What Is the ICLO ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The Invesco AAA Collateralized Loan Obligation ETF (ICLO) is a floating-rate fund that invests in top-rated structured debt. Its monthly dividends, senior-tranche structure, and differences in assets and management versus JAAA, PAAA, and BKLN are the key selection criteria.
SubscribeWhat Is the Invesco AAA Collateralized Loan Obligation ETF?
This floating-rate bond ETF invests mainly in the senior tranches carrying the highest credit ratings among structured securities built by pooling many corporate loans. Because of its floating-rate structure, it tends to be relatively well positioned when interest rates rise.
It suits investors who want floating-rate income from highly rated structured debt and who understand the risks specific to structured products.
It is an actively managed ETF run by Invesco.
How Does the Invesco AAA Collateralized Loan Obligation ETF Invest?
| Item | Details |
|---|---|
| Investment Target | Top-rated structured debt |
| Management Style | Active (credit selection) |
| Interest Rate Structure | Floating rate (protection against rising rates) |
| Dividend Frequency | Monthly dividends |
| Total Expense Ratio | 0.19% |
Among structured securities built by pooling many corporate loans, the fund concentrates on the senior tranches with the highest credit ratings, not the subordinated tranches that absorb losses first. Thanks to the floating-rate structure, distribution income grows when rates rise, and active credit selection manages the risks of structured debt while the fund pursues stable interest income.
- Concentration in top-rated senior tranches
- Floating-rate structure that guards against rising rates
Invesco AAA Collateralized Loan Obligation ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $613.4M, and the total expense ratio is 0.19% per year.
Compared with similar top-rated structured debt ETFs and senior loan ETFs, management style and credit selection are the main points of comparison.
Invesco AAA Collateralized Loan Obligation ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeTop-rated structured debt is driven by the level of interest rates and the credit environment. Because of the floating-rate structure, distribution income rises when rates go up, and price resilience tends to be relatively good. With a focus on senior tranches, credit risk is lower than for subordinated tranches.
Fund flows into structured debt products split depending on the rate outlook and risk appetite, and money sometimes moves into floating-rate assets when expectations of higher rates build. It is also worth watching how performance shifts with the credit environment and liquidity in the structured market.
Invesco AAA Collateralized Loan Obligation ETF Strengths and Weaknesses
Its strength is top-rated floating-rate income, while the complexity unique to structured products, liquidity, and credit environment risk are the considerations.
💪 Key Strengths
⚠️ Points to Watch
Invesco AAA Collateralized Loan Obligation ETF Alternative ETFs and Related Products
Direct substitutes offering similar top-rated structured debt exposure include JAAA and PAAA. For floating-rate exposure from other assets, products such as BKLN, which holds senior loans, are also worth comparing. Investors who prefer floating-rate corporate bonds can also consider products such as FLOT. This ETF's differentiator is its floating-rate management focused on top-rated senior tranches.
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| NVDA | NVIDIA Corp | 0.07% | $204.64 | -4.2% | $4.93T | 25.9 | 0.38% |
| MSFT | Microsoft Corp | 0.06% | $521.91 | -1.6% | $3.88T | 27.3 | 0.74% |
| AAPL | Apple Inc | 0.05% | $344.63 | -1.2% | $5.03T | 39.5 | 0.32% |
| AMZN | Amazon.com Inc | 0.04% | $240.35 | -1.4% | $2.59T | 19.4 | - |
| TSLA | Tesla Inc | 0.04% | $399.81 | -0.9% | $1.58T | 439.8 | - |
| GOOGL | Alphabet Inc | 0.06% | $279.84 | -1.4% | $3.41T | 14.6 | 0.31% |
| AVGO | Broadcom Inc | 0.03% | $326.08 | -5.5% | $1.56T | 41.6 | 0.8% |
 GBDC | Golub Capital BDC Inc | 0.02% | $12.72 | -0.5% | $3.3B | 19.6 | 10.85% |
| BLK | Blackrock Inc | 0.02% | $1147.54 | -2.4% | $186.4B | 26.8 | 1.99% |
Invesco AAA Collateralized Loan Obligation ETF Investor Checkpoints
Here are the points to review before investing in ICLO. Top-rated floating-rate income is attractive, but structural complexity, liquidity, and the credit environment should be checked in advance. It is also a good idea to compare it with similar structured debt and senior loan products.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 🏅 Credit Rating | Review the top rating and the tranche structure | Top rating |
| 💵 Distribution Income | Review the floating-rate distribution yield and its sustainability | On the high side |
| 🧩 Structural Understanding | Understand the structure and risks of structured securities | Prior understanding needed |
| 💧 Liquidity | Review trading conditions for structured debt | Needs confirmation |
A deteriorating credit environment for the underlying corporate loans and tightening liquidity in the structured market are the main short-term variables, and the complex structure can make the fund hard to understand and evaluate. Even with a top rating, prices can move during periods of market stress.
It is a suitable candidate for investors seeking floating-rate income from highly rated structured debt. To compare similar top-rated products, look at JAAA and PAAA, and if you want active management of floating-rate structured debt, it is advisable to compare this product alongside them 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 June 10, 2026.
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