JBBB: Understanding Janus Henderson's B-BBB CLO ETF
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Joseph E. Jones1.04K FollowersFollow5ShareSavePlay(11min)Comments(3)SummaryThe Janus Henderson B-BBB CLO ETF targets floating-rate CLO tranches, primarily rated BBB, offering higher income with moderate credit risk.JBBB has delivered a trailing distribution yield around 7%, outperforming money markets, ultra-short bond ETFs, and its AAA-rated counterpart JAAA.The fund's near-zero interest rate duration limits NAV impact from rate changes. Credit spread movements drive price volatility.JBBB can work as an income-focused allocation within a diversified fixed income portfolio, acting as a return enhancer rather than a stabilizer or cash substitute. BlackSalmon/iStock via Getty Images This article provides an overview of Janus Henderson’s B-BBB CLO ETF (JBBB). The fund is income-focused, holding CLO tranches rated at the lower end of the investment-grade spectrum. Like its sister ETF, the Janus Henderson AAA CLO ETF (This article was written byJoseph E. Jones1.04K FollowersFollowDr. Joseph E. Jones is a professor at The University of Southern Mississippi. He focuses on portfolio construction from a dividend growth investment perspective. The insights expressed in his research are solely his own. They do not represent the views or financial interests of his employer.Analyst’s Disclosure:I/we have a beneficial long position in the shares of JAAA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.