NCLO vs. FAAA

Last updated Jun 4, 2026

NCLO (Nuveen AA-BBB CLO ETF) and FAAA (Fidelity AAA CLO ETF) are both CLO funds. NCLO is passively managed, while FAAA is actively managed. At a correlation of -0.03, they often move in opposite directions. NCLO charges 0.26%/yr vs 0.20%/yr for FAAA.

Performance

NCLO vs. FAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Nuveen AA-BBB CLO ETF (NCLO) and Fidelity AAA CLO ETF (FAAA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

NCLO

• 1D: -0.16%
• 1M: 0.61%
• YTD: 1.96%
• 6M: 2.57%
• 1Y: 5.90%
• 3Y*: —
• 5Y*: —
• 10Y*: —

FAAA

• 1D: 0.02%
• 1M: 0.49%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

NCLO vs. FAAA - Yearly Performance Comparison

	2026 (YTD)
NCLO Nuveen AA-BBB CLO ETF	1.57%
FAAA Fidelity AAA CLO ETF	1.50%

Correlation

The correlation between NCLO and FAAA is -0.03, 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 (All Time) Calculated using the full available price history since Feb 13, 2026	-0.03

Return for Risk

NCLO vs. FAAA — Risk / Return Rank

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

NCLO

NCLO Risk / Return Rank: 54
NCLO Sharpe Ratio Rank: 46
NCLO Sortino Ratio Rank: 41
NCLO Omega Ratio Rank: 77
NCLO Calmar Ratio Rank: 39
NCLO Martin Ratio Rank: 69

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.

NCLO vs. FAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Nuveen AA-BBB CLO ETF (NCLO) and Fidelity AAA CLO ETF (FAAA). 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.

	NCLO	FAAA	Difference
Sharpe ratio Return per unit of total volatility	1.63	—	—
Sortino ratio Return per unit of downside risk	2.08	—	—
Omega ratio Gain probability vs. loss probability	1.46	—	—
Calmar ratio Return relative to maximum drawdown	1.94	—	—
Martin ratio Return relative to average drawdown	12.85	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	NCLO	FAAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.63	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.59	5.41	-3.82

Drawdowns

NCLO vs. FAAA - Drawdown Comparison

The maximum NCLO drawdown since its inception was -3.05%, which is greater than FAAA's maximum drawdown of -0.55%. Use the drawdown chart below to compare losses from any high point for NCLO and FAAA.

Drawdown Indicators

	NCLO	FAAA	Difference
Max Drawdown Largest peak-to-trough decline	-3.05%	-0.55%	-2.50%
Max Drawdown (1Y) Largest decline over 1 year	-3.05%	—	—
Current Drawdown Current decline from peak	-0.35%	0.00%	-0.35%
Average Drawdown Average peak-to-trough decline	-0.20%	-0.07%	-0.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.46%	—	—

Volatility

Volatility by Period

	NCLO	FAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.14%	—	—
Volatility (6M) Calculated over the trailing 6-month period	3.46%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	3.64%	0.94%	+2.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.72%	0.94%	+2.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.72%	0.94%	+2.78%

NCLO vs. FAAA - Expense Ratio Comparison

NCLO has a 0.26% expense ratio, which is higher than FAAA's 0.20% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

NCLO vs. FAAA - Dividend Comparison

NCLO's dividend yield for the trailing twelve months is around 5.78%, more than FAAA's 1.32% yield.

Position	TTM	2025	2024
FAAA Fidelity AAA CLO ETF	1.32%	0.00%	0.00%
NCLO Nuveen AA-BBB CLO ETF	5.78%	6.09%	0.35%

Frequently Asked Questions

Can I hold both NCLO and FAAA in my portfolio?

NCLO and FAAA have a correlation of -0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, NCLO or FAAA?

On fees, FAAA is cheaper at 0.20% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, NCLO or FAAA?

FAAA is cheaper with a 0.20% expense ratio, compared with 0.26% for NCLO.

Which ETF pays a higher dividend yield, NCLO or FAAA?

NCLO has the higher dividend yield at 5.78%, compared with 1.32% for FAAA.

What is the main difference between NCLO and FAAA?

They also come from different issuers: Nuveen and Fidelity. Their fees differ too: 0.26% for NCLO and 0.20% for FAAA.