A Guide to Clo Etf Investment and Market Insights

Investing in a Clo ETF can be a great way to diversify your portfolio and gain exposure to a specific market or sector.

Clo ETFs are designed to provide long-term capital appreciation, with the ability to hold a basket of stocks that are expected to outperform the broader market.

The key to successful Clo ETF investment is to do your research and understand the underlying strategy and holdings.

By doing so, you can make informed decisions and potentially reap the rewards of a well-executed investment plan.

Clo ETFs are often used as a tactical tool to gain exposure to a specific market or sector, such as technology or healthcare.

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This ETF offers diversification potential by providing exposure to B to BBB-rated CLOs, which can help traditional fixed income portfolios.

The ETF has a floating rate exposure, which can limit the impact of rising rates.

Distribution Yield at NAV 12-Month is 7.65% as of 01/02/2025.

The 30-Day SEC Yield - With Waivers is 7.84% as of 12/31/2024.

The 30-Day SEC Yield - Without Waivers is also 7.84% as of 12/31/2024.

The ETF has a monthly distribution frequency.

The Inception Date is Jan 11, 2022.

The Total Net Assets as of 01/31/2025 are $1.80B.

The Gross Annual Expense Ratio is 0.50% as of the most recent prospectus.

The Net Annual Expense Ratio is 0.49% as of the most recent prospectus.

Here is a summary of the ETF's key features:

Let's take a closer look at the performance of CLO ETFs. The Palmer Square CLO Senior Debt ETF (PSQA) has shown impressive returns, with a 1.65% return in Q4 2024.

Here are the key performance metrics for the Palmer Square CLO Senior Debt ETF (PSQA):

The returns are based on the NAV (net asset value) and market price of the ETF, and are calculated since its inception on September 11, 2024. The performance data quoted represents past performance, and past performance does not guarantee future results.

If you're considering investing in a CLO ETF, diversification is a key benefit. B to BBB-rated CLOs can help diversify a traditional fixed income portfolio.

Floating-rate coupons can help limit the impact during periods of rising rates. This is because the interest payments adjust periodically, reducing the risk of a fixed rate bond falling in value.

The ETF's efficient structure provides exposure to CLOs rated from B to BBB, historically available only to institutional investors. This is a significant advantage for individual investors.

The distribution yield at NAV 12-Month is 7.65%, as of January 2, 2025. This indicates the potential for regular income from the investment.

Here's a summary of the ETF's distribution yields:

The ETF has a monthly distribution frequency, providing regular income to investors.

The total net assets of the ETF are $1.80B, as of January 31, 2025. This indicates a significant amount of investor interest in the fund.

The gross annual expense ratio is 0.50%, and the net annual expense ratio is 0.49%. These fees are relatively low, making the ETF an attractive option for investors.

The ETF is listed on the Cboe BZX Equities Exchange, with a CUSIP of 47103U753.

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The data and pricing of Clo ETFs are worth understanding, as they can impact your investment decisions.

The NAV of Clo ETFs is calculated using prices as of 4:00 p.m. eastern time.

Trading in Clo ETFs generally takes place from 9:30 a.m. to 4:00 p.m. eastern time.

You may pay more than the NAV when buying Clo ETF shares and receive less than NAV when selling them, because shares are bought and sold at current market prices.

The closing price for Clo ETF shares may not always be the same as the NAV, due to ongoing price discovery.

The date/time of the last trade may occur before 4:00 p.m. eastern time, which can result in a deviation between the closing price and the NAV.

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