JAAA: An Effective Way To Pick Up Short-Term Yield

  • Janus Henderson AAA CLO ETF provides a strong yield pickup over Treasury floating-rate ETFs like TFLO, with near-zero duration due to its floating-rate structure. The ETF invests only in AAA-rated CLO tranches, which have experienced zero defaults over 30 years. Even under stressed conditions, default rates would need to be historically extreme and sustained to eliminate outperformance.