CLOC vs RAAR

CLOCBAAM Crescent CLO ETF

RAARDReckoner Yield Enhanced AAA CLO Reinvesting 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.

RAAR Most AAA CLO ETFs exist to spray income at you every month. RAAR is the odd one out: an actively managed AAA CLO fund that aims to distribute just once a year, letting interest stack up inside the wrapper instead.

Stated mandate

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

RAAR The Fund is an actively-managed ETF that seeks total return by investing in AAA-rated debt tranches of collateralized loan obligations (CLOs), while aiming to limit dividend or income distributions to once per year.

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.

• RAAR The rare accumulator. It aims to limit distributions to once a year, so CLO interest builds inside the fund instead of landing in your account twelve times a year.
• Exactly what the name says: AAA-rated CLO debt tranches, the senior slice of the loan securitization stack, picked by an active manager rather than tracked off an index.
• Built around the same AAA CLO strategy as its sibling RAAA, with the payout switch turned from routine income to an annual event.

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.

• RAAR It charges 0.40% a year. The typical AAA CLO ETF sits near 0.25%, and the category's largest names (JAAA, CLOA, PAAA) run about 0.20%.
• Launched in late 2024 and still a small, thinly traded fund, so bid-ask spreads can run wider than the category's heavyweights. Limit orders matter here.
• The once-a-year cadence is a stated aim, not a promise, and by design there is no monthly cash landing in your account from this fund.

Full CLOC profile⁠

Full RAAR profile⁠