HWSM vs. ACLO

Last updated Jun 23, 2026

HWSM (Hotchkis & Wiley SMID Cap Diversified Value ETF) and ACLO (TCW AAA CLO ETF) are both exchange-traded funds - HWSM is a Mid Cap Value Equities fund actively managed by Hotchkis & Wiley, while ACLO is a CLO fund actively managed by TCW. Both are actively managed. Over the past year, HWSM returned 24.34% vs 5.31% for ACLO. At a 0.13 correlation, their price movements are largely independent. HWSM charges 0.55%/yr vs 0.20%/yr for ACLO.

Performance

HWSM vs. ACLO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Hotchkis & Wiley SMID Cap Diversified Value ETF (HWSM) and TCW AAA CLO ETF (ACLO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HWSM achieves a 10.72% return, which is significantly higher than ACLO's 2.41% return.

HWSM

• 1D: 0.11%
• 1M: 2.13%
• YTD: 10.72%
• 6M: 8.98%
• 1Y: 24.34%
• 3Y*: —
• 5Y*: —
• 10Y*: —

ACLO

• 1D: 0.00%
• 1M: 0.41%
• YTD: 2.41%
• 6M: 2.53%
• 1Y: 5.31%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

HWSM vs. ACLO - Yearly Performance Comparison

	2026 (YTD)	2025
HWSM Hotchkis & Wiley SMID Cap Diversified Value ETF	10.72%	12.92%
ACLO TCW AAA CLO ETF	2.41%	4.25%

Correlation

The correlation between HWSM and ACLO is 0.01, 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 (1Y) Calculated over the trailing 1-year period	0.01
Correlation (All Time) Calculated using the full available price history since Mar 31, 2025	0.13

The correlation between HWSM and ACLO shifts across timeframes, from 0.01 (1 year) to 0.13 (all time), reflecting how their relationship changes across market environments.

Return for Risk

HWSM vs. ACLO — Risk / Return Rank

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

HWSM

HWSM Risk / Return Rank: 48
HWSM Sharpe Ratio Rank: 46
HWSM Sortino Ratio Rank: 49
HWSM Omega Ratio Rank: 44
HWSM Calmar Ratio Rank: 50
HWSM Martin Ratio Rank: 49

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) 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.

HWSM vs. ACLO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Hotchkis & Wiley SMID Cap Diversified Value ETF (HWSM) 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.

	HWSM	ACLO	Difference
Sharpe ratio: Return per unit of total volatility	1.57	7.32	-5.76
Sortino ratio: Return per unit of downside risk	2.35	15.16	-12.81
Omega ratio: Gain probability vs. loss probability	1.28	3.44	-2.16
Calmar ratio: Return relative to maximum drawdown	2.39	19.90	-17.51
Martin ratio: Return relative to average drawdown	8.00	165.46	-157.47

HWSM vs. ACLO - Sharpe Ratio Comparison

The current HWSM Sharpe Ratio is 1.57, which is lower than the ACLO Sharpe Ratio of 7.32. The chart below compares the historical Sharpe Ratios of HWSM and ACLO, 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

HWSM vs. ACLO - Drawdown Comparison

The maximum HWSM drawdown since its inception was -15.67%, which is greater than ACLO's maximum drawdown of -1.01%. Use the drawdown chart below to compare losses from any high point for HWSM and ACLO.

Drawdown Indicators

	HWSM	ACLO	Difference
Max Drawdown Largest peak-to-trough decline	-15.67%	-1.01%	-14.66%
Max Drawdown (1Y) Largest decline over 1 year	-10.23%	-0.27%	-9.96%
Current Drawdown Current decline from peak	-1.94%	0.00%	-1.94%
Average Drawdown Average peak-to-trough decline	-2.68%	-0.04%	-2.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.05%	0.03%	+3.02%

Volatility

HWSM vs. ACLO - Volatility Comparison

Hotchkis & Wiley SMID Cap Diversified Value ETF (HWSM) has a higher volatility of 3.41% compared to TCW AAA CLO ETF (ACLO) at 0.19%. This indicates that HWSM's price experiences larger fluctuations and is considered to be riskier than ACLO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HWSM	ACLO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.41%	0.19%	+3.22%
Volatility (6M) Calculated over the trailing 6-month period	10.42%	0.58%	+9.84%
Volatility (1Y) Calculated over the trailing 1-year period	15.65%	0.73%	+14.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.36%	1.07%	+19.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.36%	1.07%	+19.29%

HWSM vs. ACLO - Expense Ratio Comparison

HWSM has a 0.55% expense ratio, which is higher than ACLO's 0.20% expense ratio.

Dividends

HWSM vs. ACLO - Dividend Comparison

HWSM's dividend yield for the trailing twelve months is around 1.20%, less than ACLO's 4.90% yield.

Position	TTM	2025	2024
ACLO TCW AAA CLO ETF	4.90%	4.87%	0.59%
HWSM Hotchkis & Wiley SMID Cap Diversified Value ETF	1.20%	1.33%	0.00%

Frequently Asked Questions

Can I hold both HWSM and ACLO in my portfolio?

HWSM and ACLO have a correlation of 0.01, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HWSM or ACLO?

HWSM has higher volatility (3.41%) compared to ACLO (0.19%). In terms of maximum drawdown, HWSM dropped -15.67% vs ACLO's -1.01%.

Which ETF is better, HWSM or ACLO?

On 1-year performance, HWSM leads with 24.34% vs 5.31% for ACLO. On fees, ACLO is cheaper at 0.20% per year. On volatility, ACLO has been the lower-risk option at 0.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HWSM or ACLO?

Over the 1-year period, HWSM has performed better with a 24.34% return vs 5.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HWSM or ACLO?

ACLO is cheaper with a 0.20% expense ratio, compared with 0.55% for HWSM.

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

ACLO has the higher dividend yield at 4.90%, compared with 1.20% for HWSM.

What is the main difference between HWSM and ACLO?

HWSM is categorized as Mid Cap Value Equities, while ACLO is CLO. They also come from different issuers: Hotchkis & Wiley and TCW. Their fees differ too: 0.55% for HWSM and 0.20% for ACLO.

Which has better risk-adjusted returns?

ACLO currently has the higher Sharpe Ratio (7.32 vs 1.57), 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.