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Fidelity Launches Two CLO ETFs

Observant1
edited February 12 in Fund Discussions
Fidelity just launched two actively managed CLO ETFs.
FAAA will invest at least 80% of its assets in AAA-rated CLOs.
FCLO will have the majority of its portfolio in CLOs rated from BBB+ down to B-.
Management fees will be waived for both funds during the first twelve months.
Afterward, gross expense ratios will be 0.20% and 0.45% for FAAA and FCLO respectively.
CLO ETf assets have increased significantly over the past five years or so.
Some industry participants have said that the AAA segment has become crowded.

https://www.investmentnews.com/etfs/fidelity-debuts-pair-of-active-clo-etfs-as-investor-appetite-broadens/265258

Comments

  • FD1000
    Too late, CLOs were hot in 2023,2024 when I used CLOZ and HOSIX.
  • hank
    edited February 13
    FD1000 said:

    Too late, CLOs were hot in 2023,2024 when I used CLOZ and HOSIX.

    If you used HOSIX in '23 you were gambling with a very new fund. M* doesn't show any performance numbers for '22 or earlier. I like to see how fixed income funds weathered the storm in '22. Rather not get hosed with my safer money. And a 1.40% ER? Must be a typo. I know FD's too smart to pay such a high fee for a fixed income fund - especially a brand new untested one.
  • FD1000
    If this is gambling then I have been gambling for over 25 years by selecting unique funds, having great performance and retiring years earlier.

    I don't care about ER to a degree because ER is included in the performance.

    In 2022 my portfolio made over 9%. I sold everything earlier in the year and bought back in November.
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