A turbocharger is provided that includes a turbine housing including a gas inlet passage. A turbine wheel has a plurality of blades and is arranged in the turbine housing. A bearing housing is connected to the turbine housing. A shaft is rotatably supported in the bearing housing and connected to the turbine wheel. A shroud is arranged in surrounding relation to at least a portion of the turbine wheel, the shroud being arranged in spaced relation from and not in contact with the turbine housing. A fastening system secures the shroud relative to the bearing housing. The fastening system is configured to fracture when a force is exerted on the shroud corresponding to at least a portion of the turbine wheel contacting the shroud.