Alternative Access First Priority CLO Bond ETF

Alternative Access First Priority CLO Bond ETF (AAA) is an actively managed fund that buys only the senior-most, AAA-rated slices of collateralized loan obligations (CLOs), which are pools of corporate loans. Its bonds pay floating rates, and its deepest price drop since February 2021 was 2.6%. The trade-offs are a 0.19% expense ratio, well above similar bond ETFs, and net assets of about $45 million as of June 30, 2026.

• Over the year to Oct 27, 2026, AAA returned +3.9%, 1st of 8 among similar funds.
• Its 5-year annualized return was +4.8%.
• Its worst full calendar year was 2022 (+0.2%); its best was 2023 (+8.9%).
• The deepest fall in its price history was 2.6% (Feb 17, 2022 to Jul 6, 2022), recovered by Dec 29, 2022.

As of Jun 30, 2026, the fund held 31 securities; the ten largest made up 43.47% of assets.

The bonds mature in 5 years on average (weighted by size), with an average coupon of 3.9%.

• Over the three months to Jun 30, 2026, investors withdrew a net $2.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.57%, +0.44%, +0.31%.

AAA is an actively managed ETF from Alternative Access Funds LLC, not an index fund. A collateralized loan obligation (CLO) pools loans to companies and sells bonds backed by them in layers, called tranches. The top layer is paid first; losses hit the bottom layers first. The fund puts at least 80% of its net assets into the senior-most, AAA-rated tranches of US dollar CLOs. These floating-rate bonds pay interest that moves with short-term rates.

Each CLO's loan pool must be mostly (typically 90%) broadly syndicated first-lien senior secured loans: large loans shared by many lenders and first in line for repayment. Deals must total at least $300 million, with a AAA tranche of at least $150 million. The fund avoids middle-market and synthetic CLOs. It caps any single bond at 5% of assets and any CLO manager at 10%. Each CLO must also pass a credit-quality test at purchase. If a bond is later downgraded, the manager decides whether to keep it.

As of June 30, 2026, the fund held 31 positions. The nine largest, including Fortress Credit BSL XXVI, AMMC CLO 31 and Apidos CLO XLIII, were each about 4.5% of assets. The fund creates and redeems shares mainly for cash, which can force poorly timed sales.

• AAA charges 0.19% a year, versus an average of 0.06% for the similar funds below (8th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $19 in the first year and $243 over 10 years (assuming a 5% annual return).

Its stated goal is capital preservation and income, and it pays monthly from floating-rate AAA CLO bonds that have moved little in price.

AAA could serve as a monthly income sleeve that holds steady when markets fall. Its trailing 12-month yield was 4.67% as of October 27, 2026. Because the bonds float, that income would likely fall if short-term rates drop. The fund launched in September 2020, so it missed the 2008 crisis and the 2020 COVID crash. In the 2022 bear market it fell 2.6% from February 17 to July 6 and recovered by December 29, about 5.8 months later. Its weakest calendar year was 2022, and it still gained 0.36%. A retiree selling shares in a year like that would have taken only a small hit. Watch the cost: 0.19% against a 0.06% average for similar funds. Watch the size too: about $45 million as of June 30, 2026. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).