PGIM AAA Collateralized Loan Obligation ETF

The PGIM AAA Collateralized Loan Obligation ETF is an exchange-traded fund that primarily invests in highly-rated, collateralized loan obligations. The fund's core aim is to provide investors with exposure to floating-rate, senior-secured loans, offering a degree of protection against default and interest rate risk. With a focus on AAA-rated tranches, the ETF maintains a conservative risk profile while generating income. Collateralized loan obligations (CLOs) are structured financial products backed by a pool of loans, typically leveraged loans taken by companies. These are then divided into different tranches based on credit quality, with AAA tranches being the highest in creditworthiness and having the least risk. The ETF plays a pivotal role in diversifying a portfolio's fixed-income component, catering to investors looking for more stability compared to lower-rated credit vehicles. It indirectly supports sectors that rely on structured finance to access capital, contributing to overall market liquidity. The fund is a significant tool for institutional investors and private individuals seeking a balance between risk and yield in the complex landscape of credit markets.