What are Collateralised Loan Obligations (CLOs) and why are they rated AAA?

Collateralised Loan Obligations (CLOs) are structured investment vehicles that pool together a portfolio of corporate loans. The AAA rating signifies the highest credit quality tranche within these structures. This rating indicates a very low risk of default on the specific debt segment held by the ETF, although the underlying assets remain loans to companies with higher risk profiles than investment-grade bonds. Understanding this structure helps investors grasp the unique risk and return characteristics of CLO-focused funds.

What does 'Securitized Bond - Focused' mean in the context of these ETFs?

The category 'Securitized Bond - Focused' indicates that the ETF primarily invests in asset-backed securities, such as CLOs, rather than diversified government or corporate bonds. This means the fund's performance is tightly linked to the credit health of the specific loan pools and securitization market. Investors should be aware that this focus concentrates risk in a specific segment of the fixed-income universe, which may behave differently during economic stress compared to broader bond indices.

How do the expense ratios of CLOA and JAAA compare for long-term investors?

Both CLOA and JAAA charge an expense ratio of 0.20%, making their cost structures identical. Over time, this low fee minimises the drag on returns compared to higher-cost active fixed-income strategies. For a long-term investor, paying the same fee means the net outcome will depend on yield generation and capital preservation rather than fee differences. Investors should still consider how active management costs impact performance, but here, both funds offer similar cost efficiency for accessing AAA-rated CLO exposure.

What are the differences in dividend yield between CLOA and JAAA?

JAAA offers a dividend yield of 4.88%, while CLOA provides a slightly lower yield of 4.81%. Although the difference is minimal, it may appeal to investors focused on maximising immediate income. However, dividend yields fluctuate based on market conditions and fund performance. Investors should not assume higher yield guarantees better total returns, as yield does not account for potential capital gains or losses. Both funds distribute income generated from the underlying CLO assets, subject to tax and market variables.

How does the size of the fund impact liquidity for investors in CLOA and JAAA?

JAAA has net assets of $31.2 billion, significantly larger than CLOA's $2.3 billion. Larger funds often provide better liquidity, meaning it may be easier to buy or sell shares without impacting the price too much. This size advantage can lead to tighter bid-ask spreads for JAAA. While CLOA is backed by BlackRock, its smaller asset base might result in slightly less trading volume. Investors should consider liquidity needs if they plan to trade frequently or require large transactions in the secondary market.

Do CLOA and JAAA track a specific index or benchmark?

Neither CLOA nor JAAA tracks a specific index. Both are actively managed ETFs, meaning investment decisions are made by a portfolio manager rather than being automatically replicated from a benchmark. This active management approach aims to outperform or mitigate risks better than passive counterparts. However, it also means investors rely on manager skill and strategy execution. Without a benchmark, comparing performance is often done against similar funds or broader securitized bond indices, but the funds themselves do not follow a fixed index.

What are the inception dates of CLOA and JAAA and why do they matter?

CLOA was launched on 10 Jan 2023, while JAAA started on 16 Oct 2020. JAAA's longer history provides a more extended track record of performance, allowing investors to observe how the fund has navigated different economic conditions and market cycles. CLOA, being newer, has less historical data available for analysis. While past performance does not guarantee future results, a longer operational history can offer insights into the fund's stability and management effectiveness during various market phases.

Why is transparency about top holdings and sector weights not available for these funds?

For both CLOA and JAAA, detailed top holdings and sector weights are not available in the provided data. This is common for certain active ETFs where proprietary strategies are employed, or due to the complex structure of underlying CLO securities which hold thousands of loans. Lack of transparent breakdowns means investors must rely on general fund documentation and the issuer's disclosures. It limits the ability to assess specific loan exposure or concentration risks precisely, requiring trust in the issuer's risk management processes.

What risks are associated with investing in securitized bond ETFs like CLOA and JAAA?

Investing in CLO-focused ETFs exposes investors to credit risk, where borrowers default on underlying loans, and interest rate risk, as rising rates can affect bond prices. Although these funds hold AAA-rated tranches, the underlying assets are corporate loans which carry higher default risk than government bonds. Sector-specific downturns can also impact performance. Investors should understand that while AAA-rated tranches are senior and less risky, the funds are not equivalent to cash or government treasury bonds and may experience volatility.

How might an investor determine which fund aligns with their goals?

Investors seeking higher liquidity and a longer track record might find JAAA's $31.2 billion net assets and inception in 2020 relevant. Those preferring the established brand of BlackRock despite smaller assets might look at CLOA's $2.3 billion size and 2023 launch. Yield differences are minor (4.81% vs 4.88%). Both offer active management of AAA-rated CLOs. Goal alignment depends on individual preferences for fund size, operational history, and issuer, as both serve similar roles in diversified fixed-income portfolios.

CLOA vs JAAA

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare iShares AAA CLO Active ETF (CLOA) and Janus Henderson AAA CLO ETF (JAAA). This page examines fees, holdings, dividends, and how each fund tracks its market. Both offer exposure to AAA-rated collateralised loan obligations. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

CLOA

Metric

JAAA

0.20%

Expense Ratio

0.20%

4.81%

Dividend Yield

4.88%

$2.28B

Net Assets

$31.17B

416

Holdings

609

Jan 10, 2023

Inception Date

Oct 16, 2020

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Index Tracked

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Securitized Bond - Focused

Fund Category

Securitized Bond - Focused

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

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CLOZ vs JAAA

CLOZ vs JAAA compares fees and holdings. CLOZ has a 0.50% expense ratio. JAAA has 0.20%. Review dividends and tracking data for both funds today.

Investment Analysis

CLOA

Pros

CLOA offers a dividend yield of 4.81%, providing a solid income stream from AAA-rated collateralised loan obligations.
The fund charges a low expense ratio of 0.20%, keeping holding costs minimal for investors seeking secured credit exposure.
As an iShares product, CLOA benefits from BlackRock’s established reputation for liquidity management and operational robustness in the ETF market.

Considerations

With net assets of $2.3 billion, CLOA is significantly smaller than market leaders, potentially impacting daily trading volume and spread stability.
Launched in January 2023, the fund lacks a long-term track record, making it harder to assess its performance across diverse economic cycles.
Detailed top holdings and sector weights are not available, limiting transparency for investors who require precise breakdowns of underlying exposures.

JAAA

Pros

JAAA boasts net assets of $31.2 billion, ensuring high liquidity and tighter bid-ask spreads compared to smaller competitors in the same category.
The fund provides a slightly higher dividend yield of 4.88%, offering marginally better income potential for investors focused on cash distributions.
Established in October 2020, JAAA has a longer operational history than newer entrants, allowing for a more extended track record of management execution.

Considerations

Like its peers, JAAA does not make detailed top holdings or sector weights readily available, which may reduce transparency for detailed risk assessment.
The fund’s active management strategy means there is no specific index tracked, requiring investors to rely on manager skill rather than passive replication.
Despite its size, JAAA remains concentrated in securitized bonds, exposing investors to sector-specific risks without the diversification of broader fixed-income portfolios.

About CLOA and JAAA

CLOA (CLOA)

The iShares AAA CLO Active ETF (CLOA) offers investors exposure to the collateralised loan obligations (CLOs) market, specifically targeting high-quality, AAA-rated tranches. Launched in early 2023, this actively managed exchange-traded fund aims to provide income potential while prioritising capital preservation. By investing in securitised debt backed by corporate loans, the fund allows individuals to access a segment typically reserved for institutional investors. With net assets exceeding USD 2.28 billion and a moderate expense ratio of 0.20%, it presents a structured vehicle for diversification within fixed income. While CLOs generally offer yields that can be attractive in rising or stable interest rate environments, they carry risks including credit default and interest rate fluctuations. Investors should consider their risk tolerance and investment horizon carefully, remembering that past performance is not indicative of future results and capital is at risk.

JAAA (JAAA)

The Janus Detroit Street Trust Henderson AAA CLO ETF (JAAA) offers investors exposure to a diversified portfolio of Collateralized Loan Obligations rated AAA by major credit agencies. As a securitised bond fund, it focuses on high-quality credit instruments designed to generate income while aiming to preserve capital. With net assets of USD 31.17 billion and 609 holdings, the fund provides broad diversification within the CLO market. It maintains a dividend yield of 4.88%, appealing to income-focused strategies, and operates with a low expense ratio of 0.20%. Launched in October 2020, JAAA is actively managed by Henderson, a Janus Henderson company, leveraging their expertise in fixed-income markets. Investors should note that while AAA ratings indicate high credit quality, values can fluctuate, and income levels are not guaranteed. This fund serves as an educational example of how structured credit products can form part of a balanced investment approach, subject to market conditions and individual suitability.

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CLOA vs JAAA

Fund Snapshot

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CLOZ vs JAAA

Investment Analysis

CLOA

Pros

Considerations

JAAA

Pros

Considerations

About CLOA and JAAA

Buy CLOA or JAAA in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What are Collateralised Loan Obligations (CLOs) and why are they rated AAA?

What does 'Securitized Bond - Focused' mean in the context of these ETFs?

How do the expense ratios of CLOA and JAAA compare for long-term investors?

What are the differences in dividend yield between CLOA and JAAA?

How does the size of the fund impact liquidity for investors in CLOA and JAAA?

Do CLOA and JAAA track a specific index or benchmark?

What are the inception dates of CLOA and JAAA and why do they matter?

Why is transparency about top holdings and sector weights not available for these funds?

What risks are associated with investing in securitized bond ETFs like CLOA and JAAA?

How might an investor determine which fund aligns with their goals?

Fund Snapshot

About CLOA and JAAA

Discover More Comparisons

CLOZ vs JAAA