IEFA vs. PAAA
IEFA (iShares Core MSCI EAFE ETF) and PAAA (PGIM AAA CLO ETF) are both exchange-traded funds - IEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE IMI Index (Net), while PAAA is a CLO fund actively managed by PGIM. IEFA is passively managed, while PAAA is actively managed. Over the past year, IEFA returned 20.89% vs 5.14% for PAAA. At a 0.12 correlation, their price movements are largely independent. IEFA charges 0.07%/yr vs 0.19%/yr for PAAA.
Performance
IEFA vs. PAAA - Performance Comparison
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Returns By Period
In the year-to-date period, IEFA achieves a 9.51% return, which is significantly higher than PAAA's 2.14% return.
IEFA
- 1D
- 0.18%
- 1M
- 0.85%
- YTD
- 9.51%
- 6M
- 11.08%
- 1Y
- 20.89%
- 3Y*
- 16.31%
- 5Y*
- 8.10%
- 10Y*
- 9.90%
PAAA
- 1D
- 0.00%
- 1M
- 0.36%
- YTD
- 2.14%
- 6M
- 2.42%
- 1Y
- 5.14%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
IEFA vs. PAAA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
IEFA iShares Core MSCI EAFE ETF | 9.51% | 32.08% | 3.26% | 3.26% |
PAAA PGIM AAA CLO ETF | 2.14% | 5.37% | 7.47% | 3.83% |
Correlation
The correlation between IEFA 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 | 0.12 |
The correlation between IEFA and PAAA shifts across timeframes, from 0.12 (all time) to 0.23 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
IEFA vs. PAAA — Risk / Return Rank
IEFA
PAAA
IEFA vs. PAAA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI EAFE ETF (IEFA) 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.
| IEFA | PAAA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -9.59 | ||
| Sortino ratioReturn per unit of downside risk | -19.43 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 6.66 | -5.42 |
| Calmar ratioReturn relative to maximum drawdown | 1.83 | 29.67 | -27.84 |
| Martin ratioReturn relative to average drawdown | 6.93 | 183.78 | -176.85 |
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Drawdowns
IEFA vs. PAAA - Drawdown Comparison
The maximum IEFA drawdown since its inception was -34.78%, which is greater than PAAA's maximum drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for IEFA and PAAA.
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Drawdown Indicators
| IEFA | PAAA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.78% | -1.04% | -33.74% |
Max Drawdown (1Y)Largest decline over 1 year | -11.50% | -0.17% | -11.33% |
Max Drawdown (3Y)Largest decline over 3 years | -13.76% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -30.41% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -34.78% | — | — |
Current DrawdownCurrent decline from peak | -0.60% | 0.00% | -0.60% |
Average DrawdownAverage peak-to-trough decline | -6.68% | -0.02% | -6.66% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.03% | 0.03% | +3.00% |
Volatility
IEFA vs. PAAA - Volatility Comparison
iShares Core MSCI EAFE ETF (IEFA) has a higher volatility of 5.50% compared to PGIM AAA CLO ETF (PAAA) at 0.11%. This indicates that IEFA'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.
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Volatility by Period
| IEFA | PAAA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.50% | 0.11% | +5.39% |
Volatility (6M)Calculated over the trailing 6-month period | 13.11% | 0.35% | +12.76% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.54% | 0.47% | +15.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.61% | 0.97% | +15.64% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.31% | 0.97% | +16.34% |
IEFA vs. PAAA - Expense Ratio Comparison
IEFA has a 0.07% 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
IEFA vs. PAAA - Dividend Comparison
IEFA's dividend yield for the trailing twelve months is around 3.24%, less than PAAA's 4.88% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEFA iShares Core MSCI EAFE ETF | 3.24% | 3.55% | 3.47% | 3.20% | 2.70% | 3.32% | 1.90% | 3.18% | 3.46% | 2.57% | 2.96% | 2.63% |
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
IEFA 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.
IEFA has higher volatility (5.50%) compared to PAAA (0.11%). In terms of maximum drawdown, IEFA dropped -34.78% vs PAAA's -1.04%.
On 1-year performance, IEFA leads with 20.89% vs 5.14% for PAAA. On fees, IEFA is cheaper at 0.07% per year. 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.
Over the 1-year period, IEFA has performed better with a 20.89% return vs 5.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IEFA is cheaper with a 0.07% expense ratio, compared with 0.19% for PAAA.
PAAA has the higher dividend yield at 4.88%, compared with 3.24% for IEFA.
IEFA is categorized as Foreign Large Cap Equities, while PAAA is CLO. They also come from different issuers: iShares and PGIM. Their fees differ too: 0.07% for IEFA and 0.19% for PAAA.
PAAA currently has the higher Sharpe Ratio (10.94 vs 1.35), 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.
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