(CLOX) Series Portfolios Trust - Ratings and Ratios

The Series Portfolios Trust (NYSE ARCA: CLOX) is an actively managed exchange-traded fund (ETF) designed to capitalize on the stability of high-rated collateralized loan obligations (CLOs). Under normal market conditions, the fund allocates at least 80% of its net assets (plus borrowings for investment purposes) to CLOs rated AAA or equivalent by a nationally recognized statistical rating organization (NRSRO). If a CLO is unrated, the funds adviser assesses its quality to ensure equivalence. CLOs are structured financial instruments that pool together leveraged loans, offering predictable cash flows due to their seniority in the capital structure. This focus on AAA-rated CLOs aims to provide exposure to a low-risk segment of the leveraged loan market, particularly appealing in environments where credit spreads are stable or tightening. The fund is non-diversified, meaning it can concentrate its holdings in a smaller number of securities, which may increase risk but also allows for targeted exposure to the CLO market.

As an ultrashort bond ETF, CLOX is structured to deliver returns with minimal interest rate sensitivity, making it suitable for investors seeking stable income in a rising or falling rate environment. The funds active management allows the portfolio team to select CLOs with favorable terms, such as lower leverage, stronger collateral pools, and attractive spreads. Additionally, the ETFs focus on the AAA tranche of CLOs provides a layer of protection against defaults, as these securities are senior to other tranches and typically have lower loss absorption. The funds average volume of 14,774 shares over the past 20 days and assets under management (AUM) of $107.30 million indicate moderate liquidity, which is common for niche fixed-income ETFs. Its current price of $25.51 reflects its net asset value (NAV) plus a minimal premium, as evidenced by the tight spread between its last price and short-term moving averages (SMA 20: $25.57, SMA 50: $25.47).