Collateralised loan obligation exchange‑traded funds under the UCITS framework (UCITS CLO ETFs) have opened up access to a market that was once only made available through specialist mandates. Here, we explore who is allocating to CLO ETFs and their motivations.
UCITS CLO ETFs provide access to the structural benefits of CLOs – diversification, floating‑rate income, and robust credit enhancement – through a regulated, transparent, and liquid wrapper. In an environment where governance standards, liquidity considerations, and cost discipline matter more than ever, UCITS CLO ETFs deliver a solution that aligns with institutional oversight and implementation needs.
For investors managing income targets, liquidity needs, or portfolio resilience, the question is no longer “what are CLO ETFs?” but “who uses them and why?”. By mapping the motivations of different investor groups, we aim to provide a clear picture of how these strategies are being used in practice, helping institutional clients globally benchmark their own approach against peers and understand the portfolio roles that CLO ETFs can play.
