VanEck on Thursday announced the launch of an exchange-traded fund designed to offer investors exposure to the $1 trillion collateralized loan obligation market.
The actively managed fund, the VanEck CLO ETF, is subadvised by PineBridge Investments, a VanEck spokesman said.
"The growth of the CLO market has been driven by the benefits they provide, including enhanced yields vs. equivalently rated bonds and loans and their considerable structural protections," said William Sokol, senior ETF product manager at VanEck, in a news release issued Thursday. "In today's rising-rate environment, the floating rate coupons of CLOs make them particularly attractive."
The fund will focus primarily on investment-grade CLOs. PineBridge is both a CLO manager as well as an active investor in CLO tranches.
"Our institutional clients have understood the strong value proposition of our CLO strategies for more than 20 years, and we are looking forward to extending access to this market to a broader investor base," said Laila Kollmorgen, portfolio manager, CLO tranche, at PineBridge, in the news release.
VanEck had about $78.3 billion in assets under management, including mutual funds, ETFs and institutional accounts, as of May 31. PineBridge managed $146 billion as of March 31.