CLOA vs FAAA

CLOAAiShares AAA CLO Active ETF

FAAAAFIDELITY AAA CLO ETF

In short

CLOA BlackRock's play in AAA CLOs: active credit picking measured against J.P. Morgan's CLOIE AAA index, 0.20% a year, spread over roughly 400 positions. A billion-dollar-plus book built since its 2023 launch.

FAAA Fidelity's CLO entrant costs nothing to own right now: the 0.20% management fee is waived in full through January 31, 2027. Underneath sits an actively run book of AAA-rated CLO tranches with floating-rate coupons.

Stated mandate

CLOA The fund seeks exposure to U.S. dollar-denominated AAA-rated collateralized loan obligations, using active credit selection to pursue income and capital preservation with potentially low volatility.

FAAA The fund seeks to generate income by investing at least 80% of its assets in floating-rate collateralized loan obligations rated AAA.

Why people hold it

• CLOA Charges 0.20% a year, below the 0.25% typical for CLO funds and level with what most of the category's biggest names (JAAA, FAAA, ACLO) charge.
• Roughly 400 separate CLO positions, one of the deepest books in its peer group, so no single deal carries the fund.
• Actively run: the team selects deals and CLO managers instead of buying whatever a benchmark holds. The CLOIE AAA index is the yardstick, not the rulebook.
• Income arrives monthly, and it sits among the easier funds in its cohort to get in and out of.

• FAAA Fee waived in full: 0.00% net on a 0.20% gross expense ratio through January 31, 2027. Peer AAA CLO funds CLOA and JAAA charge 0.20% and PAAA 0.19%, with no waiver.fidelity.com
• At least 80% of assets go into AAA-rated CLO tranches, the senior slice of the structure, and floating-rate coupons keep interest-rate sensitivity short.sec.govfidelity.com
• Actively managed by Fidelity's fixed income group, and per the prospectus the adviser pays the fund's other expenses with limited exceptions, so the headline fee is the fee.sec.govfidelity.com
• Cost and portfolio construction put it among the stronger builds in a crowded AAA CLO field of more than 30 US funds.

Worth knowing

• CLOA Active means manager-dependent. There is no index to fall back on, so outcomes hinge on which deals the desk picks.
• The mandate pursues income and capital preservation with potentially low volatility. That is the aim, not a floor; CLO prices still move.
• Trading since January 2023, so its record is short next to long-running bond funds and covers a narrow slice of credit history.

• FAAA The zero fee is contractual, not permanent. It runs through January 31, 2027, after which the 0.20% gross rate can apply.fidelity.com
• Launched in 2026, so the track record is short and the fund is smaller and less heavily traded than the category's longest-standing names.
• AAA is the senior CLO tranche, not a loss shield: prices can move in loan-market stress, and income floats with short-term rates on an irregular payout schedule.sec.gov

Full CLOA profile⁠

Full FAAA profile⁠