BCLO vs. AAA

Last updated Jun 3, 2026

BCLO (iShares BBB-B CLO Active ETF) and AAA (AAF First Priority CLO Bond ETF) are both CLO funds. BCLO is passively managed, while AAA is actively managed. Over the past year, BCLO returned 6.78% vs 5.55% for AAA. At a 0.07 correlation, their price movements are largely independent. BCLO charges 0.45%/yr vs 0.25%/yr for AAA.

Performance

BCLO vs. AAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares BBB-B CLO Active ETF (BCLO) and AAF First Priority CLO Bond ETF (AAA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BCLO achieves a 2.74% return, which is significantly higher than AAA's 2.08% return.

BCLO

• 1D: 0.00%
• 1M: 0.79%
• YTD: 2.74%
• 6M: 3.15%
• 1Y: 6.78%
• 3Y*: —
• 5Y*: —
• 10Y*: —

AAA

• 1D: 0.24%
• 1M: 0.87%
• YTD: 2.08%
• 6M: 2.64%
• 1Y: 5.55%
• 3Y*: 6.58%
• 5Y*: 4.69%
• 10Y*: —

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

BCLO vs. AAA - Yearly Performance Comparison

	2026 (YTD)	2025
BCLO iShares BBB-B CLO Active ETF	2.74%	5.43%
AAA AAF First Priority CLO Bond ETF	2.08%	4.41%

Correlation

The correlation between BCLO and AAA is -0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.03
Correlation (All Time) Calculated using the full available price history since Jan 31, 2025	0.07

The correlation between BCLO and AAA shifts across timeframes, from -0.03 (1 year) to 0.07 (all time), reflecting how their relationship changes across market environments.

Return for Risk

BCLO vs. AAA — Risk / Return Rank

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

BCLO

BCLO Risk / Return Rank: 85
BCLO Sharpe Ratio Rank: 92
BCLO Sortino Ratio Rank: 95
BCLO Omega Ratio Rank: 97
BCLO Calmar Ratio Rank: 71
BCLO Martin Ratio Rank: 70

AAA

AAA Risk / Return Rank: 87
AAA Sharpe Ratio Rank: 74
AAA Sortino Ratio Rank: 90
AAA Omega Ratio Rank: 80
AAA Calmar Ratio Rank: 96
AAA Martin Ratio Rank: 95

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.

BCLO vs. AAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares BBB-B CLO Active ETF (BCLO) and AAF First Priority CLO Bond ETF (AAA). 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.

	BCLO	AAA	Difference
Sharpe ratio Return per unit of total volatility	3.36	2.44	+0.92
Sortino ratio Return per unit of downside risk	5.33	4.23	+1.10
Omega ratio Gain probability vs. loss probability	1.87	1.49	+0.38
Calmar ratio Return relative to maximum drawdown	3.60	9.70	-6.10
Martin ratio Return relative to average drawdown	13.32	30.14	-16.82
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BCLO vs. AAA - Sharpe Ratio Comparison

The current BCLO Sharpe Ratio is 3.36, which is higher than the AAA Sharpe Ratio of 2.44. The chart below compares the historical Sharpe Ratios of BCLO and AAA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BCLO	AAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.36	2.44	+0.92
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	2.07	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.41	1.95	-0.54

Drawdowns

BCLO vs. AAA - Drawdown Comparison

The maximum BCLO drawdown since its inception was -4.45%, which is greater than AAA's maximum drawdown of -2.63%. Use the drawdown chart below to compare losses from any high point for BCLO and AAA.

Drawdown Indicators

	BCLO	AAA	Difference
Max Drawdown Largest peak-to-trough decline	-4.45%	-2.63%	-1.82%
Max Drawdown (1Y) Largest decline over 1 year	-1.92%	-0.60%	-1.32%
Max Drawdown (3Y) Largest decline over 3 years	—	-2.40%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-2.63%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.40%	-0.30%	-0.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.52%	0.19%	+0.33%

Volatility

BCLO vs. AAA - Volatility Comparison

iShares BBB-B CLO Active ETF (BCLO) and AAF First Priority CLO Bond ETF (AAA) have volatilities of 0.66% and 0.69%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BCLO	AAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.66%	0.69%	-0.03%
Volatility (6M) Calculated over the trailing 6-month period	1.65%	1.75%	-0.10%
Volatility (1Y) Calculated over the trailing 1-year period	2.03%	2.30%	-0.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.40%	2.27%	+2.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.40%	2.14%	+2.26%

BCLO vs. AAA - Expense Ratio Comparison

BCLO has a 0.45% expense ratio, which is higher than AAA's 0.25% expense ratio.

Dividends

BCLO vs. AAA - Dividend Comparison

BCLO's dividend yield for the trailing twelve months is around 6.59%, more than AAA's 4.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
AAA AAF First Priority CLO Bond ETF	4.89%	5.11%	6.17%	6.11%	2.78%	1.06%	0.32%
BCLO iShares BBB-B CLO Active ETF	6.59%	6.45%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BCLO and AAA in my portfolio?

BCLO and AAA have a correlation of -0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BCLO or AAA?

AAA has higher volatility (0.69%) compared to BCLO (0.66%). In terms of maximum drawdown, BCLO dropped -4.45% vs AAA's -2.63%.

Which ETF is better, BCLO or AAA?

On 1-year performance, BCLO leads with 6.78% vs 5.55% for AAA. On fees, AAA is cheaper at 0.25% 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, BCLO or AAA?

Over the 1-year period, BCLO has performed better with a 6.78% return vs 5.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BCLO or AAA?

AAA is cheaper with a 0.25% expense ratio, compared with 0.45% for BCLO.

Which ETF pays a higher dividend yield, BCLO or AAA?

BCLO has the higher dividend yield at 6.59%, compared with 4.89% for AAA.

What is the main difference between BCLO and AAA?

They also come from different issuers: iShares and Alternative Access Funds LLC. Their fees differ too: 0.45% for BCLO and 0.25% for AAA.

Which has better risk-adjusted returns?

BCLO currently has the higher Sharpe Ratio (3.36 vs 2.44), 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.