(CLOI) VanEck Trust - VanEck CLO - Ratings and Ratios

The VanEck CLO ETF (CLOI) is an Ultrashort Bond ETF listed on the NYSE ARCA, providing investors with exposure to a diversified portfolio of Collateralized Loan Obligations (CLOs). CLOs are structured finance securities backed by a pool of loans, typically leveraged loans, which are often used by companies to finance various business activities.

The ETFs investment objective is to provide income and total return, primarily through investing in a diversified portfolio of CLOs. The performance of CLOI is closely tied to the overall health of the leveraged loan market, which is influenced by factors such as interest rates, credit spreads, and the overall economic environment. Key economic drivers for CLOI include the Federal Reserves monetary policy decisions, credit market conditions, and the default rates of the underlying loans.

To evaluate the performance of CLOI, key performance indicators (KPIs) such as yield, duration, and credit quality can be used. The yield on CLOI is expected to be influenced by the yield on the underlying CLOs, which in turn is driven by the creditworthiness of the borrowers and the overall market conditions. A higher yield typically indicates a higher perceived risk, while a lower yield indicates a lower perceived risk.

The AUM of $1.121 billion indicates a sizable investor base, which can contribute to liquidity and stability in the ETFs shares. The low beta of 0.100 suggests that CLOIs returns are relatively insensitive to broader market movements, making it a potentially useful diversifier in a portfolio. However, the ultrashort bond category is subject to interest rate risk, and changes in monetary policy can impact the ETFs performance.