FCLO vs. ILS

Last updated Jun 5, 2026

FCLO (Fidelity CLO ETF) and ILS (Brookmont Catastrophic Bond ETF) are both exchange-traded funds - FCLO is a CLO fund actively managed by Fidelity, while ILS is a Nontraditional Bonds fund actively managed by Brookmont. Both are actively managed. At a correlation of -0.17, they often move in opposite directions. FCLO charges 0.45%/yr vs 1.58%/yr for ILS.

Performance

FCLO vs. ILS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity CLO ETF (FCLO) and Brookmont Catastrophic Bond ETF (ILS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

FCLO

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

ILS

• 1D: -0.08%
• 1M: 0.28%
• YTD: 1.73%
• 6M: 2.17%
• 1Y: 7.59%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FCLO vs. ILS - Yearly Performance Comparison

	2026 (YTD)
FCLO Fidelity CLO ETF	1.72%
ILS Brookmont Catastrophic Bond ETF	1.43%

Correlation

The correlation between FCLO and ILS is -0.17, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (All Time) Calculated using the full available price history since Feb 13, 2026	-0.17

Return for Risk

FCLO vs. ILS — Risk / Return Rank

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

ILS

ILS Risk / Return Rank: 93
ILS Sharpe Ratio Rank: 85
ILS Sortino Ratio Rank: 93
ILS Omega Ratio Rank: 92
ILS Calmar Ratio Rank: 98
ILS Martin Ratio Rank: 97

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.

FCLO vs. ILS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity CLO ETF (FCLO) and Brookmont Catastrophic Bond ETF (ILS). 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

	FCLO	ILS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.75	—
Sharpe Ratio (All Time) Calculated using the full available price history	3.98	1.87	+2.11

Drawdowns

FCLO vs. ILS - Drawdown Comparison

The maximum FCLO drawdown since its inception was -0.58%, smaller than the maximum ILS drawdown of -1.56%. Use the drawdown chart below to compare losses from any high point for FCLO and ILS.

Drawdown Indicators

	FCLO	ILS	Difference
Max Drawdown Largest peak-to-trough decline	-0.58%	-1.56%	+0.98%
Max Drawdown (1Y) Largest decline over 1 year	—	-0.55%	—
Current Drawdown Current decline from peak	0.00%	-0.08%	+0.08%
Average Drawdown Average peak-to-trough decline	-0.09%	-0.25%	+0.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.17%	—

Volatility

Volatility by Period

	FCLO	ILS	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.88%	—
Volatility (6M) Calculated over the trailing 6-month period	—	1.69%	—
Volatility (1Y) Calculated over the trailing 1-year period	1.45%	2.77%	-1.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.45%	3.38%	-1.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.45%	3.38%	-1.93%

FCLO vs. ILS - Expense Ratio Comparison

FCLO has a 0.45% expense ratio, which is lower than ILS's 1.58% expense ratio.

Dividends

FCLO vs. ILS - Dividend Comparison

FCLO's dividend yield for the trailing twelve months is around 1.56%, less than ILS's 8.10% yield.

Position	TTM	2025
FCLO Fidelity CLO ETF	1.56%	0.00%
ILS Brookmont Catastrophic Bond ETF	8.10%	6.06%

Frequently Asked Questions

Can I hold both FCLO and ILS in my portfolio?

FCLO and ILS 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 ETF is better, FCLO or ILS?

On fees, FCLO is cheaper at 0.45% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, FCLO or ILS?

FCLO is cheaper with a 0.45% expense ratio, compared with 1.58% for ILS.

Which ETF pays a higher dividend yield, FCLO or ILS?

ILS has the higher dividend yield at 8.10%, compared with 1.56% for FCLO.

What is the main difference between FCLO and ILS?

FCLO is categorized as CLO, while ILS is Nontraditional Bonds. They also come from different issuers: Fidelity and Brookmont. Their fees differ too: 0.45% for FCLO and 1.58% for ILS.