Fidelity Investments has launched two collateralised loan obligation (CLO) exchange-traded funds (ETFs).
The asset manager has introduced the AAA CLO ETF (FAAA) and the Fidelity CLO ETF (FCLO). FAAA is expected to invest at least 80 per cent of its assets in CLOs rated AAA, while FCLO will invest the majority of its assets in CLOs rated between BBB+ and B- or equivalent.
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“Investors are looking for new return and diversification opportunities, and we’re committed to meeting client needs by developing high-quality solutions like the new CLO ETFs,” said Harley Lank, head of high income and alternatives at Fidelity Investments. “Fidelity has deep credit research capabilities and a longstanding history in the CLO space as both an issuer and investor.”
Both ETFs are listed on the Nasdaq Stock Market and are available to individual investors and financial advisers.
Including the two new funds, Fidelity’s exchange-traded range now comprises 77 ETFs and exchange-traded products (ETPs) with $154bn (£112.9bn) in assets under management.
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The portfolio management team for FAAA includes Dave DeBiase, Rob Galusza and John Mistovich, while Michelle Liu will serve as lead portfolio manager of FCLO alongside Dave DeBiase as co-manager.
“FAAA and FCLO enhance our ETF lineup, delivering straightforward access to an often complex market, reinforced by Fidelity’s proven investment capabilities and active management experience,” said Robin Foley, head of fixed income at Fidelity Investments.
Fidelity Investments has $17.5tn in assets under administration, including $6.8tn in discretionary assets, as of 30 September 2025.
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