Columbia AAA CLO ETF(AMEX:AAAC)

AAAC is actively managed and invests primarily in AAA-rated CLOs, which are floating- or fixed-rate debt instruments backed by corporate loans, including senior secured, unsecured, and subordinate loans, that are of any maturity. It may also invest in derivatives such as forward contracts, interest rate futures, credit default swaps, and credit default swap indexes for hedging or investment purposes. CLOs are purchased in primary and secondary markets, with cash or short-term instruments held for liquidity or risk management. The investment manager conducts credit analysis by assessing CLO managers, collateral quality, stress scenarios, and structural terms. Investments are regularly monitored, and downgraded CLOs may be retained if deemed appropriate. The fund does not replicate an index but actively manages its portfolio to meet its objectives while considering credit and interest rate exposures.