Reckoner BBB-B CLO Reinvesting ETF

The Reckoner BBB-B CLO Reinvesting ETF is an actively managed exchange-traded fund that provides targeted exposure to primarily BBB- and BB-rated tranches of collateralized loan obligations (CLOs). These mezzanine-rated CLO bonds are structured securities backed by diversified pools of predominantly senior secured, below-investment-grade corporate loans, offering floating-rate coupons typically benchmarked to SOFR for interest rate resilience. The fund's primary function is to maximize compounding returns by minimizing distributions and continuously reinvesting portfolio income and gains into additional CLO holdings, fostering long-term asset growth. Managed by Reckoner Capital Management, specialists in alternative credit, it employs a bottom-up selection process across USD-denominated, floating-rate CLOs from various managers and vintages. Launched as part of an innovative CLO ETF suite in early 2026, it caters to investors seeking capital preservation with enhanced yield potential in the $1.1 trillion CLO market, distinct from monthly or annual payout counterparts. With an expense ratio around 0.50%, it holds a concentrated portfolio of about 25 positions, emphasizing diversification within higher-risk mezzanine layers protected by senior tranches and CLO structural safeguards like cash flow waterfalls and overcollateralization tests. This ETF plays a key role in democratizing access to CLOs, blending active management with ETF liquidity for retail and institutional portfolios focused on income compounding amid evolving structured credit dynamics.