KBWB vs. PCLO

Last updated Jun 23, 2026

KBWB (Invesco KBW Bank ETF) and PCLO (Virtus SEIX AAA Private Credit CLO ETF) are both exchange-traded funds - KBWB is a Financials Equities fund tracking the KBW Nasdaq Bank Index, while PCLO is a CLO fund actively managed by Virtus. KBWB is passively managed, while PCLO is actively managed. Over the past year, KBWB returned 41.92% vs 5.22% for PCLO. At a 0.05 correlation, their price movements are largely independent. KBWB charges 0.35%/yr vs 0.29%/yr for PCLO.

Performance

KBWB vs. PCLO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco KBW Bank ETF (KBWB) and Virtus SEIX AAA Private Credit CLO ETF (PCLO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KBWB achieves a 12.18% return, which is significantly higher than PCLO's 2.15% return.

KBWB

• 1D: 1.42%
• 1M: 8.59%
• YTD: 12.18%
• 6M: 10.15%
• 1Y: 41.92%
• 3Y*: 36.76%
• 5Y*: 11.16%
• 10Y*: 13.99%

PCLO

• 1D: -0.02%
• 1M: 0.28%
• YTD: 2.15%
• 6M: 2.33%
• 1Y: 5.22%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

KBWB vs. PCLO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
KBWB Invesco KBW Bank ETF	12.18%	32.05%	-6.41%
PCLO Virtus SEIX AAA Private Credit CLO ETF	2.15%	5.39%	0.46%

Correlation

The correlation between KBWB and PCLO is -0.13, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.13
Correlation (All Time) Calculated using the full available price history since Dec 3, 2024	0.05

The correlation between KBWB and PCLO shifts across timeframes, from -0.13 (1 year) to 0.05 (all time), reflecting how their relationship changes across market environments.

Return for Risk

KBWB vs. PCLO — Risk / Return Rank

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

KBWB

KBWB Risk / Return Rank: 58
KBWB Sharpe Ratio Rank: 66
KBWB Sortino Ratio Rank: 59
KBWB Omega Ratio Rank: 61
KBWB Calmar Ratio Rank: 53
KBWB Martin Ratio Rank: 49

PCLO

PCLO Risk / Return Rank: 99
PCLO Sharpe Ratio Rank: 98
PCLO Sortino Ratio Rank: 99
PCLO Omega Ratio Rank: 99
PCLO Calmar Ratio Rank: 99
PCLO 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.

KBWB vs. PCLO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco KBW Bank ETF (KBWB) and Virtus SEIX AAA Private Credit CLO ETF (PCLO). 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.

	KBWB	PCLO	Difference
Sharpe ratio: Return per unit of total volatility	2.08	5.81	-3.73
Sortino ratio: Return per unit of downside risk	2.69	10.10	-7.40
Omega ratio: Gain probability vs. loss probability	1.36	2.70	-1.34
Calmar ratio: Return relative to maximum drawdown	2.57	19.95	-17.38
Martin ratio: Return relative to average drawdown	8.09	117.16	-109.07

KBWB vs. PCLO - Sharpe Ratio Comparison

The current KBWB Sharpe Ratio is 2.08, which is lower than the PCLO Sharpe Ratio of 5.81. The chart below compares the historical Sharpe Ratios of KBWB and PCLO, 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

KBWB vs. PCLO - Drawdown Comparison

The maximum KBWB drawdown since its inception was -50.27%, which is greater than PCLO's maximum drawdown of -0.76%. Use the drawdown chart below to compare losses from any high point for KBWB and PCLO.

Drawdown Indicators

	KBWB	PCLO	Difference
Max Drawdown Largest peak-to-trough decline	-50.27%	-0.76%	-49.51%
Max Drawdown (1Y) Largest decline over 1 year	-16.38%	-0.26%	-16.12%
Max Drawdown (3Y) Largest decline over 3 years	-25.43%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-49.31%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-50.27%	—	—
Current Drawdown Current decline from peak	0.00%	-0.02%	+0.02%
Average Drawdown Average peak-to-trough decline	-11.70%	-0.03%	-11.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.20%	0.04%	+5.16%

Volatility

KBWB vs. PCLO - Volatility Comparison

Invesco KBW Bank ETF (KBWB) has a higher volatility of 5.65% compared to Virtus SEIX AAA Private Credit CLO ETF (PCLO) at 0.26%. This indicates that KBWB's price experiences larger fluctuations and is considered to be riskier than PCLO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KBWB	PCLO	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.65%	0.26%	+5.39%
Volatility (6M) Calculated over the trailing 6-month period	15.88%	0.70%	+15.18%
Volatility (1Y) Calculated over the trailing 1-year period	20.30%	0.90%	+19.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.55%	1.14%	+25.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.21%	1.14%	+28.07%

KBWB vs. PCLO - Expense Ratio Comparison

KBWB has a 0.35% expense ratio, which is higher than PCLO's 0.29% expense ratio.

Dividends

KBWB vs. PCLO - Dividend Comparison

KBWB's dividend yield for the trailing twelve months is around 2.43%, less than PCLO's 5.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KBWB Invesco KBW Bank ETF	2.43%	2.04%	2.46%	3.20%	3.05%	2.13%	2.62%	2.38%	2.54%	1.35%	1.53%	1.53%
PCLO Virtus SEIX AAA Private Credit CLO ETF	5.24%	5.53%	0.44%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both KBWB and PCLO in my portfolio?

KBWB and PCLO have a correlation of -0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KBWB or PCLO?

KBWB has higher volatility (5.65%) compared to PCLO (0.26%). In terms of maximum drawdown, KBWB dropped -50.27% vs PCLO's -0.76%.

Which ETF is better, KBWB or PCLO?

On 1-year performance, KBWB leads with 41.92% vs 5.22% for PCLO. On fees, PCLO is cheaper at 0.29% per year. On volatility, PCLO has been the lower-risk option at 0.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KBWB or PCLO?

Over the 1-year period, KBWB has performed better with a 41.92% return vs 5.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KBWB or PCLO?

PCLO is cheaper with a 0.29% expense ratio, compared with 0.35% for KBWB.

Which ETF pays a higher dividend yield, KBWB or PCLO?

PCLO has the higher dividend yield at 5.24%, compared with 2.43% for KBWB.

What is the main difference between KBWB and PCLO?

KBWB is categorized as Financials Equities, while PCLO is CLO. They also come from different issuers: Invesco and Virtus. Their fees differ too: 0.35% for KBWB and 0.29% for PCLO.

Which has better risk-adjusted returns?

PCLO currently has the higher Sharpe Ratio (5.81 vs 2.08), 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.