ICLO vs. BKLN

Last updated Jun 24, 2026

ICLO (Invesco Aaa CLO Floating Rate Note ETF) and BKLN (Invesco Senior Loan ETF) are both exchange-traded funds - ICLO is a CLO fund actively managed by Invesco, while BKLN is a Bank Loan fund tracking the Morningstar LSTA US Leveraged Loan 100 Index. ICLO is actively managed, while BKLN is passively managed. Over the past 3 years, ICLO returned 6.60%/yr vs 7.20%/yr for BKLN. At a 0.12 correlation, their price movements are largely independent. ICLO charges 0.26%/yr vs 0.65%/yr for BKLN.

Performance

ICLO vs. BKLN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Aaa CLO Floating Rate Note ETF (ICLO) and Invesco Senior Loan ETF (BKLN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ICLO achieves a 2.36% return, which is significantly higher than BKLN's -0.13% return.

ICLO

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

BKLN

• 1D: -0.10%
• 1M: -0.14%
• YTD: -0.13%
• 6M: 0.06%
• 1Y: 4.27%
• 3Y*: 7.20%
• 5Y*: 5.11%
• 10Y*: 4.32%

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

ICLO vs. BKLN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
ICLO Invesco Aaa CLO Floating Rate Note ETF	2.36%	5.27%	7.05%	8.90%	0.38%
BKLN Invesco Senior Loan ETF	-0.13%	6.88%	8.21%	12.53%	-0.17%

Correlation

The correlation between ICLO and BKLN is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (3Y) Calculated over the trailing 3-year period	0.12
Correlation (All Time) Calculated using the full available price history since Dec 9, 2022	0.12

Return for Risk

ICLO vs. BKLN — Risk / Return Rank

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

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

BKLN

BKLN Risk / Return Rank: 44
BKLN Sharpe Ratio Rank: 46
BKLN Sortino Ratio Rank: 48
BKLN Omega Ratio Rank: 60
BKLN Calmar Ratio Rank: 29
BKLN Martin Ratio Rank: 37

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.

ICLO vs. BKLN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Aaa CLO Floating Rate Note ETF (ICLO) and Invesco Senior Loan ETF (BKLN). 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.

	ICLO	BKLN	Difference
Sharpe ratio: Return per unit of total volatility	3.92	1.55	+2.37
Sortino ratio: Return per unit of downside risk	6.57	2.28	+4.29
Omega ratio: Gain probability vs. loss probability	1.92	1.35	+0.57
Calmar ratio: Return relative to maximum drawdown	15.43	1.39	+14.03
Martin ratio: Return relative to average drawdown	64.24	5.44	+58.80

ICLO vs. BKLN - Sharpe Ratio Comparison

The current ICLO Sharpe Ratio is 3.92, which is higher than the BKLN Sharpe Ratio of 1.55. The chart below compares the historical Sharpe Ratios of ICLO and BKLN, 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

ICLO vs. BKLN - Drawdown Comparison

The maximum ICLO drawdown since its inception was -3.47%, smaller than the maximum BKLN drawdown of -24.17%. Use the drawdown chart below to compare losses from any high point for ICLO and BKLN.

Drawdown Indicators

	ICLO	BKLN	Difference
Max Drawdown Largest peak-to-trough decline	-3.47%	-24.17%	+20.70%
Max Drawdown (1Y) Largest decline over 1 year	-0.35%	-3.07%	+2.72%
Max Drawdown (3Y) Largest decline over 3 years	-3.47%	-3.55%	+0.08%
Max Drawdown (5Y) Largest decline over 5 years	—	-7.31%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-24.17%	—
Current Drawdown Current decline from peak	-0.11%	-0.57%	+0.46%
Average Drawdown Average peak-to-trough decline	-0.06%	-1.09%	+1.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.08%	0.79%	-0.71%

Volatility

ICLO vs. BKLN - Volatility Comparison

Invesco Aaa CLO Floating Rate Note ETF (ICLO) and Invesco Senior Loan ETF (BKLN) have volatilities of 0.52% and 0.54%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ICLO	BKLN	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.52%	0.54%	-0.02%
Volatility (6M) Calculated over the trailing 6-month period	0.88%	2.54%	-1.66%
Volatility (1Y) Calculated over the trailing 1-year period	1.38%	2.76%	-1.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.42%	4.48%	-2.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.42%	6.43%	-4.01%

ICLO vs. BKLN - Expense Ratio Comparison

ICLO has a 0.26% expense ratio, which is lower than BKLN's 0.65% expense ratio.

Dividends

ICLO vs. BKLN - Dividend Comparison

ICLO's dividend yield for the trailing twelve months is around 5.02%, less than BKLN's 6.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BKLN Invesco Senior Loan ETF	6.59%	6.95%	8.41%	8.59%	4.93%	3.11%	3.56%	4.86%	4.52%	3.50%	4.54%	4.12%
ICLO Invesco Aaa CLO Floating Rate Note ETF	5.02%	5.49%	6.51%	7.01%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ICLO and BKLN in my portfolio?

ICLO and BKLN have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ICLO or BKLN?

BKLN has higher volatility (0.54%) compared to ICLO (0.52%). In terms of maximum drawdown, ICLO dropped -3.47% vs BKLN's -24.17%.

Which ETF is better, ICLO or BKLN?

On 3-year performance, BKLN leads with 7.20% vs 6.60% for ICLO. On fees, ICLO is cheaper at 0.26% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ICLO or BKLN?

Over the 3-year period, BKLN has performed better with a 7.20% return vs 6.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ICLO or BKLN?

ICLO is cheaper with a 0.26% expense ratio, compared with 0.65% for BKLN.

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

BKLN has the higher dividend yield at 6.59%, compared with 5.02% for ICLO.

What is the main difference between ICLO and BKLN?

ICLO is categorized as CLO, while BKLN is Bank Loan. Their fees differ too: 0.26% for ICLO and 0.65% for BKLN.

Which has better risk-adjusted returns?

ICLO currently has the higher Sharpe Ratio (3.92 vs 1.55), 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.