PCLO vs. KBWB

Last updated Jun 23, 2026

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

Performance

PCLO vs. KBWB - Performance Comparison

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

Returns By Period

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

PCLO

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

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%

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

PCLO vs. KBWB - Yearly Performance Comparison

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

Correlation

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

Return for Risk

PCLO vs. KBWB — Risk / Return Rank

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

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

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

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.

PCLO vs. KBWB - Risk-Adjusted Trends Comparison

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

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

PCLO vs. KBWB - Sharpe Ratio Comparison

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

PCLO vs. KBWB - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

PCLO vs. KBWB - Volatility Comparison

The current volatility for Virtus SEIX AAA Private Credit CLO ETF (PCLO) is 0.26%, while Invesco KBW Bank ETF (KBWB) has a volatility of 5.65%. This indicates that PCLO experiences smaller price fluctuations and is considered to be less risky than KBWB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

PCLO vs. KBWB - Expense Ratio Comparison

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

Dividends

PCLO vs. KBWB - Dividend Comparison

PCLO's dividend yield for the trailing twelve months is around 5.24%, more than KBWB's 2.43% 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 PCLO and KBWB in my portfolio?

PCLO and KBWB 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, PCLO or KBWB?

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

Which ETF is better, PCLO or KBWB?

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, PCLO or KBWB?

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, PCLO or KBWB?

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

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

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

What is the main difference between PCLO and KBWB?

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

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.