A New Kind Of ETF Is Tempting Yield Chasers—With New Trade-Offs
Private Credit ETFs vs. Traditional Index ETFs: Individual investors are increasingly turning to private credit ETFs for higher yields, but these funds lack the transparency and liquidity of traditional index ETFs, raising concerns about their underlying structures and risks.
Risks and Considerations: While private credit ETFs offer access to income-generating assets previously available only to institutions, they come with potential downsides such as limited visibility, single-manager exposure, and possible liquidity mismatches that investors should be aware of.
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Reckoner's New ETF Promises Greater Returns Compared to Conventional Bonds
Launch of New ETF: Reckoner Capital Management has launched the Reckoner BBB-B CLO ETF (NYSE: RCLO) with over $27 million in assets, focusing on income generation through investments in BBB- and BB-rated CLO bonds.
Market Demand and Strategy: The ETF aims to attract investors seeking higher yields and diversification, as BBB- and BB-rated CLOs offer better returns than AAA-rated CLOs while maintaining lower loss experiences.
Management and Oversight: The ETF is actively managed by Reckoner's co-founder and CEO John Kim, along with portfolio managers Tim Wickstrom and Jared Finsterbusch, and has an expense ratio of 0.50%.
Accessibility for Retail Investors: By providing a liquid, listed form of CLO exposure, RCLO seeks to democratize access to structured products traditionally reserved for institutional investors, catering to retail investors in a low-yield environment.
A New Kind Of ETF Is Tempting Yield Chasers—With New Trade-Offs
Private Credit ETFs vs. Traditional Index ETFs: Individual investors are increasingly turning to private credit ETFs for higher yields, but these funds lack the transparency and liquidity of traditional index ETFs, raising concerns about their underlying structures and risks.
Risks and Considerations: While private credit ETFs offer access to income-generating assets previously available only to institutions, they come with potential downsides such as limited visibility, single-manager exposure, and possible liquidity mismatches that investors should be aware of.
Higher Yields Without Junk Bonds: Reckoner's New ETF Offers New Spin On CLOs
Launch of RAAA ETF: Reckoner Capital Management has introduced the Reckoner Leveraged AAA CLO ETF (RAAA), the first ETF offering leveraged exposure to AAA-rated collateralized loan obligations (CLOs), aiming to provide higher yields through selective investment and moderate leverage.
Market Positioning: The RAAA ETF distinguishes itself in a growing market by focusing on high-quality CLO assets, utilizing up to 50% leverage, and actively managing risks to attract yield-seeking investors while maintaining capital preservation.
Reckoner's New ETF Promises Greater Returns Compared to Conventional Bonds
Launch of New ETF: Reckoner Capital Management has launched the Reckoner BBB-B CLO ETF (NYSE: RCLO) with over $27 million in assets, focusing on income generation through investments in BBB- and BB-rated CLO bonds.
Market Demand and Strategy: The ETF aims to attract investors seeking higher yields and diversification, as BBB- and BB-rated CLOs offer better returns than AAA-rated CLOs while maintaining lower loss experiences.
Management and Oversight: The ETF is actively managed by Reckoner's co-founder and CEO John Kim, along with portfolio managers Tim Wickstrom and Jared Finsterbusch, and has an expense ratio of 0.50%.
Accessibility for Retail Investors: By providing a liquid, listed form of CLO exposure, RCLO seeks to democratize access to structured products traditionally reserved for institutional investors, catering to retail investors in a low-yield environment.
A New Kind Of ETF Is Tempting Yield Chasers—With New Trade-Offs
Private Credit ETFs vs. Traditional Index ETFs: Individual investors are increasingly turning to private credit ETFs for higher yields, but these funds lack the transparency and liquidity of traditional index ETFs, raising concerns about their underlying structures and risks.
Risks and Considerations: While private credit ETFs offer access to income-generating assets previously available only to institutions, they come with potential downsides such as limited visibility, single-manager exposure, and possible liquidity mismatches that investors should be aware of.
Higher Yields Without Junk Bonds: Reckoner's New ETF Offers New Spin On CLOs
Launch of RAAA ETF: Reckoner Capital Management has introduced the Reckoner Leveraged AAA CLO ETF (RAAA), the first ETF offering leveraged exposure to AAA-rated collateralized loan obligations (CLOs), aiming to provide higher yields through selective investment and moderate leverage.
Market Positioning: The RAAA ETF distinguishes itself in a growing market by focusing on high-quality CLO assets, utilizing up to 50% leverage, and actively managing risks to attract yield-seeking investors while maintaining capital preservation.
