(AAA) Listed Funds Trust - AAF - Ratings and Ratios

The AAF First Priority CLO Bond ETF (NYSE ARCA:AAA) is an actively managed exchange-traded fund (ETF) that primarily invests in high-quality, senior-secured debt instruments. Under normal market conditions, the fund allocates at least 80% of its net assets (plus borrowings for investment purposes) to AAA-rated first priority debt tranches of U.S. dollar-denominated collateralized loan obligations (CLOs). These CLOs are typically collateralized by syndicated loans to corporate borrowers, offering a layer of diversification and credit protection. The fund does not track a specific index and employs an active management strategy to navigate the CLO market, which includes securities of varying maturities. This approach allows the fund to target consistent income generation while maintaining a focus on preserving capital.

As an ultrashort bond ETF, the fund is designed to provide exposure to shorter-duration fixed-income securities, which can be less sensitive to interest rate fluctuations compared to longer-duration bonds. The funds investment strategy emphasizes senior, first-priority debt tranches, which historically have exhibited lower default rates and higher recovery rates compared to subordinated tranches. Additionally, the active management team seeks to identify attractive investment opportunities across the CLO market, with a focus on credit quality, structural protections, and yield optimization.