JAAA: The King For Cash Going Into 2025

Dec. 28, 2024 6:58 AM ETJanus Henderson AAA CLO ETF (JAAA)JBBB, CLOA, CLOI, CLOZ, CLOX10 Comments
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John Bowman
3.2K Followers
(7min)

Summary

  • I advocate for CLOs, particularly the Janus Henderson AAA CLO ETF (JAAA), which has shown strong performance and deserves a fresh review.
  • CLOs bundle risky loans to reduce overall risk, with JAAA focusing solely on the AAA tranche, offering a safer investment.
  • JAAA stands out due to its high AUM and superior returns compared to the bond index, benefiting from floating rate debt.
  • With rates in flux, JAAA's yield may fall, but it will perform well as long as rates stay above 3%.

WilleeCole/iStock via Getty Images

Introduction

Regular readers of mine will know that over the last year of writing on Seeking Alpha, I've become an evangelist for CLOs, CLO ETFs, and CLO CEFs.

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About JAAA ETF

SymbolLast Price% Chg
JAAA
50.700.08%
Post50.70-0.00%
Created with Highcharts 11.2.0Dec 23Dec …Dec 24Dec 26Dec 2750.550.650.7
Expense Ratio
0.21%
Div Frequency
Monthly
Div Rate
$3.22
Yield
6.35%
Assets (AUM)
$16.56B
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