AAA vs. PAAA

Last updated Jun 4, 2026

AAA (AAF First Priority CLO Bond ETF) and PAAA (PGIM AAA CLO ETF) are both CLO funds. Both are actively managed. Over the past year, AAA returned 5.39% vs 5.26% for PAAA. At a 0.10 correlation, their price movements are largely independent. AAA charges 0.25%/yr vs 0.19%/yr for PAAA.

Performance

AAA vs. PAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AAF First Priority CLO Bond ETF (AAA) and PGIM AAA CLO ETF (PAAA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AAA achieves a 1.86% return, which is significantly lower than PAAA's 2.03% return.

AAA

• 1D: -0.22%
• 1M: 0.67%
• YTD: 1.86%
• 6M: 2.19%
• 1Y: 5.39%
• 3Y*: 6.50%
• 5Y*: 4.64%
• 10Y*: —

PAAA

• 1D: -0.01%
• 1M: 0.40%
• YTD: 2.03%
• 6M: 2.45%
• 1Y: 5.26%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

AAA vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
AAA AAF First Priority CLO Bond ETF	1.86%	4.92%	6.85%	4.20%
PAAA PGIM AAA CLO ETF	2.03%	5.37%	7.47%	3.83%

Correlation

The correlation between AAA and PAAA is 0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.03
Correlation (All Time) Calculated using the full available price history since Jul 27, 2023	0.10

Return for Risk

AAA vs. PAAA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AAA

AAA Risk / Return Rank: 85
AAA Sharpe Ratio Rank: 71
AAA Sortino Ratio Rank: 87
AAA Omega Ratio Rank: 77
AAA Calmar Ratio Rank: 96
AAA Martin Ratio Rank: 94

PAAA

PAAA Risk / Return Rank: 99
PAAA Sharpe Ratio Rank: 99
PAAA Sortino Ratio Rank: 99
PAAA Omega Ratio Rank: 100
PAAA Calmar Ratio Rank: 99
PAAA Martin Ratio Rank: 99

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AAA vs. PAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AAF First Priority CLO Bond ETF (AAA) and PGIM AAA CLO ETF (PAAA). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	AAA	PAAA	Difference
Sharpe ratio: Return per unit of total volatility	2.36	10.83	-8.48
Sortino ratio: Return per unit of downside risk	4.06	21.80	-17.74
Omega ratio: Gain probability vs. loss probability	1.47	6.72	-5.26
Calmar ratio: Return relative to maximum drawdown	8.98	30.32	-21.34
Martin ratio: Return relative to average drawdown	27.78	187.65	-159.87
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AAA vs. PAAA - Sharpe Ratio Comparison

The current AAA Sharpe Ratio is 2.36, which is lower than the PAAA Sharpe Ratio of 10.83. The chart below compares the historical Sharpe Ratios of AAA and PAAA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AAA	PAAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.36	10.83	-8.48
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	2.05	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.93	6.78	-4.85

Drawdowns

AAA vs. PAAA - Drawdown Comparison

The maximum AAA drawdown since its inception was -2.63%, which is greater than PAAA's maximum drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for AAA and PAAA.

Drawdown Indicators

	AAA	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-2.63%	-1.04%	-1.59%
Max Drawdown (1Y) Largest decline over 1 year	-0.60%	-0.17%	-0.43%
Max Drawdown (3Y) Largest decline over 3 years	-2.40%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-2.63%	—	—
Current Drawdown Current decline from peak	-0.22%	-0.01%	-0.21%
Average Drawdown Average peak-to-trough decline	-0.30%	-0.02%	-0.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.19%	0.03%	+0.16%

Volatility

AAA vs. PAAA - Volatility Comparison

AAF First Priority CLO Bond ETF (AAA) has a higher volatility of 0.74% compared to PGIM AAA CLO ETF (PAAA) at 0.11%. This indicates that AAA's price experiences larger fluctuations and is considered to be riskier than PAAA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAA	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.74%	0.11%	+0.63%
Volatility (6M) Calculated over the trailing 6-month period	1.76%	0.36%	+1.40%
Volatility (1Y) Calculated over the trailing 1-year period	2.30%	0.49%	+1.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.28%	0.98%	+1.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.15%	0.98%	+1.17%

AAA vs. PAAA - Expense Ratio Comparison

AAA has a 0.25% expense ratio, which is higher than PAAA's 0.19% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

AAA vs. PAAA - Dividend Comparison

AAA's dividend yield for the trailing twelve months is around 4.90%, which matches PAAA's 4.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
AAA AAF First Priority CLO Bond ETF	4.90%	5.11%	6.17%	6.11%	2.78%	1.06%	0.32%
PAAA PGIM AAA CLO ETF	4.88%	5.12%	5.88%	2.76%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both AAA and PAAA in my portfolio?

AAA and PAAA have a correlation of 0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AAA or PAAA?

AAA has higher volatility (0.74%) compared to PAAA (0.11%). In terms of maximum drawdown, AAA dropped -2.63% vs PAAA's -1.04%.

Which ETF is better, AAA or PAAA?

On 1-year performance, AAA leads with 5.39% vs 5.26% for PAAA. On fees, PAAA is cheaper at 0.19% per year. On volatility, PAAA has been the lower-risk option at 0.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AAA or PAAA?

Over the 1-year period, AAA has performed better with a 5.39% return vs 5.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AAA or PAAA?

PAAA is cheaper with a 0.19% expense ratio, compared with 0.25% for AAA.

Which ETF pays a higher dividend yield, AAA or PAAA?

AAA has the higher dividend yield at 4.90%, compared with 4.88% for PAAA.

What is the main difference between AAA and PAAA?

They also come from different issuers: Alternative Access Funds LLC and PGIM. Their fees differ too: 0.25% for AAA and 0.19% for PAAA.

Which has better risk-adjusted returns?

PAAA currently has the higher Sharpe Ratio (10.83 vs 2.36), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.