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Bonds•7 April 2026•

1 min read

VanEck CLO ETF (CLOI) Offers Higher Yields via Complexity Premium

Key Facts

1CLOI offers a complexity premium of 50–150 bps over comparable corporate credit.

2The fund is actively managed by PineBridge for opportunistic rotation across investment-grade CLO tranches.

3The fund features a floating-rate structure, minimizing duration risk and maintaining near-zero equity beta.

VanEck’s CLO ETF (CLOI) has received a buy rating for its ability to capture a 'complexity premium' in the investment-grade collateralized loan obligation (CLO) market. The fund provides investors with an additional yield of 50 to 150 basis points over comparable corporate credit instruments. Actively managed by PineBridge, the ETF opportunistically rotates across various investment-grade tranches to maximize returns. Due to its floating-rate structure, CLOI effectively minimizes duration risk, making it less sensitive to interest rate fluctuations. Furthermore, the fund maintains a near-zero equity beta, offering a non-correlated income source as Federal Reserve policy normalizes. This positioning makes it an attractive alternative for fixed-income investors seeking yield without traditional market volatility.

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