IBTG vs. ICLO

Last updated Jun 24, 2026

IBTG (iShares iBonds Dec 2026 Term Treasury ETF) and ICLO (Invesco Aaa CLO Floating Rate Note ETF) are both exchange-traded funds - IBTG is a Government Bonds fund tracking the ICE 2026 Maturity US Treasury Index, while ICLO is a CLO fund actively managed by Invesco. IBTG is passively managed, while ICLO is actively managed. Over the past 3 years, IBTG returned 4.28%/yr vs 6.60%/yr for ICLO. At a correlation of -0.01, they often move in opposite directions. IBTG charges 0.07%/yr vs 0.26%/yr for ICLO.

Performance

IBTG vs. ICLO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds Dec 2026 Term Treasury ETF (IBTG) and Invesco Aaa CLO Floating Rate Note ETF (ICLO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IBTG achieves a 1.62% return, which is significantly lower than ICLO's 2.36% return.

IBTG

• 1D: 0.02%
• 1M: 0.23%
• YTD: 1.62%
• 6M: 1.66%
• 1Y: 3.96%
• 3Y*: 4.28%
• 5Y*: 0.91%
• 10Y*: —

ICLO

• 1D: -0.02%
• 1M: 0.59%
• YTD: 2.36%
• 6M: 2.45%
• 1Y: 5.40%
• 3Y*: 6.60%
• 5Y*: —
• 10Y*: —

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

IBTG vs. ICLO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
IBTG iShares iBonds Dec 2026 Term Treasury ETF	1.62%	4.40%	3.97%	4.34%	-0.60%
ICLO Invesco Aaa CLO Floating Rate Note ETF	2.36%	5.27%	7.05%	8.90%	0.38%

Correlation

The correlation between IBTG and ICLO is -0.07, 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	-0.07
Correlation (3Y) Calculated over the trailing 3-year period	-0.03
Correlation (All Time) Calculated using the full available price history since Dec 9, 2022	-0.01

Return for Risk

IBTG vs. ICLO — Risk / Return Rank

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

IBTG

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

ICLO

ICLO Risk / Return Rank: 97
ICLO Sharpe Ratio Rank: 96
ICLO Sortino Ratio Rank: 97
ICLO Omega Ratio Rank: 97
ICLO Calmar Ratio Rank: 98
ICLO Martin Ratio Rank: 98

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.

IBTG vs. ICLO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2026 Term Treasury ETF (IBTG) and Invesco Aaa CLO Floating Rate Note ETF (ICLO). 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.

	IBTG	ICLO	Difference
Sharpe ratio: Return per unit of total volatility	7.90	3.92	+3.97
Sortino ratio: Return per unit of downside risk	19.48	6.57	+12.91
Omega ratio: Gain probability vs. loss probability	4.25	1.92	+2.33
Calmar ratio: Return relative to maximum drawdown	60.79	15.43	+45.37
Martin ratio: Return relative to average drawdown	246.24	64.24	+182.01

IBTG vs. ICLO - Sharpe Ratio Comparison

The current IBTG Sharpe Ratio is 7.90, which is higher than the ICLO Sharpe Ratio of 3.92. The chart below compares the historical Sharpe Ratios of IBTG and ICLO, 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

IBTG vs. ICLO - Drawdown Comparison

The maximum IBTG drawdown since its inception was -13.62%, which is greater than ICLO's maximum drawdown of -3.47%. Use the drawdown chart below to compare losses from any high point for IBTG and ICLO.

Drawdown Indicators

	IBTG	ICLO	Difference
Max Drawdown Largest peak-to-trough decline	-13.62%	-3.47%	-10.15%
Max Drawdown (1Y) Largest decline over 1 year	-0.07%	-0.35%	+0.28%
Max Drawdown (3Y) Largest decline over 3 years	-1.11%	-3.47%	+2.36%
Max Drawdown (5Y) Largest decline over 5 years	-12.31%	—	—
Current Drawdown Current decline from peak	0.00%	-0.11%	+0.11%
Average Drawdown Average peak-to-trough decline	-4.85%	-0.06%	-4.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.02%	0.08%	-0.06%

Volatility

IBTG vs. ICLO - Volatility Comparison

The current volatility for iShares iBonds Dec 2026 Term Treasury ETF (IBTG) is 0.12%, while Invesco Aaa CLO Floating Rate Note ETF (ICLO) has a volatility of 0.52%. This indicates that IBTG experiences smaller price fluctuations and is considered to be less risky than ICLO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IBTG	ICLO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.12%	0.52%	-0.40%
Volatility (6M) Calculated over the trailing 6-month period	0.30%	0.88%	-0.58%
Volatility (1Y) Calculated over the trailing 1-year period	0.50%	1.38%	-0.88%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.25%	2.42%	+0.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.44%	2.42%	+1.02%

IBTG vs. ICLO - Expense Ratio Comparison

IBTG has a 0.07% expense ratio, which is lower than ICLO'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

IBTG vs. ICLO - Dividend Comparison

IBTG's dividend yield for the trailing twelve months is around 3.95%, less than ICLO's 5.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
IBTG iShares iBonds Dec 2026 Term Treasury ETF	3.95%	4.03%	4.08%	3.61%	2.06%	0.66%	0.53%
ICLO Invesco Aaa CLO Floating Rate Note ETF	5.02%	5.49%	6.51%	7.01%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IBTG and ICLO in my portfolio?

IBTG and ICLO have a correlation of -0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IBTG or ICLO?

ICLO has higher volatility (0.52%) compared to IBTG (0.12%). In terms of maximum drawdown, IBTG dropped -13.62% vs ICLO's -3.47%.

Which ETF is better, IBTG or ICLO?

On 3-year performance, ICLO leads with 6.60% vs 4.28% for IBTG. On fees, IBTG is cheaper at 0.07% per year. On volatility, IBTG has been the lower-risk option at 0.12%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IBTG or ICLO?

Over the 3-year period, ICLO has performed better with a 6.60% return vs 4.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IBTG or ICLO?

IBTG is cheaper with a 0.07% expense ratio, compared with 0.26% for ICLO.

Which ETF pays a higher dividend yield, IBTG or ICLO?

ICLO has the higher dividend yield at 5.02%, compared with 3.95% for IBTG.

What is the main difference between IBTG and ICLO?

IBTG is categorized as Government Bonds, while ICLO is CLO. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.07% for IBTG and 0.26% for ICLO.

Which has better risk-adjusted returns?

IBTG currently has the higher Sharpe Ratio (7.90 vs 3.92), 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.