CLOC vs FAAA

CLOCBAAM Crescent CLO ETF

FAAAAFIDELITY AAA CLO ETF

In short

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.

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

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

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

• 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.

• 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

• 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.

• 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 CLOC profile⁠

Full FAAA profile⁠