CAAA vs. PAAA

Last updated Jun 23, 2026

CAAA (First Trust Commercial Mortgage Opportunities ETF) and PAAA (PGIM AAA CLO ETF) are both exchange-traded funds - CAAA is a Intermediate Core-Plus Bond fund actively managed by First Trust, while PAAA is a CLO fund actively managed by PGIM. Both are actively managed. Over the past year, CAAA returned 5.03% vs 5.13% for PAAA. At a 0.01 correlation, their price movements are largely independent. CAAA charges 0.55%/yr vs 0.19%/yr for PAAA.

Performance

CAAA vs. PAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Commercial Mortgage Opportunities ETF (CAAA) 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, CAAA achieves a 0.96% return, which is significantly lower than PAAA's 2.24% return.

CAAA

• 1D: 0.05%
• 1M: 0.77%
• YTD: 0.96%
• 6M: 1.08%
• 1Y: 5.03%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PAAA

• 1D: 0.02%
• 1M: 0.26%
• YTD: 2.24%
• 6M: 2.39%
• 1Y: 5.13%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

CAAA vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
CAAA First Trust Commercial Mortgage Opportunities ETF	0.96%	8.03%	4.65%
PAAA PGIM AAA CLO ETF	2.24%	5.37%	6.01%

Correlation

The correlation between CAAA and PAAA is 0.04, 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	0.04
Correlation (All Time) Calculated using the full available price history since Feb 28, 2024	0.01

Return for Risk

CAAA vs. PAAA — Risk / Return Rank

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

CAAA

CAAA Risk / Return Rank: 49
CAAA Sharpe Ratio Rank: 49
CAAA Sortino Ratio Rank: 52
CAAA Omega Ratio Rank: 48
CAAA Calmar Ratio Rank: 50
CAAA Martin Ratio Rank: 45

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.

CAAA vs. PAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Commercial Mortgage Opportunities ETF (CAAA) 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.

	CAAA	PAAA	Difference
Sharpe ratio: Return per unit of total volatility	1.64	11.01	-9.38
Sortino ratio: Return per unit of downside risk	2.46	21.43	-18.97
Omega ratio: Gain probability vs. loss probability	1.30	6.78	-5.48
Calmar ratio: Return relative to maximum drawdown	2.43	29.61	-27.18
Martin ratio: Return relative to average drawdown	7.23	183.59	-176.36

CAAA vs. PAAA - Sharpe Ratio Comparison

The current CAAA Sharpe Ratio is 1.64, which is lower than the PAAA Sharpe Ratio of 11.01. The chart below compares the historical Sharpe Ratios of CAAA 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

CAAA vs. PAAA - Drawdown Comparison

The maximum CAAA drawdown since its inception was -2.24%, which is greater than PAAA's maximum drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for CAAA and PAAA.

Drawdown Indicators

	CAAA	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-2.24%	-1.04%	-1.20%
Max Drawdown (1Y) Largest decline over 1 year	-2.08%	-0.17%	-1.91%
Current Drawdown Current decline from peak	-0.65%	0.00%	-0.65%
Average Drawdown Average peak-to-trough decline	-0.56%	-0.02%	-0.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.70%	0.03%	+0.67%

Volatility

CAAA vs. PAAA - Volatility Comparison

First Trust Commercial Mortgage Opportunities ETF (CAAA) has a higher volatility of 0.98% compared to PGIM AAA CLO ETF (PAAA) at 0.10%. This indicates that CAAA'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

	CAAA	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.98%	0.10%	+0.88%
Volatility (6M) Calculated over the trailing 6-month period	2.24%	0.35%	+1.89%
Volatility (1Y) Calculated over the trailing 1-year period	3.09%	0.47%	+2.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.21%	0.97%	+2.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.21%	0.97%	+2.24%

CAAA vs. PAAA - Expense Ratio Comparison

CAAA has a 0.55% expense ratio, which is higher than PAAA's 0.19% expense ratio.

Dividends

CAAA vs. PAAA - Dividend Comparison

CAAA's dividend yield for the trailing twelve months is around 5.28%, more than PAAA's 4.87% yield.

Position	TTM	2025	2024	2023
CAAA First Trust Commercial Mortgage Opportunities ETF	5.28%	6.09%	4.01%	0.00%
PAAA PGIM AAA CLO ETF	4.87%	5.12%	5.88%	2.76%

Frequently Asked Questions

Can I hold both CAAA and PAAA in my portfolio?

CAAA and PAAA have a correlation of 0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CAAA or PAAA?

CAAA has higher volatility (0.98%) compared to PAAA (0.10%). In terms of maximum drawdown, CAAA dropped -2.24% vs PAAA's -1.04%.

Which ETF is better, CAAA or PAAA?

On 1-year performance, PAAA leads with 5.13% vs 5.03% for CAAA. On fees, PAAA is cheaper at 0.19% per year. On volatility, PAAA has been the lower-risk option at 0.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CAAA or PAAA?

Over the 1-year period, PAAA has performed better with a 5.13% return vs 5.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CAAA or PAAA?

PAAA is cheaper with a 0.19% expense ratio, compared with 0.55% for CAAA.

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

CAAA has the higher dividend yield at 5.28%, compared with 4.87% for PAAA.

What is the main difference between CAAA and PAAA?

CAAA is categorized as Intermediate Core-Plus Bond, while PAAA is CLO. They also come from different issuers: First Trust and PGIM. Their fees differ too: 0.55% for CAAA and 0.19% for PAAA.

Which has better risk-adjusted returns?

PAAA currently has the higher Sharpe Ratio (11.01 vs 1.64), 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.