CLOA vs. FRDM

Last updated Jun 14, 2026

CLOA (BlackRock AAA CLO ETF) and FRDM (Freedom 100 Emerging Markets ETF) are both exchange-traded funds - CLOA is a CLO fund actively managed by BlackRock, while FRDM is a Emerging Markets Diversified fund tracking the Life + Liberty Freedom 100 Emerging Markets Index. CLOA is actively managed, while FRDM is passively managed. Over the past 3 years, CLOA returned 6.62%/yr vs 34.29%/yr for FRDM. At a 0.08 correlation, their price movements are largely independent. CLOA charges 0.20%/yr vs 0.49%/yr for FRDM.

Performance

CLOA vs. FRDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BlackRock AAA CLO ETF (CLOA) and Freedom 100 Emerging Markets ETF (FRDM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CLOA achieves a 2.15% return, which is significantly lower than FRDM's 40.13% return.

CLOA

• 1D: 0.02%
• 1M: 0.30%
• YTD: 2.15%
• 6M: 2.54%
• 1Y: 5.12%
• 3Y*: 6.62%
• 5Y*: —
• 10Y*: —

FRDM

• 1D: 0.49%
• 1M: 9.04%
• YTD: 40.13%
• 6M: 46.37%
• 1Y: 87.32%
• 3Y*: 34.29%
• 5Y*: 18.68%
• 10Y*: —

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

CLOA vs. FRDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
CLOA BlackRock AAA CLO ETF	2.15%	5.44%	7.25%	8.38%
FRDM Freedom 100 Emerging Markets ETF	40.13%	61.27%	1.70%	15.11%

Correlation

The correlation between CLOA and FRDM is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.19
Correlation (3Y) Calculated over the trailing 3-year period	0.09
Correlation (All Time) Calculated using the full available price history since Jan 12, 2023	0.08

The correlation between CLOA and FRDM shifts across timeframes, from 0.08 (all time) to 0.19 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

CLOA vs. FRDM — Risk / Return Rank

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

CLOA

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

FRDM

FRDM Risk / Return Rank: 92
FRDM Sharpe Ratio Rank: 94
FRDM Sortino Ratio Rank: 90
FRDM Omega Ratio Rank: 92
FRDM Calmar Ratio Rank: 91
FRDM Martin Ratio Rank: 91

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.

CLOA vs. FRDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BlackRock AAA CLO ETF (CLOA) and Freedom 100 Emerging Markets ETF (FRDM). 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.

	CLOA	FRDM	Difference
Sharpe ratio: Return per unit of total volatility	7.39	3.15	+4.24
Sortino ratio: Return per unit of downside risk	13.73	3.68	+10.06
Omega ratio: Gain probability vs. loss probability	3.33	1.54	+1.78
Calmar ratio: Return relative to maximum drawdown	29.15	5.02	+24.13
Martin ratio: Return relative to average drawdown	145.81	19.36	+126.45

CLOA vs. FRDM - Sharpe Ratio Comparison

The current CLOA Sharpe Ratio is 7.39, which is higher than the FRDM Sharpe Ratio of 3.15. The chart below compares the historical Sharpe Ratios of CLOA and FRDM, 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

CLOA vs. FRDM - Drawdown Comparison

The maximum CLOA drawdown since its inception was -1.34%, smaller than the maximum FRDM drawdown of -40.49%. Use the drawdown chart below to compare losses from any high point for CLOA and FRDM.

Drawdown Indicators

	CLOA	FRDM	Difference
Max Drawdown Largest peak-to-trough decline	-1.34%	-40.49%	+39.15%
Max Drawdown (1Y) Largest decline over 1 year	-0.18%	-16.87%	+16.69%
Max Drawdown (3Y) Largest decline over 3 years	-1.13%	-16.87%	+15.74%
Max Drawdown (5Y) Largest decline over 5 years	—	-29.25%	—
Current Drawdown Current decline from peak	0.00%	-4.36%	+4.36%
Average Drawdown Average peak-to-trough decline	-0.05%	-7.09%	+7.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.04%	4.37%	-4.33%

Volatility

CLOA vs. FRDM - Volatility Comparison

The current volatility for BlackRock AAA CLO ETF (CLOA) is 0.13%, while Freedom 100 Emerging Markets ETF (FRDM) has a volatility of 14.27%. This indicates that CLOA experiences smaller price fluctuations and is considered to be less risky than FRDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CLOA	FRDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.13%	14.27%	-14.14%
Volatility (6M) Calculated over the trailing 6-month period	0.48%	24.39%	-23.91%
Volatility (1Y) Calculated over the trailing 1-year period	0.70%	26.86%	-26.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.31%	21.35%	-20.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.31%	23.09%	-21.78%

CLOA vs. FRDM - Expense Ratio Comparison

CLOA has a 0.20% expense ratio, which is lower than FRDM's 0.49% expense ratio.

Dividends

CLOA vs. FRDM - Dividend Comparison

CLOA's dividend yield for the trailing twelve months is around 4.95%, more than FRDM's 1.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
CLOA BlackRock AAA CLO ETF	4.95%	5.35%	6.01%	5.88%	0.00%	0.00%	0.00%	0.00%
FRDM Freedom 100 Emerging Markets ETF	1.56%	2.26%	2.53%	2.66%	2.72%	2.17%	1.11%	1.07%

Frequently Asked Questions

Can I hold both CLOA and FRDM in my portfolio?

CLOA and FRDM have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CLOA or FRDM?

FRDM has higher volatility (14.27%) compared to CLOA (0.13%). In terms of maximum drawdown, CLOA dropped -1.34% vs FRDM's -40.49%.

Which ETF is better, CLOA or FRDM?

On 3-year performance, FRDM leads with 34.29% vs 6.62% for CLOA. On fees, CLOA is cheaper at 0.20% per year. On volatility, CLOA has been the lower-risk option at 0.13%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CLOA or FRDM?

Over the 3-year period, FRDM has performed better with a 34.29% return vs 6.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CLOA or FRDM?

CLOA is cheaper with a 0.20% expense ratio, compared with 0.49% for FRDM.

Which ETF pays a higher dividend yield, CLOA or FRDM?

CLOA has the higher dividend yield at 4.95%, compared with 1.56% for FRDM.

What is the main difference between CLOA and FRDM?

CLOA is categorized as CLO, while FRDM is Emerging Markets Diversified. They also come from different issuers: BlackRock and Freedom Funds. Their fees differ too: 0.20% for CLOA and 0.49% for FRDM.

Which has better risk-adjusted returns?

CLOA currently has the higher Sharpe Ratio (7.39 vs 3.15), 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.