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Janus Henderson’s JAAA CLO ETF tops $30B in assets
The fund’s growth is tied to steady rates at 3.5% to 3.75% and ongoing investor interest in floating-rate CLOs versus corporate bonds.
Janus Henderson’s collateralized loan obligation ETF, JAAA, has surpassed $30 billion in assets under management, the company said. The increase highlights continuing investor demand for CLO exposure through the ETF wrapper, which is commonly structured around below-investment-grade, floating-rate loans.
Recent product momentum in the CLO space is also expanding beyond Janus Henderson. In June, Pacer ETFs and Barings launched two funds focused on CLOs and secured credit, and earlier this year Fidelity introduced two new active strategies aimed at the category, according to the report.
The article links part of the demand to the Federal Reserve’s decision last month to hold interest rates steady at a 3.5% to 3.75%. It also notes that CLOs saw outflows in December after rate cuts, when investors expected rates to keep falling and shifted attention toward longer-duration products.
Janus Henderson said the floating-rate nature of AAA CLOs means they have little duration, which the firm argues has supported investors who want a less rate-sensitive profile. The piece adds that CLO ETFs have been available to individual investors via the ETF wrapper since 2020, with Janus Henderson’s fund among the first launched in October of that year.