UBS AM launches its first actively managed ETF
8 JUL, 2025
UBS AM has announced today the launch of its first actively managed ETF, which offers cost-efficient exposure to the highest-rated tranches of the Collateralized Loan Obligation (CLO) market. The UBS EUR AAA CLO UCITS ETF combines the active management expertise of UBS AM's Credit Investments Group with the established and consolidated business of UBS ETF.
The new exchange-traded fund offers access to the growing CLO market through a liquid and efficient ETF structure, which means:
- Higher potential return with structural protection: AAA CLOs offer superior returns compared to similarly rated investments, with structural features that have been tested over several cycles, with no defaults even in periods of economic crisis.
- Portfolio diversification: the variable nature of the interest rate of this asset class offers significant diversification potential in the context of a broader fixed income portfolio.
- Active coverage: Credit Investments Group, one of the leading managers of collateralized loan obligations worldwide, dynamically manages risk and return to take advantage of market opportunities.
- ETF efficiency: the ETF structure allows for liquidity and cost-efficient access to this complex asset class.
UBS Asset Management plans to offer a range of active ETFs that will leverage its differentiated capabilities in fixed income, to be followed by a series of income-focused ETFs with integrated option strategies.
CLOs offer great potential for return and diversification benefits. However, to navigate this market, it is necessary to understand the structures of CLOs, regulation, and the risks involved in this sector. We have combined over 20 years of ETF innovation with the expertise of our Credit Investments Group to offer the highest-rated CLO securities efficiently and transparently. The active management element offers cost-efficient exposure with the potential to achieve superior returns.
André Mueller, Head of Client Coverage at UBS AM
We are delighted to offer our experience of over two decades in managing CLO tranches to a broader investor base. The deep credit knowledge and track record of our team across multiple credit cycles allow us to be in a privileged position to offer attractive investments. In the current market, we believe that AAA CLO liabilities offer an attractive risk-return profile. Offering this investment through an ETF will broaden access to this growing market.
John Popp, Head of Credit Investments Group at UBS AM
