What Is the VanEck CLOI ETF? A Beginner-Friendly Guide to CLO Investing Understanding the VanEck CLO ETF (CLOI) The VanEck CLO ETF (CLOI) is an actively managed exchange-traded fund designed for investors seeking two primary objectives: capital preservation and current income generation. Unlike many traditional stock ETFs focused mainly on long-term growth, CLOI aims to provide income opportunities while also attempting to manage risk. The ETF is sub-advised by PineBridge Investments and focuses primarily on investment-grade portions of collateralized loan obligations, commonly called CLOs. For many investors, the term CLO may sound complex at first. However, understanding the basic idea can make the investment approach much easier to follow. CLOs are financial structures that package together multiple corporate loans and divide them into different layers called tranches. These layers carry different levels of risk and return characteris...
What Is the VanEck FLTR ETF? A Beginner-Friendly Guide to Floating Rate Bond Investing Understanding the VanEck IG Floating Rate ETF (FLTR) The VanEck IG Floating Rate ETF (FLTR) is an exchange-traded fund designed for investors seeking exposure to investment-grade floating rate bonds. The ETF aims to closely track the performance of the MVIS US Investment Grade Floating Rate Index, which consists of U.S. dollar-denominated floating rate notes issued by investment-grade corporate issuers. Unlike traditional fixed-rate bonds that pay the same interest rate throughout their lifetime, floating rate bonds work differently. Their interest payments can adjust periodically according to changes in market interest rates. Because of this feature, floating rate investments often attract attention during changing interest-rate environments. Investors sometimes look for floating rate strategies because rising interest rates can create challenges ...