BCLO vs CLOC

BCLODiShares BBB-B CLO Active ETF

CLOCBAAM Crescent CLO ETF

In short

BCLO The CLO ETF aisle is stacked with AAA-only funds. BCLO goes the other way: an active book of BBB+ to B- CLO tranches, reaching for current income further down the ratings ladder, with cash paid out monthly.

CLOC A 2025 arrival in the CLO aisle that undercuts the category on fee: 0.18% a year, below the typical CLO fund and below the giants it competes with. Its mandate leads with capital preservation, then low correlation and current income.

Stated mandate

BCLO The Fund seeks capital preservation and current income by investing principally in collateralized loan obligations rated from BBB+ to B-.

CLOC The Fund seeks capital preservation, low correlation with traditional asset classes, and current income.

Why people hold it

• BCLO Most CLO ETFs stop at AAA. BCLO's mandate is the BBB+ to B- band, a genuinely different slice of the same corporate loan pools.
• Actively managed and concentrated in roughly 50 positions, so a manager is picking deals and tranches rather than buying a rating bucket wholesale.
• Stated goals are capital preservation and current income, and the income arrives monthly.
• Sits inside the iShares CLO lineup alongside the AAA fund CLOA, so the mezzanine mandate extends an existing platform rather than starting from scratch.

• CLOC Cheapest seat in the CLO aisle: 0.18% a year against a 0.25% category median, and a step under the biggest AAA CLO funds (JAAA, CLOA, PAAA, FAAA, ACLO at 0.19%-0.20%).
• The mandate is unusually explicit: capital preservation first, low correlation with traditional asset classes second, current income third.
• Young, but it already stands in the upper half of a crowded 27-fund CLO group.

Worth knowing

• BCLO At 0.45% the fee runs well above the AAA CLO crowd, where CLOA, JAAA and PAAA sit near 0.20%. Credit work below AAA costs more to run.
• The mandate reaches down to B-, below investment grade, so this is a credit position with real default sensitivity, not an AAA cash-parking tool.
• Launched in 2025 and thinly traded, so the track record is short and bid-ask spreads can be wider than the established AAA CLO funds.

• CLOC Thinly traded next to the multi-billion-dollar CLO names, so spreads can be wider and larger orders take patience.
• Launched in October 2025, so the history is short and there is not yet a full credit cycle to judge it by.
• Distributions have come on an irregular schedule rather than a fixed monthly rhythm, so income timing is less predictable.

Full BCLO profile⁠

Full CLOC profile⁠