Invesco Launches Europe's First AAA CLO ETFs

Invesco has launched two new actively managed Ucits ETFs focused on collateralized loan obligations (CLOs), marking the introduction of Europe’s first U.S. dollar-denominated AAA CLO ETF. The Invesco USD AAA CLO Ucits ETF and Invesco EUR AAA CLO Ucits ETF are designed for professional investors, offering diversified exposure to AAA-rated CLO tranches with a total expense ratio of 0.35%. This launch follows a trend of increasing availability of CLO investments via ETFs in Europe, with Invesco leveraging its experience in private credit and ETF management. The funds comply with European regulations, ensuring a minimum net economic interest retention by CLO sponsors. Additionally, Fair Oaks Capital has also introduced its GBP-hedged AAA CLO ETF, contributing to the growing market of actively managed ETFs in Luxembourg. Both firms aim to provide investors with attractive yields and lower volatility compared to traditional fixed-rate products.