PSQA vs. ICLO

Last updated Aug 5, 2026

PSQA (Palmer Square CLO Senior Debt ETF) and ICLO (Invesco AAA CLO Floating Rate Note ETF) are both CLO funds. PSQA is passively managed, while ICLO is actively managed. Over the past year, PSQA returned 5.58% vs 5.21% for ICLO. Their 0.07 correlation means their historical movements had little consistent relationship. PSQA charges 0.21%/yr vs 0.19%/yr for ICLO.

Performance

PSQA vs. ICLO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Palmer Square CLO Senior Debt ETF (PSQA) and Invesco AAA CLO Floating Rate Note ETF (ICLO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with PSQA having a 3.04% return and ICLO slightly lower at 2.91%.

PSQA

• 1D: 0.05%
• 1M: 1.03%
• 6M: 2.54%
• YTD: 3.04%
• 1Y: 5.58%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 5.67%

ICLO

• 1D: 0.02%
• 1M: 0.29%
• 6M: 2.49%
• YTD: 2.91%
• 1Y: 5.21%
• 3Y*: 6.29%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 6.71%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ICLO Invesco AAA CLO Floating Rate Note ETF	$3.44M	$3.01M	$3.03M
PSQA Palmer Square CLO Senior Debt ETF	$6.52M	$3.41M	$2.55M

PSQA vs. ICLO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PSQA Palmer Square CLO Senior Debt ETF	3.04%	5.82%	1.80%
ICLO Invesco AAA CLO Floating Rate Note ETF	2.91%	5.27%	2.03%

Correlation

The correlation between PSQA and ICLO is 0.02, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.02
Correlation (All Time) Calculated using the full available price history since Sep 12, 2024	0.07

Return for Risk

PSQA vs. ICLO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

PSQA

PSQA Risk / Return Rank: 93
PSQA Sharpe Ratio Rank: 87
PSQA Sortino Ratio Rank: 92
PSQA Omega Ratio Rank: 94
PSQA Calmar Ratio Rank: 96
PSQA Martin Ratio Rank: 95

ICLO

ICLO Risk / Return Rank: 98
ICLO Sharpe Ratio Rank: 98
ICLO Sortino Ratio Rank: 98
ICLO Omega Ratio Rank: 98
ICLO Calmar Ratio Rank: 99
ICLO Martin Ratio Rank: 99

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

PSQA vs. ICLO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Palmer Square CLO Senior Debt ETF (PSQA) and Invesco AAA CLO Floating Rate Note ETF (ICLO). 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.

	PSQA	ICLO	Difference
Sharpe ratio: Return per unit of total volatility	2.27	4.20	-1.92
Sortino ratio: Return per unit of downside risk	3.65	7.38	-3.73
Omega ratio: Gain probability vs. loss probability	1.52	2.04	-0.52
Calmar ratio: Return relative to maximum drawdown	7.18	16.73	-9.55
Martin ratio: Return relative to average drawdown	23.22	71.42	-48.19

PSQA vs. ICLO - Sharpe Ratio Comparison

The current PSQA Sharpe Ratio is 2.27, which is lower than the ICLO Sharpe Ratio of 4.20. The chart below compares the historical Sharpe Ratios of PSQA and ICLO, 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

PSQA vs. ICLO - Drawdown Comparison

The maximum PSQA drawdown since its inception was -1.25%, smaller than the maximum ICLO drawdown of -3.47%. Use the drawdown chart below to compare losses from any high point for PSQA and ICLO.

Drawdown Indicators

	PSQA	ICLO	Difference
Max Drawdown Largest peak-to-trough decline	-1.25%	-3.47%	+2.22%
Max Drawdown (1Y) Largest decline over 1 year	-0.78%	-0.31%	-0.47%
Max Drawdown (3Y) Largest decline over 3 years	—	-3.47%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.16%	-0.06%	-0.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.24%	0.07%	+0.17%

Volatility

PSQA vs. ICLO - Volatility Comparison

Palmer Square CLO Senior Debt ETF (PSQA) has a higher volatility of 0.64% compared to Invesco AAA CLO Floating Rate Note ETF (ICLO) at 0.18%. This indicates that PSQA's price experiences larger fluctuations and is considered to be riskier than ICLO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSQA	ICLO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.64%	0.18%	+0.46%
Volatility (6M) Calculated over the trailing 6-month period	2.10%	0.81%	+1.29%
Volatility (1Y) Calculated over the trailing 1-year period	2.47%	1.25%	+1.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.33%	2.38%	-0.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.33%	2.38%	-0.05%

PSQA vs. ICLO - Expense Ratio Comparison

PSQA has a 0.21% expense ratio, which is higher than ICLO's 0.19% 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

PSQA vs. ICLO - Dividend Comparison

PSQA's dividend yield for the trailing twelve months is around 4.11%, less than ICLO's 4.96% yield.

Position	TTM	2025	2024	2023
ICLO Invesco AAA CLO Floating Rate Note ETF	4.96%	5.49%	6.51%	7.01%
PSQA Palmer Square CLO Senior Debt ETF	4.11%	4.48%	1.45%	0.00%

Frequently Asked Questions

Can I hold both PSQA and ICLO in my portfolio?

PSQA and ICLO have a correlation of 0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSQA or ICLO?

PSQA has higher volatility (0.64%) compared to ICLO (0.18%). In terms of maximum drawdown, PSQA dropped -1.25% vs ICLO's -3.47%.

Which ETF is better, PSQA or ICLO?

On 1-year performance, PSQA leads with 5.58% vs 5.21% for ICLO. On fees, ICLO is cheaper at 0.19% per year. On volatility, ICLO has been the lower-risk option at 0.18%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSQA or ICLO?

Over the 1-year period, PSQA has performed better with a 5.58% return vs 5.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSQA or ICLO?

ICLO is cheaper with a 0.19% expense ratio, compared with 0.21% for PSQA.

Which ETF pays a higher dividend yield, PSQA or ICLO?

ICLO has the higher dividend yield at 4.96%, compared with 4.11% for PSQA.

What is the main difference between PSQA and ICLO?

They also come from different issuers: Palmer Square and Invesco. Their fees differ too: 0.21% for PSQA and 0.19% for ICLO.

Which has better risk-adjusted returns?

ICLO currently has the higher Sharpe Ratio (4.20 vs 2.27), 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.