BCLO ETF: What Is It? A Complete Guide to Returns, Fees, Holdings, and Alternative ETFs
The iShares BBB-B CLO Active ETF (BCLO) is a bond ETF focused on the BBB and lower tranches of CLOs. Its higher yield relative to top-rated tranches comes with rising credit risk, which is the key to its outlook, so comparing it with related products such as CLOA and JBBB is important.
SubscribeWhat Is the iShares BBB-B CLO Active ETF?
This ETF invests mainly in the mid-grade BBB and lower tranches of CLOs, which bundle bank loans and divide them into tranches by credit rating. Rather than simply tracking an index, it is run actively, with the management team selecting individual tranches.
It suits bond investors who want higher interest income than top-rated CLO ETFs offer and can tolerate the greater credit risk that comes with it.
It is an actively managed ETF run by iShares.
How Does the iShares BBB-B CLO Active ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | Actively managed relative to a benchmark |
| Management Style | Active (tranche selection) |
| Rebalancing Frequency | At the discretion of the management team |
| Distribution Frequency | Monthly |
| Issuer | iShares |
| Expense Ratio | 0.45% |
The fund selects tranches mainly from the BBB and lower segments among the various credit rating tiers within the CLO structure. These tranches offer higher interest income than top-rated tranches, but they absorb losses from defaults in the underlying loans first, so the management team's credit analysis largely determines performance.
- Pursues high interest income by concentrating on mid-grade tranches
- Actively managed credit selection
iShares BBB-B CLO Active ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $113.6M, and the expense ratio (Expense Ratio) is 0.45% per year.
Compared with similar CLO ETFs that focus on top-rated tranches, it offers higher interest income, but credit risk rises along with it.
iShares BBB-B CLO Active ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeCLO bonds have a floating-rate structure, so interest income varies with the short-term rate environment, and mid-grade tranches tend to react more sensitively to changes in credit spreads.
In a high-rate environment, demand for floating-rate assets continues, and investor interest is broadening across CLO ETFs as a whole. However, flows into mid-grade tranches react sensitively when concerns about an economic slowdown grow.
iShares BBB-B CLO Active ETF Pros and Cons
Its strength is a higher dividend yield than top-rated tranches, but its main drawback is the credit risk of a mid-grade structure that bears underlying loan defaults first.
💪 Key Strengths
⚠️ Points to Watch
iShares BBB-B CLO Active ETF Alternative ETFs and Related Products
In the same CLO category, the three products shown in the table, CLOA, JAAA, and PAAA, all focus on top-rated tranches, offering greater stability but lower interest income. A direct comparison for those targeting mid-grade tranches is JBBB, which invests in the B to BBB range, and for a more stable alternative, CLOA, a top-rated CLO ETF from the same issuer, is also worth considering.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 JAAA | Janus Henderson AAA CLO ETF | $50.44 | -0.4% | $32.5B | 0.20% | 5.26% | -0.5% |
 PAAA | PGIM AAA CLO ETF | $51.30 | -0.3% | $15.1B | 0.19% | 5.06% | -0.3% |
 FSEC | Fidelity Investment Grade Securitized ETF | $42.76 | +0.4% | $4.5B | 0.36% | 4.56% | -3.5% |
 CLOA | iShares AAA CLO Active ETF | $51.97 | +0.1% | $2.8B | 0.20% | 4.77% | +0.2% |
 CLOI | VanEck CLO ETF | $52.98 | +0.0% | $1.8B | 0.36% | 5.08% | -0.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 ESGD | iShares Trust iShares ESG Aware MSCI EAFE ETF | 0.03% | $102.72 | -0.8% | $0.0M | - | 3.33% |
| TKO | TKO Group Holdings Inc | 0.01% | $180.68 | +1.1% | $34.2B | 62.5 | 0.86% |
 APG | APi Group Corp | 0.01% | $44.34 | -1.5% | $19.3B | - | - |
 NRG | NRG Energy Inc | 0.01% | $96.06 | -1.5% | $20.2B | 25.4 | 2.01% |
| TDG | Transdigm Group Incorporated | 0.01% | $1146.81 | -2.5% | $63.4B | 34.8 | 0.02% |
 TSLX | Sixth Street Specialty Lending Inc | 0.01% | $17.63 | +0.1% | $1.7B | 18.7 | 9.81% |
 GFL | GFL Environmental Inc | 0.00% | $45.21 | +0.4% | $19.7B | - | 0.13% |
 Q | Qnity Electronics Inc | 0.00% | $116.67 | -4.9% | $24.4B | 41.8 | 0.22% |
 CNM | Core & Main Inc | 0.00% | $44.25 | +0.3% | $8.4B | 18.3 | - |
iShares BBB-B CLO Active ETF Investor Checkpoints
These are the points to review before investing in BCLO. It is wise to check in advance the credit structure and risk tiers that lie behind the high dividend. In particular, it helps to look at the loss-absorption order of the underlying loans, the floating-rate characteristics, and liquidity conditions in the CLO market.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Dividend Income | Confirm the high dividend level of the mid-grade tranches | Monthly dividends paid |
| 📉 Credit Risk | Confirm the loss-absorption order for underlying loan defaults | Mid-grade tranches |
| 📊 Interest Rate Sensitivity | Confirm how interest income changes under the floating-rate structure | Linked to the rate environment |
| 💧 Liquidity | Confirm trading conditions in the CLO market | Needs verification |
Mid-grade CLO tranches are directly exposed to an economic slowdown and rising loan delinquencies. In periods of market stress, price swings and liquidity constraints can appear at the same time, so caution is warranted.
This is an actively managed bond ETF suited to investors who want a high dividend and understand the credit risk of mid-grade CLO tranches. If stability is the priority, a top-rated CLO ETF may be the better fit, while those seeking more income may want to compare this ETF alongside it before choosing.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 2, 2026.
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