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Specialized Bond ETFs Are Taking Off as Janus Fund Tops $1 Billion and More Line Up

  • CLO funds gain popularity, outperform corporate bond ETFs
  • Top-rated floating-rate securities are attractive: Schawel
Updated on

A niche corner of the fixed-income ETF industry is growing quickly as investors and issuers alike turn to high-grade debt with the potential to outperform in the interest-rate storm. 

The Janus Henderson AAA CLO exchange-traded fund (ticker JAAA), backed by top-rated bonds known as collateralized loan obligations, hit a record $1.2 billion of assets this week after launching in October 2020. Meanwhile, the pipeline is building: Applications for the AXS First Priority CLO Bond ETF and the VanEck CLO ETF landed with U.S. regulators last month, with the AXS fund representing an acquisition of the AAF First Priority CLO Bond ETF (AAA).