Eldridge’s CLOZ ETF Hits Three-Year Mark with 37% Cumulative Return

Event summary

  • Eldridge’s BBB-B CLO ETF (CLOZ) marks its third anniversary with a 37% cumulative return since inception in January 2023.
  • CLOZ invests in BBB and BB-rated tranches of collateralized loan obligations (CLOs), offering floating-rate bonds backed by senior secured corporate loans.
  • The ETF has delivered an annualized return of ~11.2% and a SEC 30-Day Yield of ~7.3% as of December 31, 2025.
  • Eldridge’s actively managed fixed-income ETF suite also includes the AAA CLO ETF (CLOX), which has a cumulative return of 17%+ since its July 2023 launch.

The big picture

Eldridge’s CLOZ ETF provides investors with exposure to credit markets outside the traditional aggregate bond index, offering enhanced income through floating-rate bonds. The firm’s active management approach and deep credit platform expertise position it to capitalize on market cycles, with over $70 billion in assets under management across diversified credit, real estate credit, and other strategies. The success of CLOZ underscores the growing demand for alternative income solutions in a low-yield environment.

What we're watching

Credit Market Stability
How the performance of CLOZ will be affected by broader credit market conditions, particularly in stressed environments.
Regulatory Scrutiny
Whether the BBB- and BB-rated tranches of CLOs will face increased regulatory or market aversion due to their higher risk profile.
Investor Demand
The pace at which institutional and individual investors adopt CLOZ as a complementary asset to traditional fixed-income allocations.