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AAA CLO ETFs offer higher yields than money markets, ideal for cautious investors seeking income without equity risk.

Market News
01 Jun 2026
ETF Trends
View Source
Bullish
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With $8 trillion in money market funds and declining cash yields, investors seek better income options without equity risk. AAA-rated CLO ETFs, like Fidelity's FAAA, provide higher yields than many government bonds and money markets, with lower interest rate and default risks. These ETFs have shown strong performance, delivering positive returns in 88% of months since 2011 and averaging 3.4% annual returns. They represent a conservative yet attractive alternative for income-focused investors amid uncertain rate cuts by the Federal Reserve.

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