CLOC vs FCLO

CLOCBAAM Crescent CLO ETF

FCLOCFidelity 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.

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

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

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

• 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.

• 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

• 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.

• 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 CLOC profile⁠

Full FCLO profile⁠