FAAA vs. NCLO

Last updated Jun 4, 2026

FAAA (Fidelity AAA CLO ETF) and NCLO (Nuveen AA-BBB CLO ETF) are both CLO funds. FAAA is actively managed, while NCLO is passively managed. At a correlation of -0.03, they often move in opposite directions. FAAA charges 0.20%/yr vs 0.26%/yr for NCLO.

Performance

FAAA vs. NCLO - Performance Comparison

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

Returns By Period

FAAA

• 1D: 0.02%
• 1M: 0.49%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

NCLO

• 1D: -0.16%
• 1M: 0.61%
• YTD: 1.96%
• 6M: 2.57%
• 1Y: 5.90%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FAAA vs. NCLO - Yearly Performance Comparison

	2026 (YTD)
FAAA Fidelity AAA CLO ETF	1.50%
NCLO Nuveen AA-BBB CLO ETF	1.57%

Correlation

The correlation between FAAA and NCLO 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 (All Time) Calculated using the full available price history since Feb 13, 2026	-0.03

Return for Risk

FAAA vs. NCLO — Risk / Return Rank

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

NCLO

NCLO Risk / Return Rank: 54
NCLO Sharpe Ratio Rank: 46
NCLO Sortino Ratio Rank: 41
NCLO Omega Ratio Rank: 77
NCLO Calmar Ratio Rank: 39
NCLO Martin Ratio Rank: 69

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.

FAAA vs. NCLO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity AAA CLO ETF (FAAA) and Nuveen AA-BBB CLO ETF (NCLO). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	FAAA	NCLO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	1.63	—
Sharpe Ratio (All Time) Calculated using the full available price history	5.41	1.59	+3.82

Drawdowns

FAAA vs. NCLO - Drawdown Comparison

The maximum FAAA drawdown since its inception was -0.55%, smaller than the maximum NCLO drawdown of -3.05%. Use the drawdown chart below to compare losses from any high point for FAAA and NCLO.

Drawdown Indicators

	FAAA	NCLO	Difference
Max Drawdown Largest peak-to-trough decline	-0.55%	-3.05%	+2.50%
Max Drawdown (1Y) Largest decline over 1 year	—	-3.05%	—
Current Drawdown Current decline from peak	0.00%	-0.35%	+0.35%
Average Drawdown Average peak-to-trough decline	-0.07%	-0.20%	+0.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.46%	—

Volatility

Volatility by Period

	FAAA	NCLO	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.14%	—
Volatility (6M) Calculated over the trailing 6-month period	—	3.46%	—
Volatility (1Y) Calculated over the trailing 1-year period	0.94%	3.64%	-2.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.94%	3.72%	-2.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.94%	3.72%	-2.78%

FAAA vs. NCLO - Expense Ratio Comparison

FAAA has a 0.20% expense ratio, which is lower than NCLO's 0.26% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FAAA vs. NCLO - Dividend Comparison

FAAA's dividend yield for the trailing twelve months is around 1.32%, less than NCLO's 5.78% yield.

Position	TTM	2025	2024
FAAA Fidelity AAA CLO ETF	1.32%	0.00%	0.00%
NCLO Nuveen AA-BBB CLO ETF	5.78%	6.09%	0.35%

Frequently Asked Questions

Can I hold both FAAA and NCLO in my portfolio?

FAAA and NCLO 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 ETF is better, FAAA or NCLO?

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, FAAA or NCLO?

FAAA is cheaper with a 0.20% expense ratio, compared with 0.26% for NCLO.

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

NCLO has the higher dividend yield at 5.78%, compared with 1.32% for FAAA.

What is the main difference between FAAA and NCLO?

They also come from different issuers: Fidelity and Nuveen. Their fees differ too: 0.20% for FAAA and 0.26% for NCLO.