FTMH vs. PAAA

Last updated Jun 4, 2026

FTMH (Franklin Municipal High Yield ETF) and PAAA (PGIM AAA CLO ETF) are both exchange-traded funds - FTMH is a High Yield Muni fund actively managed by Franklin Templeton, while PAAA is a CLO fund actively managed by PGIM. Both are actively managed. At a 0.12 correlation, their price movements are largely independent. FTMH charges 0.35%/yr vs 0.19%/yr for PAAA.

Performance

FTMH vs. PAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Municipal High Yield ETF (FTMH) 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, FTMH achieves a 3.48% return, which is significantly higher than PAAA's 2.03% return.

FTMH

• 1D: 0.00%
• 1M: 1.24%
• YTD: 3.48%
• 6M: 3.92%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 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)

FTMH vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025
FTMH Franklin Municipal High Yield ETF	3.48%	0.11%
PAAA PGIM AAA CLO ETF	2.03%	0.95%

Correlation

The correlation between FTMH and PAAA is 0.12, 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 Oct 28, 2025	0.12

Return for Risk

FTMH vs. PAAA — Risk / Return Rank

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

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.

FTMH vs. PAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Municipal High Yield ETF (FTMH) 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.

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

Sharpe Ratios by Period

	FTMH	PAAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	10.83	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.53	6.78	-5.25

Drawdowns

FTMH vs. PAAA - Drawdown Comparison

The maximum FTMH drawdown since its inception was -3.12%, which is greater than PAAA's maximum drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for FTMH and PAAA.

Drawdown Indicators

	FTMH	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-3.12%	-1.04%	-2.08%
Max Drawdown (1Y) Largest decline over 1 year	—	-0.17%	—
Current Drawdown Current decline from peak	0.00%	-0.01%	+0.01%
Average Drawdown Average peak-to-trough decline	-0.60%	-0.02%	-0.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.03%	—

Volatility

Volatility by Period

	FTMH	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.11%	—
Volatility (6M) Calculated over the trailing 6-month period	—	0.36%	—
Volatility (1Y) Calculated over the trailing 1-year period	4.00%	0.49%	+3.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.00%	0.98%	+3.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.00%	0.98%	+3.02%

FTMH vs. PAAA - Expense Ratio Comparison

FTMH has a 0.35% expense ratio, which is higher than PAAA's 0.19% expense ratio.

Dividends

FTMH vs. PAAA - Dividend Comparison

FTMH's dividend yield for the trailing twelve months is around 2.71%, less than PAAA's 4.88% yield.

Position	TTM	2025	2024	2023
FTMH Franklin Municipal High Yield ETF	2.71%	0.86%	0.00%	0.00%
PAAA PGIM AAA CLO ETF	4.88%	5.12%	5.88%	2.76%

Frequently Asked Questions

Can I hold both FTMH and PAAA in my portfolio?

FTMH and PAAA have a correlation of 0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, FTMH or PAAA?

On fees, PAAA 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, FTMH or PAAA?

PAAA is cheaper with a 0.19% expense ratio, compared with 0.35% for FTMH.

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

PAAA has the higher dividend yield at 4.88%, compared with 2.71% for FTMH.

What is the main difference between FTMH and PAAA?

FTMH is categorized as High Yield Muni, while PAAA is CLO. They also come from different issuers: Franklin Templeton and PGIM. Their fees differ too: 0.35% for FTMH and 0.19% for PAAA.