JAAA: Active ETF of the Year Award Nominee

2025 Active ETF of the Year award nominee, the Janus Henderson AAA CLO ETF (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 that invests primarily in AAA-rated CLO tranches. CLOs 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.

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 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.  

Try out etf.com's Fund Flows tool 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.