CLOA vs FCLO

CLOAAiShares AAA CLO Active ETF

FCLOCFidelity 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.

FCLO Most CLO ETFs hug the AAA tranche. FCLO goes down the stack, putting the majority of assets in CLOs rated BBB+ to B-, the mezzanine and junior slices, with its fee waived to zero through January 31, 2027 (0.45% gross after).

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.

FCLO The fund seeks to generate income and normally invests at least 80% of its assets in collateralized loan obligations (CLOs).

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.

• FCLO Rare down-the-stack build: most assets sit in CLOs rated BBB+ to B-, the mezzanine and junior tranches, while category leaders CLOA, JAAA and PAAA stay in AAA.fidelity.com
• Fee waived to zero through January 31, 2027, against 0.20% at CLOA and JAAA and 0.19% at PAAA, and below the category median.
• Active mandate with room to roam: at least 80% in CLOs, plus higher-rated tranches, middle-market (private credit) CLOs and other structured products.fidelity.com

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.

• FCLO Mezzanine and junior tranches sit behind AAA in the waterfall, so loan losses reach them first. Fidelity's own materials flag more volatility and risk with the higher income.fidelity.com
• When the waiver ends on January 31, 2027, the 0.45% gross fee applies, above CLOA and JAAA at 0.20% and PAAA at 0.19%.
• A 2026 launch still building scale and trading volume, so spreads can run wider than at the category's long-tenured AAA funds.

Full CLOA profile⁠

Full FCLO profile⁠