CLOC vs YCLO

CLOCBAAM Crescent CLO ETF

YCLOCFranklin BSP 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.

YCLO Most CLO ETFs park in AAA. YCLO roams the whole investment-grade CLO stack, US and European deals alike, run by Franklin's Benefit Street Partners credit desk with capital preservation as the stated first job.

Stated mandate

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

YCLO The Fund seeks capital preservation and current income.

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.

• YCLO Active mandate across investment-grade CLO tranches in both US and European deals, hunting relative value instead of sitting only at the top of the stack.businesswire.comfranklintempleton.com
• Stated job is capital preservation and current income, and CLO tranches pay floating-rate coupons, so the income stream resets with short-term rates.businesswire.com
• The desk is not new to this: BSP is Franklin's alternative credit arm and its structured credit platform dates to 2009.businesswire.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.

• YCLO Costs 0.35% a year, above the CLO ETF median and above the big AAA-only names like JAAA, CLOA and PAAA. That is the price of the wider mandate.
• Reaching below AAA adds credit and downgrade risk; ratings on CLO tranches can be cut, and pricing can gap in stressed markets.businesswire.com
• Launched in 2026, thinly traded, and a concentrated book of a few dozen tranches, so wider spreads come with the territory. Income arrives quarterly.

Full CLOC profile⁠

Full YCLO profile⁠