ICLO vs. PAAA

Last updated Aug 2, 2026

ICLO (Invesco AAA CLO Floating Rate Note ETF) and PAAA (PGIM AAA CLO ETF) are both CLO funds. Both are actively managed. Over the past 3 years, ICLO returned 6.30%/yr vs 6.48%/yr for PAAA. Their 0.12 correlation means their historical movements had little consistent relationship. Both charge a 0.19% expense ratio.

Performance

ICLO vs. PAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco AAA CLO Floating Rate Note ETF (ICLO) and PGIM AAA CLO ETF (PAAA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with ICLO having a 2.87% return and PAAA slightly lower at 2.76%.

ICLO

• 1D: 0.00%
• 1M: 0.25%
• 6M: 2.37%
• YTD: 2.87%
• 1Y: 5.34%
• 3Y*: 6.30%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 6.72%

PAAA

• 1D: 0.02%
• 1M: 0.33%
• 6M: 2.20%
• YTD: 2.76%
• 1Y: 4.99%
• 3Y*: 6.48%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 6.48%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ICLO Invesco AAA CLO Floating Rate Note ETF	$3.66M	$2.96M	$3.08M
PAAA PGIM AAA CLO ETF	$115.54M	$105.02M	$101.96M

ICLO vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
ICLO Invesco AAA CLO Floating Rate Note ETF	2.87%	5.27%	7.05%	4.05%
PAAA PGIM AAA CLO ETF	2.76%	5.37%	7.47%	3.83%

Correlation

The correlation between ICLO and PAAA is 0.07, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.07
Correlation (3Y) Balances recent behavior with more history.	0.12
Correlation (All Time) Calculated using the full available price history since Jul 26, 2023	0.12

Return for Risk

ICLO vs. PAAA — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ICLO

ICLO Risk / Return Rank: 98
ICLO Sharpe Ratio Rank: 98
ICLO Sortino Ratio Rank: 98
ICLO Omega Ratio Rank: 98
ICLO Calmar Ratio Rank: 99
ICLO 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) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ICLO vs. PAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco AAA CLO Floating Rate Note ETF (ICLO) 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.

	ICLO	PAAA	Difference
Sharpe ratio: Return per unit of total volatility	4.05	10.73	-6.68
Sortino ratio: Return per unit of downside risk	6.99	20.88	-13.89
Omega ratio: Gain probability vs. loss probability	1.99	6.51	-4.52
Calmar ratio: Return relative to maximum drawdown	16.47	28.82	-12.35
Martin ratio: Return relative to average drawdown	70.29	178.72	-108.43

ICLO vs. PAAA - Sharpe Ratio Comparison

The current ICLO Sharpe Ratio is 4.05, which is lower than the PAAA Sharpe Ratio of 10.73. The chart below compares the historical Sharpe Ratios of ICLO 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

ICLO vs. PAAA - Drawdown Comparison

The maximum ICLO drawdown since its inception was -3.47%, which is greater than PAAA's maximum drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for ICLO and PAAA.

Drawdown Indicators

	ICLO	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-3.47%	-1.04%	-2.43%
Max Drawdown (1Y) Largest decline over 1 year	-0.31%	-0.17%	-0.14%
Max Drawdown (3Y) Largest decline over 3 years	-3.47%	-1.04%	-2.43%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.06%	-0.02%	-0.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.07%	0.03%	+0.04%

Volatility

ICLO vs. PAAA - Volatility Comparison

Invesco AAA CLO Floating Rate Note ETF (ICLO) has a higher volatility of 0.25% compared to PGIM AAA CLO ETF (PAAA) at 0.11%. This indicates that ICLO'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

	ICLO	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.25%	0.11%	+0.14%
Volatility (6M) Calculated over the trailing 6-month period	0.81%	0.36%	+0.45%
Volatility (1Y) Calculated over the trailing 1-year period	1.28%	0.47%	+0.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.38%	0.95%	+1.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.38%	0.95%	+1.43%

ICLO vs. PAAA - Expense Ratio Comparison

Both ICLO and PAAA have an expense ratio of 0.19%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

ICLO vs. PAAA - Dividend Comparison

ICLO's dividend yield for the trailing twelve months is around 4.96%, less than PAAA's 5.23% yield.

Position	TTM	2025	2024	2023
ICLO Invesco AAA CLO Floating Rate Note ETF	4.96%	5.49%	6.51%	7.01%
PAAA PGIM AAA CLO ETF	4.80%	5.12%	5.88%	2.76%

Frequently Asked Questions

Can I hold both ICLO and PAAA in my portfolio?

ICLO and PAAA have a correlation of 0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ICLO or PAAA?

ICLO has higher volatility (0.25%) compared to PAAA (0.11%). In terms of maximum drawdown, ICLO dropped -3.47% vs PAAA's -1.04%.

Which ETF is better, ICLO or PAAA?

On 3-year performance, PAAA leads with 6.48% vs 6.30% for ICLO. Both ETFs have the same 0.19% expense ratio. On volatility, PAAA has been the lower-risk option at 0.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ICLO or PAAA?

Over the 3-year period, PAAA has performed better with a 6.48% return vs 6.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ICLO or PAAA?

ICLO and PAAA have the same expense ratio: 0.19% per year.

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

ICLO has the higher dividend yield at 4.96%, compared with 4.80% for PAAA.

What is the main difference between ICLO and PAAA?

They also come from different issuers: Invesco and PGIM.

Which has better risk-adjusted returns?

PAAA currently has the higher Sharpe Ratio (10.73 vs 4.05), 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.