BCLO vs. FAAA

Last updated Jun 3, 2026

BCLO (iShares BBB-B CLO Active ETF) and FAAA (Fidelity AAA CLO ETF) are both CLO funds. BCLO is passively managed, while FAAA is actively managed. At a 0.18 correlation, their price movements are largely independent. BCLO charges 0.45%/yr vs 0.20%/yr for FAAA.

Performance

BCLO vs. FAAA - Performance Comparison

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

Returns By Period

BCLO

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

FAAA

• 1D: 0.00%
• 1M: 0.40%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BCLO vs. FAAA - Yearly Performance Comparison

	2026 (YTD)
BCLO iShares BBB-B CLO Active ETF	1.98%
FAAA Fidelity AAA CLO ETF	1.48%

Correlation

The correlation between BCLO and FAAA is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Feb 13, 2026	0.18

Return for Risk

BCLO vs. FAAA — 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

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. FAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares BBB-B CLO Active ETF (BCLO) and Fidelity AAA CLO ETF (FAAA). 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	FAAA	Difference
Sharpe ratio Return per unit of total volatility	3.36	—	—
Sortino ratio Return per unit of downside risk	5.33	—	—
Omega ratio Gain probability vs. loss probability	1.87	—	—
Calmar ratio Return relative to maximum drawdown	3.60	—	—
Martin ratio Return relative to average drawdown	13.32	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	BCLO	FAAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.36	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.41	5.38	-3.97

Drawdowns

BCLO vs. FAAA - Drawdown Comparison

The maximum BCLO drawdown since its inception was -4.45%, which is greater than FAAA's maximum drawdown of -0.55%. Use the drawdown chart below to compare losses from any high point for BCLO and FAAA.

Drawdown Indicators

	BCLO	FAAA	Difference
Max Drawdown Largest peak-to-trough decline	-4.45%	-0.55%	-3.90%
Max Drawdown (1Y) Largest decline over 1 year	-1.92%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.40%	-0.08%	-0.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.52%	—	—

Volatility

Volatility by Period

	BCLO	FAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.66%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.65%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	2.03%	0.95%	+1.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.40%	0.95%	+3.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.40%	0.95%	+3.45%

BCLO vs. FAAA - Expense Ratio Comparison

BCLO has a 0.45% expense ratio, which is higher than FAAA's 0.20% expense ratio.

Dividends

BCLO vs. FAAA - Dividend Comparison

BCLO's dividend yield for the trailing twelve months is around 6.59%, more than FAAA's 1.32% yield.

Position	TTM	2025
BCLO iShares BBB-B CLO Active ETF	6.59%	6.45%
FAAA Fidelity AAA CLO ETF	1.32%	0.00%

Frequently Asked Questions

Can I hold both BCLO and FAAA in my portfolio?

BCLO and FAAA have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, BCLO or FAAA?

On fees, FAAA is cheaper at 0.20% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, BCLO or FAAA?

FAAA is cheaper with a 0.20% expense ratio, compared with 0.45% for BCLO.

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

BCLO has the higher dividend yield at 6.59%, compared with 1.32% for FAAA.

What is the main difference between BCLO and FAAA?

They also come from different issuers: iShares and Fidelity. Their fees differ too: 0.45% for BCLO and 0.20% for FAAA.