NCLO vs. NPFI

Last updated Jun 4, 2026

NCLO (Nuveen AA-BBB CLO ETF) and NPFI (Nuveen Preferred And Income ETF) are both exchange-traded funds - NCLO is a CLO fund tracking the JP Morgan CLO A Index, while NPFI is a Preferred Stock/Convertible Bonds fund actively managed by Nuveen. NCLO is passively managed, while NPFI is actively managed. Over the past year, NCLO returned 5.90% vs 7.90% for NPFI. At a 0.14 correlation, their price movements are largely independent. NCLO charges 0.26%/yr vs 0.55%/yr for NPFI.

Performance

NCLO vs. NPFI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Nuveen AA-BBB CLO ETF (NCLO) and Nuveen Preferred And Income ETF (NPFI). 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 NPFI's 1.62% return.

NCLO

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

NPFI

• 1D: -0.11%
• 1M: 0.76%
• YTD: 1.62%
• 6M: 2.06%
• 1Y: 7.90%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

NCLO vs. NPFI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
NCLO Nuveen AA-BBB CLO ETF	1.96%	6.28%	0.35%
NPFI Nuveen Preferred And Income ETF	1.62%	9.21%	-0.41%

Correlation

The correlation between NCLO and NPFI is 0.09, 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	0.09
Correlation (All Time) Calculated using the full available price history since Dec 12, 2024	0.14

Return for Risk

NCLO vs. NPFI — 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

NPFI

NPFI Risk / Return Rank: 76
NPFI Sharpe Ratio Rank: 83
NPFI Sortino Ratio Rank: 89
NPFI Omega Ratio Rank: 92
NPFI Calmar Ratio Rank: 50
NPFI Martin Ratio Rank: 65

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. NPFI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Nuveen AA-BBB CLO ETF (NCLO) and Nuveen Preferred And Income ETF (NPFI). 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	NPFI	Difference
Sharpe ratio: Return per unit of total volatility	1.63	2.72	-1.09
Sortino ratio: Return per unit of downside risk	2.08	4.18	-2.10
Omega ratio: Gain probability vs. loss probability	1.46	1.64	-0.18
Calmar ratio: Return relative to maximum drawdown	1.94	2.49	-0.55
Martin ratio: Return relative to average drawdown	12.85	12.02	+0.82
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NCLO vs. NPFI - Sharpe Ratio Comparison

The current NCLO Sharpe Ratio is 1.63, which is lower than the NPFI Sharpe Ratio of 2.72. The chart below compares the historical Sharpe Ratios of NCLO and NPFI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	NCLO	NPFI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.63	2.72	-1.09
Sharpe Ratio (All Time) Calculated using the full available price history	1.59	2.65	-1.06

Drawdowns

NCLO vs. NPFI - Drawdown Comparison

The maximum NCLO drawdown since its inception was -3.05%, roughly equal to the maximum NPFI drawdown of -3.18%. Use the drawdown chart below to compare losses from any high point for NCLO and NPFI.

Drawdown Indicators

	NCLO	NPFI	Difference
Max Drawdown Largest peak-to-trough decline	-3.05%	-3.18%	+0.13%
Max Drawdown (1Y) Largest decline over 1 year	-3.05%	-3.18%	+0.13%
Current Drawdown Current decline from peak	-0.35%	-0.11%	-0.24%
Average Drawdown Average peak-to-trough decline	-0.20%	-0.34%	+0.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.46%	0.66%	-0.20%

Volatility

NCLO vs. NPFI - Volatility Comparison

Nuveen AA-BBB CLO ETF (NCLO) has a higher volatility of 1.14% compared to Nuveen Preferred And Income ETF (NPFI) at 0.83%. This indicates that NCLO's price experiences larger fluctuations and is considered to be riskier than NPFI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NCLO	NPFI	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.14%	0.83%	+0.31%
Volatility (6M) Calculated over the trailing 6-month period	3.46%	2.53%	+0.93%
Volatility (1Y) Calculated over the trailing 1-year period	3.64%	2.91%	+0.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.72%	2.95%	+0.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.72%	2.95%	+0.77%

NCLO vs. NPFI - Expense Ratio Comparison

NCLO has a 0.26% expense ratio, which is lower than NPFI's 0.55% expense ratio.

Dividends

NCLO vs. NPFI - Dividend Comparison

NCLO's dividend yield for the trailing twelve months is around 5.78%, less than NPFI's 6.41% yield.

Position	TTM	2025	2024
NCLO Nuveen AA-BBB CLO ETF	5.78%	6.09%	0.35%
NPFI Nuveen Preferred And Income ETF	6.41%	6.33%	5.10%

Frequently Asked Questions

Can I hold both NCLO and NPFI in my portfolio?

NCLO and NPFI have a correlation of 0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NCLO or NPFI?

NCLO has higher volatility (1.14%) compared to NPFI (0.83%). In terms of maximum drawdown, NCLO dropped -3.05% vs NPFI's -3.18%.

Which ETF is better, NCLO or NPFI?

On 1-year performance, NPFI leads with 7.90% vs 5.90% for NCLO. On fees, NCLO is cheaper at 0.26% per year. On volatility, NPFI has been the lower-risk option at 0.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, NCLO or NPFI?

Over the 1-year period, NPFI has performed better with a 7.90% return vs 5.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, NCLO or NPFI?

NCLO is cheaper with a 0.26% expense ratio, compared with 0.55% for NPFI.

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

NPFI has the higher dividend yield at 6.41%, compared with 5.78% for NCLO.

What is the main difference between NCLO and NPFI?

NCLO is categorized as CLO, while NPFI is Preferred Stock/Convertible Bonds. Their fees differ too: 0.26% for NCLO and 0.55% for NPFI.

Which has better risk-adjusted returns?

NPFI currently has the higher Sharpe Ratio (2.72 vs 1.63), 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.