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BMO AAA CLO ETFZAAA-NEDON'T BUYOct 19, 2026Stock price when the opinion was issued
AAA-rated collateralized loan obligations. A way to get an enhanced yield without taking on a lot of interest rate risk, because the structure is floating rate in a sense. Fine in a stable environment.
However, there is credit risk. If we go through a time where credit spreads widen, it will be a drag on this ETF. Yield is 5.36%.
It's a way to play the Collateralized Loan Obligation (CLO) space in the U.S., but it's volatile given the currency difference between the U.S. and Canada. The hedged version is a little better.