Ticker: ICLO

Invesco AAA CLO Floating Rate Note ETF

Designed for investors seeking income, investment grade credit ratings, and securities with floating interest rates.

Product details

Why invest in ICLO?

The Invesco AAA CLO Floating Rate Note ETF is designed for investors seeking income, investment grade credit ratings, and securities with floating interest rates.

Income

Income

Floating rate note securities issued by CLOs provide periodic coupon payments to investors.

Investment grade

Investment grade

ICLO invests primarily in securities that are rated AAA or equivalent by a nationally recognized statistical rating organization (NRSRO) at the time of purchase.

Floating rate

Floating rate

Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities with fixed interest rates.

FAQ

They are investment grade securities. A collateralized loan obligation is a trust that issues fixed-rate or floating rate debt securities that are collateralized by a pool of loans, which may include domestic and foreign senior secured loans, senior unsecured loans, or subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans.

Floating rate loans typically have coupon payments that reset periodically based on changes in short-term interest rates. Therefore, their coupons usually rise along with short-term interest rates.

The index is ICLO’s benchmark and a total return benchmark for broadly syndicated arbitrage US CLO debt.

The ETF typically makes monthly income distributions.

The ETF may appeal to investors looking for monthly income and a strategy that invests in AAA-rated securities with a floating rate feature.

Explore related funds

To learn more about our multifactor offerings, explore the ETFs below: 

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Footnotes

  • The Invesco AAA CLO Floating Rate Note ETF seeks current income and capital preservation.