Adams Wealth Management Trims iShares AAA CLO Active ETF Holding, According to Recent SEC Filing

What happened

According to a February 17, 2026, SEC filing, Adams Wealth Management sold 51,678 shares of BlackRock ETF Trust II - iShares AAA CLO Active ETF (NASDAQ:CLOA) during the fourth quarter of 2025. The estimated value of the transaction was $2.68 million, calculated using the average closing price for the quarter. The fund’s quarter-end position in CLOA was valued at $10.00 million, reflecting a total decrease in position value of $2.73 million, which includes both share sales and price changes.

What else to know

This sale reduced the CLOA stake from 2.7% to 2.1% of Adams Wealth Management’s 13F reportable assets as of December 31, 2025.

Top holdings after the filing:

• NYSEMKT: SCHX: $56,921,745 (12.1% of AUM)
• NYSEMKT: IVV: $28,255,733 (6.0% of AUM)
• NYSEMKT: EWY: $15,891,387 (3.4% of AUM)
• NYSEMKT: EUAD: $15,107,270 (3.2% of AUM)
• NASDAQ: GRID: $14,578,674 (3.1% of AUM)

As of February 18, 2026, CLOA was priced at $51.89 per share, up 5.4% over the past year, but underperforming the S&P 500 by 6.9 percentage points.

ETF overview

ETF snapshot

The iShares AAA CLO Active ETF offers institutional and individual investors targeted access to the AAA-rated segment of the CLO market, combining active management with rigorous credit selection. The fund is structured as a non-diversified ETF, offering investors exposure to investment-grade CLOs with a competitive annualized yield and a transparent, exchange-listed vehicle.

The fund actively manages a portfolio of U.S. dollar-denominated collateralized loan obligations (CLOs) rated AAA or equivalent, seeking to provide a high level of current income while preserving capital. Its strategy emphasizes capital preservation and income generation through investment in high-quality structured credit instruments. The fund's competitive yield profile and focus on top-tier CLO tranches position it as a differentiated fixed income solution within the ETF landscape.

Its underlying holdings consist primarily of AAA-rated CLO tranches, with flexibility to invest across maturities and select unrated securities deemed of similar quality by fund management.

What this transaction means for investors

The iShares AAA CLO Active ETF gives investors exposure to the senior-most tranches of collateralized loan obligations, which have priority in the cash flows generated by the underlying pools of corporate loans. The fund seeks capital preservation and current income by investing principally in U.S. dollar-denominated AAA-rated CLOs, and its income profile is shaped largely by floating-rate exposure, which makes it less sensitive to duration than traditional fixed-rate bond funds.

CLOA’s AAA rating reflects its position at the top of the CLO capital structure rather than the credit quality of the underlying loans, which are often below investment grade. Losses are designed to be absorbed first by lower tranches, giving senior investors an added layer of protection, but returns are still influenced by credit conditions, including loan default trends and changes in credit spreads. Because of that structure, CLOA tends to occupy a different place in portfolios than either government bonds or high-yield debt.

For investors, the key consideration is how AAA CLO exposure fits alongside other income holdings. If short-term rates remain relatively elevated and credit conditions stay stable, funds like CLOA will continue to offer attractive income with limited interest-rate sensitivity. If loan-market stress rises or spreads widen materially, the fund’s performance can come under pressure even with the structural protections associated with senior tranches.

Eric Trie has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.