Invesco AAA CLO Floating Rate Note ETF

Invesco AAA CLO Floating Rate Note ETF (ICLO) is an actively managed bond fund. It buys the top-rated AAA slices of collateralized loan obligations, or CLOs, which are pools of corporate loans repackaged into bonds. Its interest payments float with short-term rates, and its deepest drop since its December 2022 launch was 3.5%. It charges 0.19% a year, below the 0.31% average of the funds it was matched with.

• Over the year to Oct 27, 2026, ICLO returned +4.8%, 2nd of 8 among similar funds.
• Its worst full calendar year was 2025 (+5.3%); its best was 2023 (+9.0%).
• The deepest fall in its price history was 3.5% (Mar 3, 2025 to Apr 4, 2025), recovered by Apr 24, 2025.

As of Jul 31, 2026, the fund held 150 securities; the ten largest made up 22.76% of assets, and 2.02% sat in cash and money-market holdings.

The bonds mature in 11.4 years on average (weighted by size), with an average coupon of 4.92%.

• Over the three months to Jul 31, 2026, investors added a net $79.3M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.45%, +0.38%, +0.40%.

ICLO is actively managed, not index-based. Normally at least 80% of net assets sit in floating-rate notes from collateralized loan obligations (CLOs) rated AAA, the top credit grade, when bought. A CLO is a trust that pools corporate loans, including low-rated loans, and sells debt in layers called tranches. The AAA layer is paid first, so lower layers take losses before it. Interest on these notes resets with short-term rates, which tends to limit rate-driven price swings.

The sub-adviser, Invesco Senior Secured Management, pairs a big-picture economic view with deal-by-deal credit analysis. Up to 15% may go into AA-rated notes, the next grade down; it buys nothing lower. Unrated notes the sub-adviser judges AAA-equivalent count toward the 80%. The fund mainly buys CLOs of large loans, typically over $250 million each; CLOs of smaller, middle-market loans and fixed-rate notes are each capped at 15%.

Up to 20% may be in foreign-currency CLOs. The fund may hedge that currency risk with forwards or futures, the only derivatives it may use. As of July 31, 2026, it held about 150 securities; the 10 largest positions made up 22.8% of assets, led by Elmwood CLO 29 at 3.8%. Turnover, the share of holdings replaced in a year, was 61%, per the February 2026 prospectus.

• ICLO charges 0.19% a year, versus an average of 0.31% for the similar funds below (5th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $19 in the first year and $242 over 10 years (assuming a 5% annual return).

Its stated goal is current income and capital preservation, and it pays monthly from top-rated floating-rate CLO notes.

ICLO could be an income holding that aims to keep its value steady. Its trailing 12-month yield was 4.7% as of October 27, 2026, and it pays monthly. It charges 0.19% a year, which works out to $242 over 10 years in the SEC's standard $10,000 example. It launched in December 2022, so it has no record through the 2008 crisis, the 2020 COVID crash or the 2022 bear market. Its weakest calendar year was 2025, and that was still a 5.4% gain, per the prospectus. Its deepest drop was 3.5%, from March 3 to April 4, 2025, and it was back to its old high by April 24. Someone who may need to sell in a bad year should know it hasn't been tested in a deep credit crisis. Its income would also fall if short-term rates dropped. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).