AXS First Priority CLO Bond ETF (AAA) seeks capital preservation and income by providing credit investors with diversified exposure to AAA-rated CLOs. A Collateralized Loan Obligation (CLO) is a type of security that allows investors to purchase an interest in a diversified portfolio of company loans. Investors looking for attractive yields with high credit ratings and floating rate structures can consider AAA as a core fixed income component for their portfolios.
Seeks to deliver relatively high yields by investing in AAA CLOs, a type of debt security supported by cashflows from secured, first lien loans.
The fund's CLO AAA-rated bonds contain floating rate coupons, which can limit losses in rising interest environments.
Actively managed by an experienced credit manager with strict guidelines to stick to highly rated bonds.
Inception Date: 9/9/2020
Distribution Frequency: Monthly
Total Annual Operating Expense: 0.25%
Peter Coppa, Founder and Managing Partner at Alternative Access Funds (AAF), is the portfolio manager for the AXS First Priority CLO Bond ETF and is responsible for the day-to-day management of the fund. He has served as portfolio manager of the predecessor fund since its inception in September 2020. AAF was founded with the goal of bringing more mature alternative credit strategies to the broader market in an investor friendly manner. AAF’s investment strategies help investors diversify their portfolios by providing alternatives to traditional management and investment needs.
Alternative Access Funds
Founder and Managing Partner
Frequently Asked Questions
What is the ticker for AXS First Priority CLO Bond ETF?
AAA. Easy to remember because the fund seeks to invest in bonds with a AAA ("triple A") rating or an equivalent rating by a nationally recognized statistical rating organization (NRSRO).
What does an AAA rating mean?
AAA is the highest possible rating that may be assigned to an issuer's bonds by any of the major credit rating agencies. AAA-rated bonds have a high degree of creditworthiness because their issuers are easily able to meet financial commitments and have the lowest risk of default.
Who rates bonds?
Credit ratings are provided by a nationally recognized statistical rating organization (NRSRO). Ratings are grades given to bonds that indicate their credit quality as determined by private independent rating services such as Standard & Poor’s, Moody’s and Fitch. These firms evaluate a bond issuer’s financial strength, or its ability to pay a bond’s principal and interest in a timely fashion. Ratings are expressed as letters ranging from ‘AAA’, which is the highest grade, to ‘D’, which is the lowest grade.
How does the portfolio respond to rising interest rates?
All bonds in the AAA ETF contain floating rate coupons, meaning that on a quarterly basis their coupon adjusts for changes in short-term interest rates. Having floating rates can limit the market losses that occur when interest rates rise, in which case holders of these bonds receive more cash flow per dollar invested.
On which exchange does the fund trade?
What is the fund’s investment objective?
AXS First Priority CLO Bond ETF seeks capital preservation and income.
When was the fund's inception?
AAA was launched on September 9, 2020.
Important Risk Information
You could lose money by investing in the Fund. There can be no assurance that the Fund’s investment objectives will be achieved.
Collateralized Loan Obligations (CLOs) are generally backed by a pool of credit-related assets that serve as collateral. Accordingly, CLO securities present risks similar to those of other types of credit investments, including default (credit), interest rate and prepayment risks. In addition, CLOs are often governed by a complex series of legal documents and contracts, which increases the risk of dispute over the interpretation and enforceability of such documents relative to other types of investments. An increase in interest rates may cause the value of fixed income securities held by the Fund to decline. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives. The Fund’s income may decline if interest rates fall.
The Fund may not be able to sell some or all of the investments that it holds due to a lack of demand in the marketplace or other factors such as market turmoil, or if the Fund is forced to sell an illiquid asset to meet redemption requests or other cash needs it may only be able to sell those investments a loss.
CLOs are typically leveraged, and such leverage will magnify the loss on CLO investments, which may in turn magnify the loss experienced by the Fund. Debt securities, even investment-grade debt securities, are subject to credit risk. If the Fund holds a fixed income security subject to prepayment or call risk, it may not benefit fully from the increase in value that other fixed income securities generally experience when interest rates fall. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities with fixed interest rates but may decline in value if their interest rates do not rise as much, or as quickly, as interest rates in general.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns. NAVs are calculated using prices as of 4:00 PM Eastern Time. The closing price is the midpoint between the bid and ask price as of the close of exchange. Closing price returns do not represent the returns you would receive if you traded shares at other times.