I advocate for CLOs, particularly the Janus Henderson AAA CLO ETF (JAAA), which has shown strong performance and deserves a fresh review.

CLOs bundle risky loans to reduce overall risk, with JAAA focusing solely on the AAA tranche, offering a safer investment.

JAAA stands out due to its high AUM and superior returns compared to the bond index, benefiting from floating rate debt.

With rates in flux, JAAA's yield may fall, but it will perform well as long as rates stay above 3%.

Treasury Inflation-Protected Securities, or TIPS, are government-issued fixed-income securities that's principal is indexed to inflation. Learn more about investing in these unique bonds and their outlook for 2022.

Here’s a concise summary of key points for evaluating TIPS ETFs:

Selection Criteria: Key factors in choosing the best TIPS ETFs include 1-year performance, low expense ratios, and a focus on funds primarily holding Treasury inflation-protected bonds (TIPS). Additional factors include portfolio holdings and Seeking Alpha's Factor Grades, which assess momentum, risk, dividends, expenses, and asset flows.

Performance: Performance evaluation is based on 1-year returns, though investors are advised to review longer-term metrics (3, 5, and 10 years) for a broader perspective. The performance of TIPS ETFs is often compared to the Bloomberg U.S. Government Inflation-Linked Bond Index and the broader Bloomberg U.S. Aggregate Bond Index.

Top 3 TIPS ETFs:

PIMCO 15+ Year U.S. TIPS ETF (LTPZ): 1-year performance of 6.89%, with an expense ratio of 0.20% and a 7.75% SEC Yield. It tracks the BofA Merrill Lynch 15+ Year U.S. Inflation-Linked Treasury Index.

SPDR Portfolio TIPS ETF (SPIP): 1-year performance of 4.25%, with a low expense ratio of 0.12%. It tracks the Bloomberg U.S. Government Inflation-Linked Bond Index.

iShares TIPS Bond ETF (TIP): 1-year performance of 4.07%, with an expense ratio of 0.19%. It tracks the Bloomberg U.S. Inflation-Protected Securities Index.

Portfolio Holdings: TIPS ETFs typically hold U.S. Treasury inflation-protected bonds, with durations varying from short- to long-term. Most ETFs track an index designed to replicate the performance of inflation-linked securities, although the duration and composition may vary slightly.

Investment Considerations: TIPS ETFs offer protection against inflation but come with interest rate risks. They tend to outperform in inflationary environments but may underperform when inflation concerns diminish. Investors should weigh their goals and market outlook before investing.