Fidelity CLO ETF (FCLO)

The Fidelity CLO ETF (FCLO) is an actively managed fixed income fund from Fidelity Investments that invests in the debt of collateralized loan obligations (CLOs).

CLOs are securitized pools of senior secured corporate loans, and their debt is issued in tranches with different credit ratings and levels of priority. FCLO can invest across a range of these tranches, generally focusing on investment-grade debt, giving it the flexibility to seek higher income than funds restricted to the top-rated tranches.

CLO debt pays floating-rate coupons, so the fund's income tends to move with short-term interest rates. Fidelity's analysts evaluate individual CLO structures, their collateral and their managers when choosing holdings.