iShares BBB-B CLO Active ETF Price & Performance (BCLO)

Collateralized loan obligation (CLO) ETFs with exposure to lower-rated debt are increasingly attracting investors. While AAA-rated CLO ETFs dominate the market, funds focusing on BBB to BB tranches are growing in popularity due to higher yields. Experts predict this trend will continue as investors seek diversification and attractive income opportunities.1

New tariff policies may impact corporations tied to CLOs, particularly those with international exposure. Rising costs could pressure profit margins for these businesses, potentially affecting credit coverage. Industry leaders remain optimistic about CLO ETFs, but caution is advised for investors exposed to globally reliant companies.1

CLO ETFs have transformed retail investing by providing access to institutional-grade assets. With over $25 billion in total assets, these funds offer diversification and high yields. Analysts emphasize the importance of distinguishing CLOs from CDOs, citing CLOs' strong historical performance and minimal default rates.1