Invesco AAA CLO Floating Rate Note ETF

ICLO is actively managed to invest in USD-denominated floating rate CLOs that are rated AAA or equivalent.

ICLO, an Invesco ETF with an 80/20 AAA/AA allocation, has underperformed pure AAA peers despite its higher risk allocation, prompting a downgrade to 'Hold'. The fund's 15% allocation to 'AA' securities aimed to enhance yield without significant drawdown but failed to outperform competitors like JAAA and PAAA. The underperformance is attributed to poor security selection by the portfolio management team, not the expense ratio, which is comparable to peers.

ICLO: Mildly Disappointing (Rating Downgrade)

Invesco Senior Loan ETF

Invesco Total Return Bond ETF

Invesco Variable Rate Preferred ETF

As investors prepare portfolios for the new year, four fixed income ETFs are worth consideration for 2025. 1. Invesco Senior Loan ETF (BKLN) As investors look for fixed income ETFs well-positioned for 2025, bank loans should not be overlooked.

4 Invesco Fixed Income ETFs for 2025

Floating rate notes excelled during the Fed's rate hike cycle, but their appeal may wane as we enter a rate-cutting phase. The Invesco AAA CLO Floating Rate Note ETF focuses on top-quality AAA-rated collateralized loan obligations, offering higher credit quality and protection against defaults. ICLO's narrow focus on AAA-rated CLOs might lead to lower returns compared to funds with riskier assets, especially in a tight credit spread environment.

ICLO: Not A Fund I'd Consider With Rates Dropping

Blackrock AAA CLO ETF

Vaneck CLO ETF

Panagram Bbb-B Clo Etf

Janus Henderson AAA CLO ETF

Janus Detroit Street Trust-Janus Henderson B-BBB CLO ETF

Palmer Square CLO Senior Debt ETF

Palmer Square Credit Opportunities ETF

Several firms are planning to launch collateralized loan obligation (CLO) ETFs, enhancing options for investors. CLOs have provided attractive risk-adjusted returns over the past decade, especially when compared to other fixed income investments.

CLO ETFs in Focus: Virtus, Blondbloxx, Nuveen Plot Entrance

AXS First Priority CLO Bond ETF

CLO ETF performance has been outstanding these past few years. Most have seen below-average drawdowns, significant dividend growth, and massive outperformance with above-average yields. Yields range from 6.4% to 8.9%, and that is without leverage or excessive credit risk.

Is CLO Outperformance Set To Continue?

ICLO focuses on AAA-rated CLOs, high-quality, variable rate investments. I'm bullish on ICLO due to its 6.7% SEC yield, stable share price, and strong performance track record. It seems like a particularly compelling opportunity for more risk-averse, short-term investors.

ICLO: AAA-Rated CLO ETF, Good 6.7% SEC Yield, Strong Performance

Invesco AAA CLO Floating Rate Note ETF primarily invests in floating rate note securities issued by collateralized loan obligations rated AAA or AA. The ETF has $124 million in assets under management and a trailing twelve-month yield of 7.7%. After reviewing the ICLO ETF, I compare its performance against two other CLO ETFs that invest lower on the ratings scale with better results.

ICLO: Invests In AA-AAA Rated CLOs

This article analyzes the Invesco AAA CLO Floating Rate Note ETF, focusing on its composition, performance, risks, and suitability for investors. ICLO invests in AAA (and a small portion in AA) CLO tranches, offering a 6.7% 30-day SEC yield. The fund has performed in line with similar AAA CLO ETFs since 2023.

ICLO: Invesco's AAA CLO Fund, 6.7% Yield

SPDR Bloomberg 1-3 Month T-Bill ETF

iShares Floating Rate Bond ETF

ProShares Investment Grade-Interest Rate Hedged

InfraCap REIT Preferred ETF

FolioBeyond Rising Rates ETF

iShares Short Treasury Bond ETF

The bets over imminent Fed rate cuts weakened on central banks' cues. These ETFs that offer protection against rising rates are at a 52-week high currently.

Fed Rate Cut Bets Ease: 5 ETF Areas at a 52-Week High

Invesco

Invesco China Technology ETF

Invesco S&P 500 BuyWrite ETF

Invesco Raymond James SB-1 Equity ETF

PBP, CQQQ and RYJ to reduce fees; fee waiver extended for ICLO ATLANTA , Jan. 4, 2024 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a leading global asset management firm, has announced that it will implement changes to four ETFs, as further outlined below.

Invesco Announces Changes to Four ETFs

Whenever a crisis hits, opportunity can arise. When the banking crisis potentially put the stability of the U.S. financial system in question during Q1, opportunities in collateralized loan obligations (CLO) were a byproduct.

Q1 Banking Crisis Put This CLO-Focused ETF in Perspective

Invesco High Yield Select ETF

Invesco Municipal Strategic Income ETF

Invesco Short Duration Bond ETF

Invesco 1-30 Laddered Treasury ETF

Invesco has cut fees on a trio of fixed income ETFs totaling $1.7 billion in assets. The affected funds include the $985 million Invesco Total Return Bond ETF (GTO), the $654 million Invesco 1-30 Laddered Treasury ETF (PLW), and the $33 million Invesco AAA CLO Floating Rate Note ETF (ICLO).

Invesco Slashes Fees on 3 Fixed Income ETFs: GTO, PLW, ICLO

Simplify Enhanced Income ETF

SPDR Bloomberg High Yield Bond ETF

 SPDR Blackstone Senior Loan ETF

Invesco Variable Rate Investment Grade ETF

BondBloxx BB-Rated USD High Yield Corporate Bond ETF

BondBloxx CCC-Rated USD High Yield Corporate Bond ETF

Bull vs. Bear is a weekly feature where the VettaFi writers' room takes opposite sides for a debate on controversial stocks, strategies, or market ideas — with plenty of discussion of ETF ideas to play either angle. For this edition of Bull vs.

Bull vs. Bear: Are High Yield ETFs Worth the Higher Risk?

Invesco Taxable Municipal Bond ETF

Invesco BulletShares 2025 Corporate Bond ETF

Invesco BulletShares 2026 Corporate Bond ETF

Invesco PureBeta 0-5 Yr US TIPS ETF

With uncertainty around interest rates, inflation, and the possibility of recession, most investors will benefit by staying within the short to intermediate part of the curve when allocating to fixed income ETFs. Similarly, opting for balanced fixed income exposure as opposed to making big bets is recommended in the current environment.

7 Fixed Income ETFs to Consider in the Current Environment

Bonds have been following the downward selling pressure of stocks amid rising interest rates and inflation for the majority of 2022. However, the stage is set for a comeback in 2023 for bond-focused exchange traded funds (ETFs).

4 ETFs to Consider as the Stage Is Set for a Bond Comeback

Invesco has launched four new active ETFs, expanding the firm's lineup of fixed income solutions.

News for Invesco AAA CLO Floating Rate Note ETF ETF (ICLO)