BCLO vs. CAOS

Last updated Aug 2, 2026

BCLO (iShares BBB-B CLO Active ETF) and CAOS (Alpha Architect Tail Risk ETF) are both exchange-traded funds - BCLO is a CLO fund tracking the JP Morgan CLOIE High Quality Mezzanine Index, while CAOS is a Options Trading fund actively managed by Alpha Architect. BCLO is passively managed, while CAOS is actively managed. Over the past year, BCLO returned 5.97% vs 1.73% for CAOS. Their -0.12 correlation means they have often moved in opposite directions in the past. BCLO charges 0.45%/yr vs 0.63%/yr for CAOS.

Performance

BCLO vs. CAOS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares BBB-B CLO Active ETF (BCLO) and Alpha Architect Tail Risk ETF (CAOS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BCLO achieves a 3.10% return, which is significantly higher than CAOS's 0.76% return.

BCLO

• 1D: 0.09%
• 1M: 0.06%
• 6M: 2.26%
• YTD: 3.10%
• 1Y: 5.97%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 5.72%

CAOS

• 1D: -0.06%
• 1M: -0.01%
• 6M: 0.16%
• YTD: 0.76%
• 1Y: 1.73%
• 3Y*: 3.48%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 4.70%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
BCLO iShares BBB-B CLO Active ETF	$627.81K	$426.45K	$315.81K
CAOS Alpha Architect Tail Risk ETF	$6.81M	$5.39M	$5.09M

BCLO vs. CAOS - Yearly Performance Comparison

	2026 (YTD)	2025
BCLO iShares BBB-B CLO Active ETF	3.10%	5.41%
CAOS Alpha Architect Tail Risk ETF	0.76%	2.30%

Correlation

The correlation between BCLO and CAOS is -0.17, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.17
Correlation (All Time) Calculated using the full available price history since Jan 30, 2025	-0.12

Return for Risk

BCLO vs. CAOS — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

BCLO

BCLO Risk / Return Rank: 91
BCLO Sharpe Ratio Rank: 96
BCLO Sortino Ratio Rank: 96
BCLO Omega Ratio Rank: 97
BCLO Calmar Ratio Rank: 83
BCLO Martin Ratio Rank: 83

CAOS

CAOS Risk / Return Rank: 56
CAOS Sharpe Ratio Rank: 49
CAOS Sortino Ratio Rank: 55
CAOS Omega Ratio Rank: 54
CAOS Calmar Ratio Rank: 72
CAOS Martin Ratio Rank: 48

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

BCLO vs. CAOS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares BBB-B CLO Active ETF (BCLO) and Alpha Architect Tail Risk ETF (CAOS). 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.

	BCLO	CAOS	Difference
Sharpe ratio: Return per unit of total volatility	2.89	1.19	+1.70
Sortino ratio: Return per unit of downside risk	4.56	1.89	+2.67
Omega ratio: Gain probability vs. loss probability	1.72	1.24	+0.48
Calmar ratio: Return relative to maximum drawdown	3.06	2.47	+0.59
Martin ratio: Return relative to average drawdown	11.27	5.45	+5.83

BCLO vs. CAOS - Sharpe Ratio Comparison

The current BCLO Sharpe Ratio is 2.89, which is higher than the CAOS Sharpe Ratio of 1.19. The chart below compares the historical Sharpe Ratios of BCLO and CAOS, 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

BCLO vs. CAOS - Drawdown Comparison

The maximum BCLO drawdown since its inception was -4.45%, which is greater than CAOS's maximum drawdown of -3.89%. Use the drawdown chart below to compare losses from any high point for BCLO and CAOS.

Drawdown Indicators

	BCLO	CAOS	Difference
Max Drawdown Largest peak-to-trough decline	-4.45%	-3.89%	-0.56%
Max Drawdown (1Y) Largest decline over 1 year	-1.92%	-0.76%	-1.16%
Max Drawdown (3Y) Largest decline over 3 years	—	-3.60%	—
Current Drawdown Current decline from peak	-0.11%	-1.13%	+1.02%
Average Drawdown Average peak-to-trough decline	-0.37%	-0.92%	+0.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.52%	0.34%	+0.18%

Volatility

BCLO vs. CAOS - Volatility Comparison

The current volatility for iShares BBB-B CLO Active ETF (BCLO) is 0.31%, while Alpha Architect Tail Risk ETF (CAOS) has a volatility of 0.51%. This indicates that BCLO experiences smaller price fluctuations and is considered to be less risky than CAOS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BCLO	CAOS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.31%	0.51%	-0.20%
Volatility (6M) Calculated over the trailing 6-month period	1.63%	1.07%	+0.56%
Volatility (1Y) Calculated over the trailing 1-year period	2.03%	1.57%	+0.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.16%	4.18%	-0.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.16%	4.18%	-0.02%

BCLO vs. CAOS - Expense Ratio Comparison

BCLO has a 0.45% expense ratio, which is lower than CAOS's 0.63% expense ratio.

Dividends

BCLO vs. CAOS - Dividend Comparison

BCLO's dividend yield for the trailing twelve months is around 6.57%, while CAOS has not paid dividends to shareholders.

Position	TTM	2025
BCLO iShares BBB-B CLO Active ETF	5.97%	6.45%
CAOS Alpha Architect Tail Risk ETF	0.00%	0.00%

Frequently Asked Questions

Can I hold both BCLO and CAOS in my portfolio?

BCLO and CAOS have a correlation of -0.17, 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 CAOS?

CAOS has higher volatility (0.51%) compared to BCLO (0.31%). In terms of maximum drawdown, BCLO dropped -4.45% vs CAOS's -3.89%.

Which ETF is better, BCLO or CAOS?

On 1-year performance, BCLO leads with 5.97% vs 1.73% for CAOS. On fees, BCLO is cheaper at 0.45% per year. On volatility, BCLO has been the lower-risk option at 0.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BCLO or CAOS?

Over the 1-year period, BCLO has performed better with a 5.97% return vs 1.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BCLO or CAOS?

BCLO is cheaper with a 0.45% expense ratio, compared with 0.63% for CAOS.

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

BCLO has the higher dividend yield at 5.97%, compared with 0.00% for CAOS.

What is the main difference between BCLO and CAOS?

BCLO is categorized as CLO, while CAOS is Options Trading. They also come from different issuers: iShares and Alpha Architect. Their fees differ too: 0.45% for BCLO and 0.63% for CAOS.

Which has better risk-adjusted returns?

BCLO currently has the higher Sharpe Ratio (2.89 vs 1.19), 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.