BlackRock launched the AAA CLO ETF (CLOA) less than a month ago, and the product already has about $30 million in assets under management. Panagram Structured Asset Management is exploring riskier versions in the same ETF sector, launching the BBB-B CLO ETF (CLOZ) and surpassing the $20 million mark in less than two weeks. Fixed income funds boom The growth of these funds comes after a boom in fixed income ETFs in 2022, as rising interest rates and high inflation sent investors hunting for ways to generate additional yield. Invesco and VanEck also launched CLO ETFs last year, presenting additional investment options. However, there are diversification benefits to having floating rate ETFs for investors, especially in the U.S. where most fixed income products have a fixed rather than a floating rate, Kerschner said.

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