FCLO vs JAAA

FCLOCFidelity CLO ETF

JAAAAJanus Henderson AAA CLO ETF

In short

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).

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

FCLO The fund seeks to generate income and normally invests at least 80% of its assets in collateralized loan obligations (CLOs).

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

• 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

• 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

• 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.

• 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 FCLO profile⁠

Full JAAA profile⁠