NCLO vs. FBDC

Last updated Jun 4, 2026

NCLO (Nuveen AA-BBB CLO ETF) and FBDC (FT Confluence BDC & Specialty Finance Income ETF) are both exchange-traded funds - NCLO is a CLO fund tracking the JP Morgan CLO A Index, while FBDC is a Financials Equities fund actively managed by First Trust. NCLO is passively managed, while FBDC is actively managed. At a 0.06 correlation, their price movements are largely independent. NCLO charges 0.26%/yr vs 1.35%/yr for FBDC.

Performance

NCLO vs. FBDC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Nuveen AA-BBB CLO ETF (NCLO) and FT Confluence BDC & Specialty Finance Income ETF (FBDC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NCLO achieves a 1.96% return, which is significantly higher than FBDC's -9.51% return.

NCLO

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

FBDC

• 1D: -2.98%
• 1M: -7.81%
• YTD: -9.51%
• 6M: -10.31%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

NCLO vs. FBDC - Yearly Performance Comparison

	2026 (YTD)	2025
NCLO Nuveen AA-BBB CLO ETF	1.96%	3.37%
FBDC FT Confluence BDC & Specialty Finance Income ETF	-9.51%	-2.43%

Correlation

The correlation between NCLO and FBDC is 0.06, 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 Jul 1, 2025	0.06

Return for Risk

NCLO vs. FBDC — 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. FBDC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Nuveen AA-BBB CLO ETF (NCLO) and FT Confluence BDC & Specialty Finance Income ETF (FBDC). 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	FBDC	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	FBDC	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	-0.70	+2.29

Drawdowns

NCLO vs. FBDC - Drawdown Comparison

The maximum NCLO drawdown since its inception was -3.05%, smaller than the maximum FBDC drawdown of -20.60%. Use the drawdown chart below to compare losses from any high point for NCLO and FBDC.

Drawdown Indicators

	NCLO	FBDC	Difference
Max Drawdown Largest peak-to-trough decline	-3.05%	-20.60%	+17.55%
Max Drawdown (1Y) Largest decline over 1 year	-3.05%	—	—
Current Drawdown Current decline from peak	-0.35%	-17.24%	+16.89%
Average Drawdown Average peak-to-trough decline	-0.20%	-10.14%	+9.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.46%	—	—

Volatility

Volatility by Period

	NCLO	FBDC	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%	18.06%	-14.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.72%	18.06%	-14.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.72%	18.06%	-14.34%

NCLO vs. FBDC - Expense Ratio Comparison

NCLO has a 0.26% expense ratio, which is lower than FBDC's 1.35% expense ratio.

Dividends

NCLO vs. FBDC - Dividend Comparison

NCLO's dividend yield for the trailing twelve months is around 5.78%, less than FBDC's 11.52% yield.

Position	TTM	2025	2024
FBDC FT Confluence BDC & Specialty Finance Income ETF	11.52%	5.41%	0.00%
NCLO Nuveen AA-BBB CLO ETF	5.78%	6.09%	0.35%

Frequently Asked Questions

Can I hold both NCLO and FBDC in my portfolio?

NCLO and FBDC have a correlation of 0.06, 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 FBDC?

On fees, NCLO is cheaper at 0.26% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, NCLO or FBDC?

NCLO is cheaper with a 0.26% expense ratio, compared with 1.35% for FBDC.

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

FBDC has the higher dividend yield at 11.52%, compared with 5.78% for NCLO.

What is the main difference between NCLO and FBDC?

NCLO is categorized as CLO, while FBDC is Financials Equities. They also come from different issuers: Nuveen and First Trust. Their fees differ too: 0.26% for NCLO and 1.35% for FBDC.