FLOT vs. PAAA

Last updated Jun 13, 2026

FLOT (iShares Floating Rate Bond ETF) and PAAA (PGIM AAA CLO ETF) are both exchange-traded funds - FLOT is a Ultrashort Bond fund tracking the Bloomberg US Floating Rate Note < 5 Years Index, while PAAA is a CLO fund actively managed by PGIM. FLOT is passively managed, while PAAA is actively managed. Over the past year, FLOT returned 4.87% vs 5.14% for PAAA. At a 0.18 correlation, their price movements are largely independent. FLOT charges 0.15%/yr vs 0.19%/yr for PAAA.

Performance

FLOT vs. PAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Floating Rate Bond ETF (FLOT) 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, FLOT achieves a 1.99% return, which is significantly lower than PAAA's 2.14% return.

FLOT

• 1D: 0.02%
• 1M: 0.47%
• YTD: 1.99%
• 6M: 2.23%
• 1Y: 4.87%
• 3Y*: 5.66%
• 5Y*: 4.22%
• 10Y*: 3.04%

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)

FLOT vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FLOT iShares Floating Rate Bond ETF	1.99%	4.91%	6.53%	2.71%
PAAA PGIM AAA CLO ETF	2.14%	5.37%	7.47%	3.83%

Correlation

The correlation between FLOT and PAAA is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (All Time) Calculated using the full available price history since Jul 26, 2023	0.18

Return for Risk

FLOT vs. PAAA — Risk / Return Rank

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

FLOT

FLOT Risk / Return Rank: 99
FLOT Sharpe Ratio Rank: 99
FLOT Sortino Ratio Rank: 99
FLOT Omega Ratio Rank: 99
FLOT Calmar Ratio Rank: 98
FLOT Martin Ratio Rank: 99

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.

FLOT vs. PAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Floating Rate Bond ETF (FLOT) 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.

	FLOT	PAAA	Difference
Sharpe ratio: Return per unit of total volatility	6.56	10.94	-4.38
Sortino ratio: Return per unit of downside risk	11.84	21.40	-9.56
Omega ratio: Gain probability vs. loss probability	3.23	6.66	-3.43
Calmar ratio: Return relative to maximum drawdown	11.32	29.67	-18.35
Martin ratio: Return relative to average drawdown	105.27	183.78	-78.51

FLOT vs. PAAA - Sharpe Ratio Comparison

The current FLOT Sharpe Ratio is 6.56, which is lower than the PAAA Sharpe Ratio of 10.94. The chart below compares the historical Sharpe Ratios of FLOT 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

FLOT vs. PAAA - Drawdown Comparison

The maximum FLOT drawdown since its inception was -13.54%, which is greater than PAAA's maximum drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for FLOT and PAAA.

Drawdown Indicators

	FLOT	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-13.54%	-1.04%	-12.50%
Max Drawdown (1Y) Largest decline over 1 year	-0.43%	-0.17%	-0.26%
Max Drawdown (3Y) Largest decline over 3 years	-1.57%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-2.36%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-13.54%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.21%	-0.02%	-0.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.05%	0.03%	+0.02%

Volatility

FLOT vs. PAAA - Volatility Comparison

iShares Floating Rate Bond ETF (FLOT) has a higher volatility of 0.21% compared to PGIM AAA CLO ETF (PAAA) at 0.11%. This indicates that FLOT'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

	FLOT	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.21%	0.11%	+0.10%
Volatility (6M) Calculated over the trailing 6-month period	0.63%	0.35%	+0.28%
Volatility (1Y) Calculated over the trailing 1-year period	0.75%	0.47%	+0.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.77%	0.97%	+0.80%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.15%	0.97%	+3.18%

FLOT vs. PAAA - Expense Ratio Comparison

FLOT has a 0.15% 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

FLOT vs. PAAA - Dividend Comparison

FLOT's dividend yield for the trailing twelve months is around 4.53%, less than PAAA's 4.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FLOT iShares Floating Rate Bond ETF	4.53%	4.84%	5.82%	5.66%	2.06%	0.43%	1.25%	2.78%	2.41%	1.46%	0.97%	0.53%
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%	0.00%

Frequently Asked Questions

Can I hold both FLOT and PAAA in my portfolio?

FLOT and PAAA have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLOT or PAAA?

FLOT has higher volatility (0.21%) compared to PAAA (0.11%). In terms of maximum drawdown, FLOT dropped -13.54% vs PAAA's -1.04%.

Which ETF is better, FLOT or PAAA?

On 1-year performance, PAAA leads with 5.14% vs 4.87% for FLOT. On fees, FLOT is cheaper at 0.15% 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, FLOT or PAAA?

Over the 1-year period, PAAA has performed better with a 5.14% return vs 4.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLOT or PAAA?

FLOT is cheaper with a 0.15% expense ratio, compared with 0.19% for PAAA.

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

PAAA has the higher dividend yield at 4.88%, compared with 4.53% for FLOT.

What is the main difference between FLOT and PAAA?

FLOT is categorized as Ultrashort Bond, while PAAA is CLO. They also come from different issuers: iShares and PGIM. Their fees differ too: 0.15% for FLOT and 0.19% for PAAA.

Which has better risk-adjusted returns?

PAAA currently has the higher Sharpe Ratio (10.94 vs 6.56), 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.