FRDM vs. CLOA

Last updated Jun 15, 2026

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

Performance

FRDM vs. CLOA - Performance Comparison

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

Returns By Period

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

FRDM

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

CLOA

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

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

FRDM vs. CLOA - Yearly Performance Comparison

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

Correlation

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

Return for Risk

FRDM vs. CLOA — Risk / Return Rank

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

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

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

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.

FRDM vs. CLOA - Risk-Adjusted Trends Comparison

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

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

FRDM vs. CLOA - Sharpe Ratio Comparison

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

FRDM vs. CLOA - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

FRDM vs. CLOA - Volatility Comparison

Freedom 100 Emerging Markets ETF (FRDM) has a higher volatility of 14.27% compared to BlackRock AAA CLO ETF (CLOA) at 0.13%. This indicates that FRDM's price experiences larger fluctuations and is considered to be riskier than CLOA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

FRDM vs. CLOA - Expense Ratio Comparison

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

Dividends

FRDM vs. CLOA - Dividend Comparison

FRDM's dividend yield for the trailing twelve months is around 1.56%, less than CLOA's 4.95% 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 FRDM and CLOA in my portfolio?

FRDM and CLOA 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, FRDM or CLOA?

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

Which ETF is better, FRDM or CLOA?

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, FRDM or CLOA?

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, FRDM or CLOA?

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

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

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

What is the main difference between FRDM and CLOA?

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

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.