pool of loans, including senior secured loans, senior unsecured loans, and subordinate corporate loans. ICLO''s investment strategy also includes the option to invest in CLO securities denominated in foreign currencies, offering some degree of international diversification within the fixed-income space.
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