Reckoner Capital Adds New CLO ETF

Reckoner Capital Management announced the launch of the Reckoner BBB-B CLO ETF (RCLO) on the NYSE Arca today. The fund debuted with more than $27 million in assets under management.

According to the fund’s prospectus, RCLO aims to generate income while seeking to preserve capital. It primarily invests in a diversified portfolio of Collateralized Loan Obligation bonds rated BBB- and BB.

When speaking about the launch, John Kim, Reckoner’s co-founder and CEO, noted that demand for CLO-focused ETFs remains strong, particularly among investors seeking yield and diversification beyond traditional fixed income.

RCLO carries an expense ratio of 0.50% and is actively managed by Kim alongside Tim Wickstrom and Jared Finsterbusch, who serve as portfolio managers. 

See More: ETF 360: Reckoner’s John Kim on CLOs

From AAA to BB

RCLO follows the July debut of Reckoner’s first ETF, the Reckoner Yield Enhanced AAA CLO ETF (RAAA), formerly known as Reckoner Leveraged AAA CLO ETF, which focuses on the highest-rated portion of the CLO capital structure.

“While most inflows have been directed to the AAA space, BBB- and BB-rated CLOs offer a higher yield than AAA CLOs while still outperforming other credit assets with similar ratings in terms of loss experience,” says Kim. “We expect to see more investor interest in these mezzanine tranches as the market continues to develop.”

Reckoner Capital was founded in early 2025 with backing from private equity firm RedBird Capital Partners. It has positioned itself as a specialist in structured products, particularly CLOs. While CLOs are a longstanding part of institutional fixed income portfolios, they’ve historically been less accessible to retail investors. ETFs like RCLO aim to bridge that gap, offering exposure to structured credit in a liquid, exchange-traded wrapper.

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