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RAAR ETF — Holdings & Analysis

The Reckoner Yield Enhanced AAA CLO Reinvesting ETF (RAAR) is an actively managed fund focused on generating high current income through investments in AAA-rated collateralized loan obligation (CLO) tranches.

With an expense ratio of 0.40%, RAAR aims to actively manage credit exposure and income within the CLO market. Launched in November 2024, RAAR has a relatively small AUM of $0.01 billion and a NAV of $50.06. RAAR's reinvesting structure differentiates it within the equity ETF landscape, focusing on enhanced yield through CLOs.

Reckoner Yield Enhanced AAA CLO Reinvesting ETF (RAAR) ETF — Price, Holdings & Analysis

The Reckoner Yield Enhanced AAA CLO Reinvesting ETF (RAAR) is an actively managed fund focused on generating high current income through investments in AAA-rated collateralized loan obligation (CLO) tranches. With an expense ratio of 0.40%, RAAR aims to actively manage credit exposure and income within the CLO market. Launched in November 2024, RAAR has a relatively small AUM of $0.01 billion and a NAV of $50.06. RAAR's reinvesting structure differentiates it within the equity ETF landscape, focusing on enhanced yield through CLOs.

ETF Overview

The fund seeks to provide high current income by investing primarily in AAA-rated collateralized loan obligation (CLO) tranches, employing a reinvesting structure designed to actively manage credit exposure and income generation within the CLO market.
RAAR seeks to provide high current income by investing primarily in AAA-rated collateralized loan obligation (CLO) tranches. The fund employs a reinvesting structure, actively managing credit exposure and income generation within the CLO market. This targeted approach differentiates RAAR from broader equity ETFs, focusing specifically on the CLO market segment. RAAR's strategy is designed for investors seeking enhanced yield through structured credit products, specifically those with the highest credit ratings. The fund's near-exclusive allocation to the United States (99.1%) indicates a focus on the U.S. CLO market. RAAR's investment strategy may appeal to investors looking for alternative income sources within the fixed-income landscape, but it requires an understanding of the complexities and risks associated with CLOs. Past performance does not guarantee future results.

Risk Metrics

RAAR's risk profile is closely tied to the CLO market, specifically AAA-rated tranches. While AAA ratings suggest lower credit risk, the fund is still subject to market fluctuations and potential credit downgrades within the CLO market. The fund's concentration in U.S. assets (99.1%) exposes it to specific economic and regulatory risks within the United States. With an AUM of $0.01 billion, RAAR carries liquidity risk, particularly for larger investors. The 0.40% expense ratio will create a drag on performance, especially if the fund does not generate sufficient returns to offset this cost. Investors should carefully consider their risk tolerance and understanding of CLOs before investing in RAAR. Past performance does not guarantee future results.

Expense Ratio

0.40%

How Is the Fund Allocated?

CountryWeight
United States99.1%
Other0.9%

Dividend Yield

0.00%

Questions & Answers

What is RAAR and what does it track?

The Reckoner Yield Enhanced AAA CLO Reinvesting ETF (RAAR) is an actively managed fund that seeks to provide high current income. It achieves this by investing primarily in AAA-rated collateralized loan obligation (CLO) tranches.

Unlike passive ETFs that track an index, RAAR employs a reinvesting structure designed to actively manage credit exposure and income generation within the CLO market.

What is the expense ratio for RAAR?

The expense ratio for the Reckoner Yield Enhanced AAA CLO Reinvesting ETF (RAAR) is 0.40%. This means that for every $10,000 invested in the fund, $40 is used to cover the fund's operating expenses.

While there isn't a defined 'category average' for CLO-specific ETFs, the expense ratio is comparable to actively managed fixed-income ETFs.

What are the top holdings in RAAR?

As an actively managed ETF investing in CLOs, RAAR's holdings are subject to change. Because the fund invests in AAA-rated CLO tranches, the specific holdings are not static and are actively managed.

While a precise list of top holdings isn't readily available, the fund's investment strategy focuses on diversifying across various AAA-rated CLO issuers.

Is RAAR a good long-term investment?

Evaluating RAAR as a long-term investment requires careful consideration of its investment strategy and the CLO market.

RAAR's focus on AAA-rated CLO tranches aims to provide a relatively stable income stream, but the fund is still subject to market risks and potential credit events within the CLO market.

How does RAAR compare to similar ETFs?

RAAR differentiates itself through its specific focus on AAA-rated CLO tranches and its active management approach. While other fixed-income ETFs may invest in broader categories of debt securities, RAAR targets a specific segment of the CLO market.

With an AUM of $0.01 billion, RAAR is relatively small compared to larger, more diversified fixed-income ETFs.

Does RAAR pay dividends?

While RAAR's stated objective is to provide high current income, the current dividend yield is 0.00%. This may be due to the fund's recent inception date (November 2024) and the time required for its investments to generate distributable income.

It is possible that RAAR will distribute income in the future as its portfolio matures and generates returns.