Looking Beyond AAA CLOs Pays Off – VanEck – 3.4.25

Overview:
Title: Looking Beyond AAA CLOs Pays Off
Date: Tuesday, March 4, 2025
Time: 1:00 PM Eastern Standard Time
Duration: 1 hour

Register Now:
Already Registered?
*I am a financial professional. I understand that this event is for financial professionals only, and I may be contacted by the sponsor.

Summary:

Now Available On Demand

Allocating only to AAA CLO tranches may leave yield and return potential on the table. Investment grade CLO tranches beyond AAAs offer higher income and more attractive total return opportunities without significantly more risk, and can allow advisors to build more robust core bond portfolios.

For example, over the past decade, single A rated CLOs have outperformed AAA CLOs by 142 basis points per year with lower volatility than investment-grade corporate bonds. BBB CLOs, meanwhile, provide a 147 bps yield pickup over AAAs while offering higher credit quality than high-yield bonds. Gain actionable insights on allocating across investment grade CLO tranches by joining us for a webinar to explore:

  • Enhanced yield and risk-adjusted return opportunities beyond AAA CLOs
  • Why a broad investment grade approach may outperform if rates decline
  • Why active management is key in CLOs

Accepted for 1 CFP® / IWI / CFA CE Credit

Speakers:
Fran Rodilosso Fran Rodilosso Head of Fixed Income ETF Portfolio Management VanEck

  • Head of Fixed Income ETF Portfolio Management
  • Responsible for portfolio strategies as well as credit and market analysis; specializes in international bond markets
  • Joined VanEck in 2012
Bill Sokol Bill Sokol Director of Product Management VanEck

  • Responsible for supporting the firm’s taxable fixed income and country/regional equity ETF product lines including product development, strategy and marketing.
  • Senior Product Manager for VanEck ETFs focusing on strategic equity, hard assets, and equity-income ETFs
  • Joined VanEck in 2016

For Financial Professional Use Only. Not for Retail Distribution.

Source: ICE Data Indices, J.P. Morgan. CLOs represented by J.P. Morgan CLO Index or the ratings subset of the J.P. Morgan CLO Index

Definition: J.P. Morgan Collateralized Loan Obligation Index tracks US dollar denominated broadly-syndicated, arbitrage CLOs.

This content is intended for educational purposes only. Please note that the availability of the products mentioned may vary by country, and it is recommended to check with your local stock exchange. Please note that VanEck may hold positions in the companies discussed herein

This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the speaker(s), but not necessarily those of VanEck or its other employees.

An investment in the VanEck AA-BB CLO ETF (CLOB) and the VanEck CLO ETF (CLOI) may be subject to risks which include, but are not limited to, risks related to Collateralized Loan Obligations (CLO), debt securities, foreign currency, foreign securities, investment focus, newly-issued securities, extended settlement, affiliated fund investment, management and capital preservation, derivatives, currency management strategies, cash transactions, market, Sub-Adviser, operational, authorized participant concentration, no guarantee of active trading market, trading issues, fund shares trading, premium/discount, liquidity of fund shares, non-diversified, seed investor, and new fund risks, all of which may adversely affect the Funds. Investments in debt securities may expose the Fund to other risks, such as risks related to liquidity, interest rate, floating rate obligations, credit, call, extension, high yield securities, income, valuation, privately-issued securities, covenant lite loans, default of the underlying asset and CLO manager risks, all of which may impact the Fund’s performance. Derivatives may involve certain costs and risks such as liquidity, interest rate, and the risk that a position could not be closed when most advantageous. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of VanEck.

Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.

 © Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.