ARCM vs. ACLO

Last updated Jun 23, 2026

ARCM (Arrow Reserve Capital Management ETF) and ACLO (TCW AAA CLO ETF) are both exchange-traded funds - ARCM is a Ultrashort Bond fund actively managed by Arrow Funds, while ACLO is a CLO fund actively managed by TCW. Both are actively managed. Over the past year, ARCM returned 3.64% vs 5.31% for ACLO. At a correlation of -0.06, they often move in opposite directions. ARCM charges 0.50%/yr vs 0.20%/yr for ACLO.

Performance

ARCM vs. ACLO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Arrow Reserve Capital Management ETF (ARCM) and TCW AAA CLO ETF (ACLO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ARCM achieves a 1.49% return, which is significantly lower than ACLO's 2.41% return.

ARCM

• 1D: -0.02%
• 1M: 0.27%
• YTD: 1.49%
• 6M: 1.59%
• 1Y: 3.64%
• 3Y*: 4.67%
• 5Y*: 3.19%
• 10Y*: —

ACLO

• 1D: 0.00%
• 1M: 0.41%
• YTD: 2.41%
• 6M: 2.53%
• 1Y: 5.31%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

ARCM vs. ACLO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ARCM Arrow Reserve Capital Management ETF	1.49%	4.11%	0.53%
ACLO TCW AAA CLO ETF	2.41%	5.32%	0.81%

Correlation

The correlation between ARCM and ACLO is -0.13, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.13
Correlation (All Time) Calculated using the full available price history since Nov 18, 2024	-0.06

Return for Risk

ARCM vs. ACLO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ARCM

ARCM Risk / Return Rank: 99
ARCM Sharpe Ratio Rank: 99
ARCM Sortino Ratio Rank: 99
ARCM Omega Ratio Rank: 99
ARCM Calmar Ratio Rank: 99
ARCM Martin Ratio Rank: 99

ACLO

ACLO Risk / Return Rank: 99
ACLO Sharpe Ratio Rank: 99
ACLO Sortino Ratio Rank: 99
ACLO Omega Ratio Rank: 99
ACLO Calmar Ratio Rank: 99
ACLO Martin Ratio Rank: 99

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ARCM vs. ACLO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Arrow Reserve Capital Management ETF (ARCM) and TCW AAA CLO ETF (ACLO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ARCM	ACLO	Difference
Sharpe ratio: Return per unit of total volatility	8.23	7.32	+0.91
Sortino ratio: Return per unit of downside risk	17.06	15.16	+1.90
Omega ratio: Gain probability vs. loss probability	4.32	3.44	+0.88
Calmar ratio: Return relative to maximum drawdown	29.32	19.90	+9.42
Martin ratio: Return relative to average drawdown	235.95	165.46	+70.49

ARCM vs. ACLO - Sharpe Ratio Comparison

The current ARCM Sharpe Ratio is 8.23, which is comparable to the ACLO Sharpe Ratio of 7.32. The chart below compares the historical Sharpe Ratios of ARCM and ACLO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ARCM vs. ACLO - Drawdown Comparison

The maximum ARCM drawdown since its inception was -4.08%, which is greater than ACLO's maximum drawdown of -1.01%. Use the drawdown chart below to compare losses from any high point for ARCM and ACLO.

Drawdown Indicators

	ARCM	ACLO	Difference
Max Drawdown Largest peak-to-trough decline	-4.08%	-1.01%	-3.07%
Max Drawdown (1Y) Largest decline over 1 year	-0.12%	-0.27%	+0.15%
Max Drawdown (3Y) Largest decline over 3 years	-3.46%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-3.46%	—	—
Current Drawdown Current decline from peak	-0.02%	0.00%	-0.02%
Average Drawdown Average peak-to-trough decline	-0.72%	-0.04%	-0.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.02%	0.03%	-0.01%

Volatility

ARCM vs. ACLO - Volatility Comparison

The current volatility for Arrow Reserve Capital Management ETF (ARCM) is 0.11%, while TCW AAA CLO ETF (ACLO) has a volatility of 0.19%. This indicates that ARCM experiences smaller price fluctuations and is considered to be less risky than ACLO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARCM	ACLO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.11%	0.19%	-0.08%
Volatility (6M) Calculated over the trailing 6-month period	0.30%	0.58%	-0.28%
Volatility (1Y) Calculated over the trailing 1-year period	0.44%	0.73%	-0.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.02%	1.07%	+1.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.13%	1.07%	+2.06%

ARCM vs. ACLO - Expense Ratio Comparison

ARCM has a 0.50% expense ratio, which is higher than ACLO's 0.20% expense ratio.

Dividends

ARCM vs. ACLO - Dividend Comparison

ARCM's dividend yield for the trailing twelve months is around 3.73%, less than ACLO's 4.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
ACLO TCW AAA CLO ETF	4.90%	4.87%	0.59%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ARCM Arrow Reserve Capital Management ETF	3.73%	4.13%	4.87%	4.26%	0.90%	0.02%	0.84%	2.32%	1.91%	0.62%

Frequently Asked Questions

Can I hold both ARCM and ACLO in my portfolio?

ARCM and ACLO have a correlation of -0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ARCM or ACLO?

ACLO has higher volatility (0.19%) compared to ARCM (0.11%). In terms of maximum drawdown, ARCM dropped -4.08% vs ACLO's -1.01%.

Which ETF is better, ARCM or ACLO?

On 1-year performance, ACLO leads with 5.31% vs 3.64% for ARCM. On fees, ACLO is cheaper at 0.20% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ARCM or ACLO?

Over the 1-year period, ACLO has performed better with a 5.31% return vs 3.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ARCM or ACLO?

ACLO is cheaper with a 0.20% expense ratio, compared with 0.50% for ARCM.

Which ETF pays a higher dividend yield, ARCM or ACLO?

ACLO has the higher dividend yield at 4.90%, compared with 3.73% for ARCM.

What is the main difference between ARCM and ACLO?

ARCM is categorized as Ultrashort Bond, while ACLO is CLO. They also come from different issuers: Arrow Funds and TCW. Their fees differ too: 0.50% for ARCM and 0.20% for ACLO.

Which has better risk-adjusted returns?

ARCM currently has the higher Sharpe Ratio (8.23 vs 7.32), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.