FAAA vs JAAA

FAAAAFIDELITY AAA CLO ETF

JAAAAJanus Henderson AAA CLO ETF

In short

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.

JAAA The AAA CLO trade in an ETF wrapper, running since 2020: floating-rate exposure to the senior slice of the corporate loan stack, aiming for capital preservation and income, at a fee below the group norm.

Stated mandate

FAAA The fund seeks to generate income by investing at least 80% of its assets in floating-rate collateralized loan obligations rated AAA.

JAAA The fund seeks capital preservation and current income through floating-rate exposure to high-quality AAA-rated collateralized loan obligations.

Why people hold it

• 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.

• JAAA Costs 0.20% a year, under the typical fee in its CLO peer group, and the newer AAA CLO rivals (CLOA, FAAA, ACLO) cluster at that same number rather than undercutting it.
• Very actively traded and a multi-billion-dollar fund, which is real market depth for an asset class that mostly lives in institutional hands.
• AAA CLO tranches pay floating coupons, so income resets as short-term rates move instead of being locked in. Distributions land monthly.
• Spread across roughly 400 positions at the top AAA rung of the loan capital stack, so no single deal carries the fund. One of the stronger builds in its peer group.

Worth knowing

• 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

• JAAA Actively managed with no declared index behind it, so which deals and tranches the fund owns comes down to the manager, not a published rulebook.
• Floating rate cuts both ways: when short-term rates fall, the income these deals throw off falls with them.
• AAA is the senior rung, but it is still corporate loan credit, not Treasuries. The fund's stated aim is capital preservation, not a guarantee of it.

Full FAAA profile⁠

Full JAAA profile⁠