(ICLO) Invesco Aaa Clo Floating - Ratings and Ratios

The Invesco Aaa CLO Floating Rate Note ETF (BATS: ICLO) is an actively managed exchange-traded fund (ETF) designed to provide exposure to high-quality floating rate notes issued by collateralized loan obligations (CLOs). Under normal market conditions, the fund allocates at least 80% of its net assets (plus borrowings for investment purposes) to AAA-rated (or equivalent) CLO securities. These securities are typically senior, secured instruments with floating interest rates tied to a reference rate, such as LIBOR. The fund does not limit its investments to a specific maturity range, allowing it to maintain flexibility in varying interest rate environments. As a non-diversified fund, it may concentrate its holdings in a smaller number of securities, which can increase risk but also allow for targeted exposure to the CLO market.

From a technical perspective, ICLO has shown stability in recent trading sessions. Its 20-day average volume is 216,339 shares, indicating moderate liquidity. The fund is currently trading at $25.64, slightly above its 20-day simple moving average (SMA) of $25.59 but marginally above its 50-day SMA of $25.49. The 200-day SMA of $25.02 reflects long-term stability, with the fund trading in a narrow range. The average true range (ATR) of 0.03 highlights low volatility, suggesting minimal price fluctuations over the observed period. With assets under management (AUM) of $334.05 million, ICLO is a mid-sized ETF in the ultrashort bond category, providing investors with access to the AAA-rated CLO market.

Over the next three months, ICLO is expected to maintain its stable performance. The funds SMA trends suggest that it may continue to trade near its current range, with potential upside driven by its ability to capitalize on the floating rate nature of its holdings in a rising interest rate environment. The low ATR indicates that volatility is likely to remain subdued, making the fund appealing to investors seeking low-risk exposure to the CLO market. Additionally, the funds focus on AAA-rated securities positions it well to navigate potential credit market uncertainties, supported by strong fundamental data such as its AUM and consistent trading volume.