Fidelity CLO ETF

FCLO

Market cap $30.1M

The once obscure CLO ETF market has officially broken out of its niche shell and entered a new phase of growth. Heading into 2026, total global assets quickly topped $35 billion and have now surged past the $50 billion mark in early July.

As of the end of the first quarter, there was approximately $8 trillion in money market funds — a staggering sum, considering the recent performance of equities. Yes, some of that capital is “dry powder” for institutional investors or required cash reserves for fund managers, but $8 trillion is still a jaw-dropping amount.

It's no secret that the fixed income landscape has come back to life after years of relative quiet. Where investors once had to really look for sources of income or yield, the live rate market has brought plenty of opportunities to fixed income.

Uncertainty persists in 2026, affecting the broader fixed income market. Collateralized loan obligations (or CLO) have emerged as a viable option with the advent of exchange-traded funds (ETFs), which have democratized access to retail investors.

Not long ago, CLO ETFs were niche vehicles only talked about at credit conferences and in sophisticated bond manager circles. But fast forward to 2026, and they've entered the mainstream – drawing meaningful interest from both institutions and retail investors.