##  [# JAAA: Active ETF of the Year Award Nominee](/sections/features/jaaa-active-etf-year-award-nominee) 

 

# JAAA: Active ETF of the Year Award Nominee

 

 

\- The Janus Henderson AAA CLO ETF (JAAA) is a 2025 Active ETF of the Year award nominee.  
\- The CLO ETF outperformed 96% of category peers in 2024.  
\- JAAA is an actively managed ETF that invests primarily in AAA-rated CLO tranches.



 

 

 

 

 [![kent](/sites/default/files/styles/author_image_icon/public/2023-03/Kent_0.png?itok=V1U_V6-d "kent")](/authors/kent-thune) 

[By Kent Thune ](/authors/kent-thune)

 Apr 09, 2025

 Edited by: David Tony

 

 

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2025 Active ETF of the Year award nominee, the [**Janus Henderson AAA CLO ETF (JAAA)**](/jaaa), attracted over $15 billion in assets in 2024, a testament to its compelling combination of high yields and relative safety.

By actively investing in AAA-rated collateralized loan obligations (CLOs), JAAA provided fixed-income investors with an appealing option amid persistent inflation and economic uncertainty. The fund's focus on top-tier CLO tranches offered enhanced income potential while maintaining a conservative risk profile, aligning with investor demand for both yield and stability during a tumultuous financial landscape.

## JAAA: How the CLO Active ETF Works

Launched in October 2020, JAAA is an [actively managed ETF](https://www.etf.com/topics/floating-rate) that invests primarily in AAA-rated CLO tranches. [CLOs](https://www.usbank.com/corporate-and-commercial-banking/insights/institutional/corporate-trust/what-is-clo.html) are securities backed by pools of loans, typically leveraged loans, bundled together and sold to investors. Within these structures, tranches are segmented by risk and return, with AAA-rated tranches representing the highest credit quality and having the first claim on cash flows from the underlying loans.

This prioritization reduces default risk, offering investors a safer exposure to the leveraged loan market. The fund's active management allows for strategic selection of CLO tranches, aiming to optimize the balance between yield and credit quality.

 
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## Floating Rates and Economic Uncertainty

In 2025, JAAA's assets under management have surpassed $20 billion, reflecting continued investor confidence. The fund's growth trajectory suggests that its appeal remains strong, particularly as investors seek instruments that can navigate the complexities of an evolving economic environment.

The [floating-rate](https://www.etf.com/topics/floating-rate) nature of CLOs positions JAAA favorably in scenarios where interest rates may fluctuate, providing a hedge against rate volatility. However, potential investors should remain cognizant of factors, such as liquidity, in the underlying assets and the inherent complexities of CLO structures.

![Fund Flows for JAAA in 2024](/sites/default/files/inline-images/JAAA%20flows.PNG)*Try out etf.com's* [*Fund Flows tool*](https://www.etf.com/etfanalytics/etf-fund-flows-tool-result?tickers=JAAA&startDate=2024-01-01&endDate=2024-12-31&frequency=DAILY) *to get more data and insights.*

## JAAA Poised to Remain Valuable Active Fixed-Income ETF

JAAA's remarkable asset growth in 2024 underscores its role as a top-performing ETF within its category, and it's well-deserving of its Active ETF of the Year nod at this year’s etf.com Awards. By delivering high yields coupled with relative stability through investments in AAA-rated CLOs, the fund has addressed the needs of fixed-income investors navigating inflationary pressures and economic uncertainties.

As it continues to offer a blend of income potential and risk mitigation, JAAA stands poised to remain a valuable component in diversified fixed-income portfolios.



 

 

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 [ Kent Thune CFP, Senior Content Editor ](/authors/kent-thune) 

 

 

  Kent Thune is Senior Content Editor for etf.com, focusing on educational content, thought leadership, content management and search engine…   [View Bio](/authors/kent-thune)

 



 

 


 Related Topics  [Floating Rate](http://www.etf.com/topics/floating-rate) 

 [Fixed Income](http://www.etf.com/topics/fixed-income) 

 [Bond](http://www.etf.com/topics/bond) 

 [Corporate](http://www.etf.com/topics/corporate) 

 [Janus Henderson](http://www.etf.com/topics/janus-henderson)