FLM vs. ACLO

Last updated Aug 4, 2026

FLM (First Trust Global Engineering and Construction ETF) and ACLO (TCW AAA CLO ETF) are both exchange-traded funds - FLM is a Building & Construction fund tracking the ISE Global Engineering & Construction Index, while ACLO is a CLO fund actively managed by TCW. FLM is passively managed, while ACLO is actively managed. Their -0.26 correlation means they have often moved in opposite directions in the past. FLM charges 0.70%/yr vs 0.20%/yr for ACLO.

Performance

FLM vs. ACLO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Global Engineering and Construction ETF (FLM) and TCW AAA CLO ETF (ACLO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

FLM

• 1D: —
• 1M: —
• 6M: —
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: —

ACLO

• 1D: -0.02%
• 1M: 0.45%
• 6M: 2.36%
• YTD: 3.00%
• 1Y: 5.20%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 5.38%

*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)
ACLO TCW AAA CLO ETF	$1.35M	$998.55K	$1.41M

FLM vs. ACLO - Yearly Performance Comparison

	2026 (YTD)
FLM First Trust Global Engineering and Construction ETF	-4.55%
ACLO TCW AAA CLO ETF	0.78%

Correlation

The correlation between FLM and ACLO is -0.26, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 5, 2026	-0.26

Return for Risk

FLM vs. ACLO — Risk / Return Rank

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

FLM

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

ACLO

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

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.

FLM vs. ACLO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Global Engineering and Construction ETF (FLM) and TCW AAA CLO ETF (ACLO). 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.

	FLM	ACLO	Difference
Sharpe ratio: Return per unit of total volatility	—	7.29	—
Sortino ratio: Return per unit of downside risk	—	15.15	—
Omega ratio: Gain probability vs. loss probability	—	3.42	—
Calmar ratio: Return relative to maximum drawdown	—	19.49	—
Martin ratio: Return relative to average drawdown	—	164.43	—

Drawdowns

Drawdown Indicators

	FLM	ACLO	Difference
Max Drawdown Largest peak-to-trough decline	—	-1.01%	—
Max Drawdown (1Y) Largest decline over 1 year	—	-0.27%	—
Current Drawdown Current decline from peak	—	-0.02%	—
Average Drawdown Average peak-to-trough decline	—	-0.04%	—
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.03%	—

Volatility

Volatility by Period

	FLM	ACLO	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.19%	—
Volatility (6M) Calculated over the trailing 6-month period	—	0.56%	—
Volatility (1Y) Calculated over the trailing 1-year period	—	0.72%	—
Volatility (5Y) Calculated over the trailing 5-year period, annualized	—	1.05%	—
Volatility (10Y) Calculated over the trailing 10-year period, annualized	—	1.05%	—

FLM vs. ACLO - Expense Ratio Comparison

FLM has a 0.70% expense ratio, which is higher than ACLO's 0.20% expense ratio.

Dividends

FLM vs. ACLO - Dividend Comparison

FLM has not paid dividends to shareholders, while ACLO's dividend yield for the trailing twelve months is around 4.89%.

Position	TTM	2025	2024
ACLO TCW AAA CLO ETF	4.89%	4.87%	0.59%
FLM First Trust Global Engineering and Construction ETF	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FLM and ACLO in my portfolio?

FLM and ACLO have a correlation of -0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, FLM or ACLO?

On fees, ACLO 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, FLM or ACLO?

ACLO is cheaper with a 0.20% expense ratio, compared with 0.70% for FLM.

Which ETF pays a higher dividend yield, FLM or ACLO?

ACLO has the higher dividend yield at 4.89%, compared with 0.00% for FLM.

What is the main difference between FLM and ACLO?

FLM is categorized as Building & Construction, while ACLO is CLO. They also come from different issuers: First Trust and TCW. Their fees differ too: 0.70% for FLM and 0.20% for ACLO.