The Janus Henderson AAA CLO ETF (JAAA), which launched in October 2020 as one of the market's first exchange traded funds to invest in collateralized loan obligation (CLO), has surpassed $10 billion in assets under management, Janus Henderson Investors announced.
Much of that growth appears to have happened since the beginning of the year. JAAA's AUM was $5.3 billion at the end of 2023, suggesting a 94% increase.
JAAA expands U.S. investor access to the high-quality floating rate AAA-CLO market in a liquid, tax-efficient ETF structure, after it had historically only been available to institutional investors, the company said. The actively managed ETF invests in high quality CLOs that seek high yield returns without sacrificing quality or extending duration.
"Excluding agency mortgage-backed securities, the securitized market is a $5 trillion market with few pure play funds that invest in it," according to a statement from John Kershner, head of U.S. securitized products and portfolio manager at Janus Henderson Investors. "We believe AAA CLOs are an attractive addition to portfolios due to their diversification benefits, low interest rate volatility, attractive returns and strong credit ratings."
