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

Overview

The AAF First Priority CLO Bond ETF (AAA) seeks to provide current income by investing in first priority, senior-secured U.S. dollar-denominated CLO debt securities. It focuses on the highest-rated tranches of CLOs, aiming for capital preservation and income generation.

Reputation and Reliability

The issuer, AAF, is an experienced asset manager specializing in structured credit. Their reputation is built on expertise in CLOs and other fixed-income securities.

Management Expertise

The management team possesses in-depth knowledge of the CLO market and structured credit investing. Their experience is critical for navigating the complexities of CLO valuation and risk management.

Goal

To provide current income by investing in first priority, senior-secured U.S. dollar-denominated CLO debt securities.

Investment Approach and Strategy

Strategy: The ETF aims to deliver current income by investing in the highest-rated tranches of CLOs. It does not track a specific index but rather uses active management to select CLO investments.

Composition The ETF primarily holds AAA-rated CLO debt securities, with minimal exposure to other asset classes. The portfolio is diversified across different CLO issuers and underlying loan pools.

Market Share: Data not readily available.

Total Net Assets (AUM): 108792512

Key Competitors

• JAAA

Competitive Landscape

The competitive landscape consists of other actively managed CLO ETFs. AAF differentiates itself with its focused approach on the highest-rated tranches. Its advantage lies in the potential for lower risk, while a disadvantage could be potentially lower returns compared to ETFs that invest in lower-rated CLO tranches. JAAA is the main competitor and dominates the AAA CLO market.

Historical Performance: Historical performance data is available on the fund's fact sheet and varies with market conditions.

Benchmark Comparison: The ETF's performance should be compared against the Bloomberg U.S. CLO AAA Index.

Expense Ratio: 0.41

Average Trading Volume

The ETF exhibits a moderate average trading volume, indicating reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is relatively tight, reflecting the fund's liquidity and efficiency in trading.

Market Environment Factors

Economic conditions, interest rate movements, and credit market sentiment affect the performance of CLOs. Changes in loan default rates and CLO issuance volumes influence the ETF.

Growth Trajectory

Growth is dependent on the CLO market expansion, interest rate trends, and investor demand for higher-yielding, fixed-income alternatives.

Competitive Edge

The AAF First Priority CLO Bond ETF's competitive edge lies in its specialized focus on AAA-rated CLO tranches, which appeals to risk-averse investors. The active management team's expertise in CLO selection and risk management differentiates it from passive CLO ETFs. Its commitment to transparency and investor education further enhances its competitive advantage. The ETF aims to provide a stable and income-generating investment option in the CLO market. The management team's experience adds value through its selective CLO purchases.

Volatility

The ETF's volatility is generally lower compared to broader high-yield bond ETFs due to its focus on the highest-rated CLO tranches.

Market Risk

Risks include credit risk associated with the underlying loans in the CLOs, interest rate risk, and potential liquidity risk in the CLO market during periods of stress.

Ideal Investor Profile

The ideal investor is risk-averse and seeks current income with a focus on capital preservation. Investors who understand CLOs and are looking for an alternative to traditional fixed income may find this ETF appealing.

Market Risk

The ETF is suitable for long-term investors and those looking for stable income, and who understand the unique characteristics of CLOs.

The AAF First Priority CLO Bond ETF (AAA) offers a focused approach to CLO investing by targeting the highest-rated tranches. Its active management seeks to provide current income with a focus on capital preservation. The ETF is suitable for risk-averse investors seeking stable income and diversification within fixed income. However, investors should understand the risks associated with CLOs and consider the ETF's expense ratio. The fund's performance is closely tied to the CLO market's health and interest rate conditions.

Data Sources:

• AAF Website
• ETF Fact Sheet
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investors should consult with a financial advisor before making investment decisions. Market conditions are subject to change, and past performance is not indicative of future results.