RCLO’s concentrated portfolio vs iShares’ BCLO

Reckoner Capital’s RCLO and iShares’ BCLO are actively managed ETFs that invest in debt tranches of collateralized loan obligations rated between BBB+ and B-. The two funds target the same credit segment but use different portfolio constructions: RCLO holds 23 distinct tranches, while BCLO holds 50 tranches with an effective number of holdings of 39, according to VettaFi data. RCLO’s top 10 positions account for 50.54% of assets; BCLO’s top 10 account for 36.83%.

RCLO maintains a concentrated portfolio of 23 holdings, which allows larger individual position sizes in selected CLO managers and tranches. The fund launched on October 22, 2025, charges a 0.50% management fee, distributes income monthly, and states it will invest, under normal circumstances, at least 80% of net assets in CLO debt tranches rated between BBB+ and B- or equivalent. Its stated objective is to generate current income with a secondary objective of capital preservation.

BCLO holds 50 distinct positions and reports an effective holdings figure of 39, indicating concentration within a larger roster. The fund launched on January 29, 2025, charges a 0.45% management fee, distributes income monthly, and seeks capital preservation and current income. Its investment policy calls for investing, under normal circumstances, at least 80% of net assets plus borrowings for investment purposes in CLOs rated from BBB+ to B- or judged by the management team to be of similar quality.

Performance figures through March 31, 2026 show modest differences between net asset value (NAV) and market-price returns. For the month ending March 31, RCLO’s NAV returned 0.69%, with quarter-to-date and year-to-date NAV at -0.08% and a cumulative return since inception of 1.31%. RCLO’s market-price returns for the same periods were 0.81% (one month), -0.69% (quarter-to-date and year-to-date) and 1.09% (since inception). BCLO’s NAV returned -0.26% for the month, -0.01% quarter-to-date and year-to-date, and 1.20% since inception. BCLO’s market-price returns were 0.07% (one month), -0.18% (quarter-to-date and year-to-date) and 0.96% (since inception).

CLOs are structured securities backed primarily by below-investment-grade corporate loans. Typical risks of investing in CLO tranches include interest rate risk, credit risk, liquidity risk, prepayment risk and the risk of defaults in the underlying loan pool. Fund prospectuses list principal investment risks such as management risk, collateralized loan obligation risk, non-diversified fund risk, new fund risk, leverage risk and liquidity risk. ETF shares may trade at a premium or discount to NAV, and brokerage commissions can reduce returns.

RCLO’s smaller number of holdings results in larger average position sizes, while BCLO’s larger roster produces smaller average positions across more tranches. Investors should read each fund’s prospectus for full details on objectives, risks, charges and expenses before investing.