What this ETF is trying to do

The VanEck CLO ETF (CLOI) is an exchange-traded fund that focuses on Collateralized Loan Obligations (CLOs). In simple terms, it is designed to provide investors with income through regular cash distributions.

What the numbers show

As of October 9, 2026, the share price of CLOI was $52.83. To understand how the fund has performed, we look at two different types of returns: price return (the change in the share price) and total return (which includes both the share price change and the distributions paid out).

• Year-to-Date (YTD): The price return is 0.04%, and the total return is 3.80%.

• One Year: The price return was -6.62%, but the total return was 5.15%.

• Three Year: The price return was 1.64%, while the total return was 20.96%.

An estimated price from roughly one year ago was $52.86. If you had invested $10,000 based on that estimated price, the price-only return of -6.62% would mean your principal value decreased, even though the total return (including distributions) was positive.

Income and distribution explanation

CLOI is designed for income. It usually pays distributions monthly and has made 12 payments over the last year. The distribution yield is 5.09%.

It is important for beginners to remember that a high distribution yield alone can be misleading. A fund can pay out a high percentage in cash while the actual share price falls. In this case, the total return is higher than the price return because the distributions added value that the share price alone did not show.

NAV erosion explanation

"NAV erosion" happens when the net asset value of a fund steadily declines, meaning the fund is losing its underlying value over time.

CLOI has an erosion-risk score of 94, which is labeled as "Stable / sideways" with "good" severity. Additionally, the severe erosion-risk flag is false, meaning the fund's price trend has not triggered a severe warning.

Pros

• Consistent Income: The fund provides regular monthly distributions.

• Positive Total Returns: Over the one-year and three-year periods, the total return remained positive.

• Stability: The erosion-risk score suggests the fund's value has been stable or moving sideways.

Cons

• Price Decline: The one-year price return was negative (-6.62%), meaning the share price itself dropped.

• No Holdings Data: There is currently no specific holdings data available to show exactly which assets the fund owns.

Beginner takeaway

CLOI is a fund that pays regular income. While the share price can go down (as seen in the one-year price return), the total return tells a different story because it includes the cash paid to investors. Income investors care about principal stability because they want to earn cash without losing the original money they invested.