BIL vs. PAAA

Last updated Jun 13, 2026

BIL (SPDR Bloomberg 1-3 Month T-Bill ETF) and PAAA (PGIM AAA CLO ETF) are both exchange-traded funds - BIL is a Government Bonds fund tracking the Bloomberg 1-3 Month U.S. Treasury Bill Index, while PAAA is a CLO fund actively managed by PGIM. BIL is passively managed, while PAAA is actively managed. Over the past year, BIL returned 3.89% vs 5.14% for PAAA. At a 0.11 correlation, their price movements are largely independent. BIL charges 0.14%/yr vs 0.19%/yr for PAAA.

Performance

BIL vs. PAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) 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, BIL achieves a 1.60% return, which is significantly lower than PAAA's 2.14% return.

BIL

• 1D: 0.03%
• 1M: 0.32%
• YTD: 1.60%
• 6M: 1.76%
• 1Y: 3.89%
• 3Y*: 4.63%
• 5Y*: 3.43%
• 10Y*: 2.20%

PAAA

• 1D: 0.00%
• 1M: 0.36%
• YTD: 2.14%
• 6M: 2.42%
• 1Y: 5.14%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BIL vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
BIL SPDR Bloomberg 1-3 Month T-Bill ETF	1.60%	4.15%	5.19%	2.33%
PAAA PGIM AAA CLO ETF	2.14%	5.37%	7.47%	3.83%

Correlation

The correlation between BIL and PAAA is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.11
Correlation (All Time) Calculated using the full available price history since Jul 26, 2023	0.11

Return for Risk

BIL vs. PAAA — Risk / Return Rank

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

BIL

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

PAAA

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

BIL vs. PAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) 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.

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.

	BIL	PAAA	Difference
Sharpe ratio: Return per unit of total volatility	19.63	10.94	+8.69
Sortino ratio: Return per unit of downside risk	175.17	21.40	+153.76
Omega ratio: Gain probability vs. loss probability	88.41	6.66	+81.74
Calmar ratio: Return relative to maximum drawdown	357.44	29.67	+327.77
Martin ratio: Return relative to average drawdown	2,834.34	183.78	+2,650.55

BIL vs. PAAA - Sharpe Ratio Comparison

The current BIL Sharpe Ratio is 19.63, which is higher than the PAAA Sharpe Ratio of 10.94. The chart below compares the historical Sharpe Ratios of BIL 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.

Drawdowns

BIL vs. PAAA - Drawdown Comparison

The maximum BIL drawdown since its inception was -0.78%, smaller than the maximum PAAA drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for BIL and PAAA.

Drawdown Indicators

	BIL	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-0.78%	-1.04%	+0.26%
Max Drawdown (1Y) Largest decline over 1 year	-0.01%	-0.17%	+0.16%
Max Drawdown (3Y) Largest decline over 3 years	-0.01%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-0.09%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-0.21%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.26%	-0.02%	-0.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.00%	0.03%	-0.03%

Volatility

BIL vs. PAAA - Volatility Comparison

The current volatility for SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) is 0.06%, while PGIM AAA CLO ETF (PAAA) has a volatility of 0.11%. This indicates that BIL experiences smaller price fluctuations and is considered to be less risky than PAAA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BIL	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.06%	0.11%	-0.05%
Volatility (6M) Calculated over the trailing 6-month period	0.14%	0.35%	-0.21%
Volatility (1Y) Calculated over the trailing 1-year period	0.20%	0.47%	-0.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.26%	0.97%	-0.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.26%	0.97%	-0.71%

BIL vs. PAAA - Expense Ratio Comparison

BIL has a 0.14% expense ratio, which is lower than PAAA's 0.19% 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

BIL vs. PAAA - Dividend Comparison

BIL's dividend yield for the trailing twelve months is around 3.86%, less than PAAA's 4.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
BIL SPDR Bloomberg 1-3 Month T-Bill ETF	3.86%	4.13%	5.03%	4.92%	1.35%	0.00%	0.30%	2.05%	1.66%	0.68%	0.07%
PAAA PGIM AAA CLO ETF	4.88%	5.12%	5.88%	2.76%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BIL and PAAA in my portfolio?

BIL and PAAA have a correlation of 0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BIL or PAAA?

PAAA has higher volatility (0.11%) compared to BIL (0.06%). In terms of maximum drawdown, BIL dropped -0.78% vs PAAA's -1.04%.

Which ETF is better, BIL or PAAA?

On 1-year performance, PAAA leads with 5.14% vs 3.89% for BIL. On fees, BIL is cheaper at 0.14% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BIL or PAAA?

Over the 1-year period, PAAA has performed better with a 5.14% return vs 3.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BIL or PAAA?

BIL is cheaper with a 0.14% expense ratio, compared with 0.19% for PAAA.

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

PAAA has the higher dividend yield at 4.88%, compared with 3.86% for BIL.

What is the main difference between BIL and PAAA?

BIL is categorized as Government Bonds, while PAAA is CLO. They also come from different issuers: State Street and PGIM. Their fees differ too: 0.14% for BIL and 0.19% for PAAA.

Which has better risk-adjusted returns?

BIL currently has the higher Sharpe Ratio (19.63 vs 10.94), 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.