About VanEck CLO ETF (CLOI)

The VanEck CLO ETF (CLOI) is an exchange-traded fund that aims to provide investors with exposure to collateralized loan obligations (CLOs). CLOs are structured debt instruments that are backed by a pool of loans, usually corporate loans. The fund seeks to track the performance of the MVIS US Business Development Companies Index, which includes liquid, publicly traded BDCs that invest in leveraged loans and are classified as CLO equity tranches. The index is designed to provide a broad representation of the CLO market and currently includes over 20 holdings.

Historically, CLOs have offered attractive risk-adjusted returns due to their seniority in the capital structure and the underlying collateral. While CLOs were negatively impacted during the financial crisis, they have since rebounded and have become a popular asset class among institutional investors seeking yield and diversification. The VanEck CLO ETF provides investors with a convenient way to access this asset class in a cost-effective and transparent manner.