AAAD vs. NCLO

Last updated Jul 17, 2026

AAAD (PGIM AAA CLO Aggregate Duration ETF) and NCLO (Nuveen AA-BBB CLO ETF) are both CLO funds. AAAD is actively managed, while NCLO is passively managed. At a 0.26 correlation, their price movements are largely independent. AAAD charges 0.19%/yr vs 0.26%/yr for NCLO.

Performance

AAAD vs. NCLO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM AAA CLO Aggregate Duration ETF (AAAD) and Nuveen AA-BBB CLO ETF (NCLO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

AAAD

• 1D: -0.03%
• 1M: -0.30%
• 6M: —
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

NCLO

• 1D: -0.11%
• 1M: 0.28%
• 6M: 2.33%
• YTD: 2.37%
• 1Y: 5.67%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

AAAD vs. NCLO - Yearly Performance Comparison

	2026 (YTD)
AAAD PGIM AAA CLO Aggregate Duration ETF	0.20%
NCLO Nuveen AA-BBB CLO ETF	0.24%

Correlation

The correlation between AAAD and NCLO is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 3, 2026	0.26

Return for Risk

AAAD vs. NCLO — Risk / Return Rank

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

AAAD

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

NCLO

NCLO Risk / Return Rank: 61
NCLO Sharpe Ratio Rank: 52
NCLO Sortino Ratio Rank: 45
NCLO Omega Ratio Rank: 84
NCLO Calmar Ratio Rank: 45
NCLO Martin Ratio Rank: 77

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.

AAAD vs. NCLO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM AAA CLO Aggregate Duration ETF (AAAD) and Nuveen AA-BBB CLO ETF (NCLO). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AAAD	NCLO	Difference
Sharpe ratio: Return per unit of total volatility	—	1.44	—
Sortino ratio: Return per unit of downside risk	—	1.88	—
Omega ratio: Gain probability vs. loss probability	—	1.40	—
Calmar ratio: Return relative to maximum drawdown	—	1.86	—
Martin ratio: Return relative to average drawdown	—	11.26	—

Drawdowns

AAAD vs. NCLO - Drawdown Comparison

The maximum AAAD drawdown since its inception was -1.13%, smaller than the maximum NCLO drawdown of -3.05%. Use the drawdown chart below to compare losses from any high point for AAAD and NCLO.

Drawdown Indicators

	AAAD	NCLO	Difference
Max Drawdown Largest peak-to-trough decline	-1.13%	-3.05%	+1.92%
Max Drawdown (1Y) Largest decline over 1 year	—	-3.05%	—
Current Drawdown Current decline from peak	-0.76%	-0.87%	+0.11%
Average Drawdown Average peak-to-trough decline	-0.37%	-0.23%	-0.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.50%	—

Volatility

Volatility by Period

	AAAD	NCLO	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.58%	—
Volatility (6M) Calculated over the trailing 6-month period	—	3.76%	—
Volatility (1Y) Calculated over the trailing 1-year period	3.65%	3.94%	-0.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.65%	3.80%	-0.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.65%	3.80%	-0.15%

AAAD vs. NCLO - Expense Ratio Comparison

AAAD has a 0.19% expense ratio, which is lower than NCLO's 0.26% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

AAAD vs. NCLO - Dividend Comparison

AAAD's dividend yield for the trailing twelve months is around 0.03%, less than NCLO's 5.80% yield.

Position	TTM	2025	2024
AAAD PGIM AAA CLO Aggregate Duration ETF	0.03%	0.00%	0.00%
NCLO Nuveen AA-BBB CLO ETF	5.80%	6.09%	0.35%

Frequently Asked Questions

Can I hold both AAAD and NCLO in my portfolio?

AAAD and NCLO have a correlation of 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, AAAD or NCLO?

On fees, AAAD is cheaper at 0.19% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, AAAD or NCLO?

AAAD is cheaper with a 0.19% expense ratio, compared with 0.26% for NCLO.

Which ETF pays a higher dividend yield, AAAD or NCLO?

NCLO has the higher dividend yield at 5.80%, compared with 0.03% for AAAD.

What is the main difference between AAAD and NCLO?

They also come from different issuers: PGIM and Nuveen. Their fees differ too: 0.19% for AAAD and 0.26% for NCLO.