Listed Funds Trust - AAF First Priority CLO Bond ETF (AAA)

Overview

The ETF Listed Funds Trust - AAF First Priority CLO Bond ETF focuses on investing in Collateralized Loan Obligations (CLOs). Its strategy is to provide investors with exposure to the CLO market, which consists of securitized pools of senior secured corporate loans. The ETF aims to generate income and capital appreciation through its holdings in various tranches of CLO debt securities.

Reputation and Reliability

ETF Listed Funds Trust is a relatively newer issuer in the ETF space, and its reputation is still developing. AAF Management LLC, the investment advisor, has experience in fixed-income strategies, particularly in credit markets.

Management Expertise

The management team behind the AAF First Priority CLO Bond ETF is comprised of professionals with experience in credit analysis, portfolio management, and the structuring and trading of securitized credit products.

Goal

The primary investment goal is to provide investors with current income and potential capital appreciation by investing in CLO debt securities.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index. It actively selects and manages its portfolio of CLO tranches based on the investment advisor's research and market outlook.

Composition The ETF primarily holds debt securities issued by Collateralized Loan Obligations (CLOs). These CLOs are backed by underlying pools of senior secured corporate loans.

Market Share: As a specialized ETF focusing on CLOs, its market share within the broader ETF universe is likely small. Specific market share data for this niche ETF is not readily available and would be difficult to quantify against broader bond or credit ETFs.

Total Net Assets (AUM): 119867110

Key Competitors

• CLOX
• XDCL

Competitive Landscape

The CLO ETF market is relatively niche and less crowded than broader fixed-income ETF segments. Competitors may offer similar exposure to CLO debt. The AAF First Priority CLO Bond ETF's advantage lies in its focused strategy and potential for active management, while a disadvantage might be its limited track record and potentially lower liquidity compared to larger, more established ETFs. The competitive landscape is characterized by specialized strategies catering to investors seeking income from credit-sensitive instruments.

Historical Performance: Historical performance data for the ETF Listed Funds Trust - AAF First Priority CLO Bond ETF shows varied returns. For instance, its 1-year return was 7.55%, its 3-year annualized return was 5.20%, and its 5-year annualized return was 3.88% as of recent reporting periods. Year-to-date performance stood at 3.10%.

Benchmark Comparison: The ETF does not explicitly state a benchmark. Its performance is relative to its underlying CLO holdings and market conditions for such instruments.

Expense Ratio: 0.75

Average Trading Volume

The ETF's average trading volume indicates moderate liquidity, which can affect the ease and cost of execution for investors.

Bid-Ask Spread

The bid-ask spread for this ETF is generally wider than that of highly liquid ETFs, reflecting the specialized nature of its underlying assets and potentially impacting trading costs.

Market Environment Factors

The ETF is sensitive to interest rate movements, credit market conditions, and the overall economic health affecting corporate borrowers. A rising interest rate environment can impact the value of fixed-income securities, while strong economic growth generally supports the credit quality of underlying loans. The performance of the CLO market is also influenced by supply and demand dynamics for securitized credit products.

Growth Trajectory

The ETF's growth trajectory is tied to the increasing investor demand for alternative fixed-income solutions and the perceived attractiveness of CLO yields. Changes in strategy and holdings would be driven by the advisor's assessment of the CLO market, credit risk, and interest rate outlook.

Competitive Edge

The ETF's competitive edge stems from its specialized focus on the CLO market, which can offer attractive yields and diversification benefits. The active management by AAF Management LLC allows for potential selection of specific CLO tranches and structures that may outperform passive approaches. This niche focus also appeals to investors seeking specific types of credit risk and income generation not easily found in broader bond ETFs.

Volatility

The ETF exhibits moderate to high volatility, consistent with the nature of CLO debt securities, which are more sensitive to credit events and market sentiment than investment-grade bonds.

Market Risk

Key market risks include interest rate risk (as rates rise, bond prices fall), credit risk (default risk of the underlying corporate loans), prepayment risk (borrowers paying back loans early), and liquidity risk associated with CLO securities.

Ideal Investor Profile

The ideal investor is one seeking higher yields than traditional fixed-income products, understands and can tolerate the risks associated with CLO debt, and is looking for diversification within their credit portfolio. Investors should have a moderate to high risk tolerance and a long-term investment horizon.

Market Risk

This ETF is best suited for investors who are comfortable with active management and the complexities of structured credit products, rather than passive index followers or short-term traders seeking low-cost, broad market exposure.

The ETF Listed Funds Trust - AAF First Priority CLO Bond ETF offers specialized exposure to the CLO market, aiming to provide attractive income and potential capital appreciation. Its active management approach by AAF Management LLC seeks to navigate the complexities of CLO debt securities. While it caters to investors seeking higher yields and diversification, it comes with moderate to high volatility and specific risks associated with credit and interest rate sensitivity. Its niche focus distinguishes it from broader bond ETFs.

Data Sources:

• ETF Listed Funds Trust - AAF First Priority CLO Bond ETF official filings and prospectuses
• Financial data aggregators (e.g., ETF.com, Morningstar, Yahoo Finance)

Disclaimers:

This information is for informational purposes only and does not constitute investment advice. Investors should consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. Data accuracy is subject to the limitations of the sources used.