IEMG vs. PAAA

Last updated Jun 13, 2026

IEMG (iShares Core MSCI Emerging Markets ETF) and PAAA (PGIM AAA CLO ETF) are both exchange-traded funds - IEMG is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Investable Market Index (USD) (Net), while PAAA is a CLO fund actively managed by PGIM. IEMG is passively managed, while PAAA is actively managed. Over the past year, IEMG returned 42.50% vs 5.14% for PAAA. At a 0.11 correlation, their price movements are largely independent. IEMG charges 0.09%/yr vs 0.19%/yr for PAAA.

Performance

IEMG vs. PAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core MSCI Emerging Markets ETF (IEMG) 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, IEMG achieves a 22.84% return, which is significantly higher than PAAA's 2.14% return.

IEMG

• 1D: 0.61%
• 1M: 0.63%
• YTD: 22.84%
• 6M: 25.59%
• 1Y: 42.50%
• 3Y*: 21.33%
• 5Y*: 7.15%
• 10Y*: 10.42%

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)

IEMG vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
IEMG iShares Core MSCI Emerging Markets ETF	22.84%	32.56%	6.50%	0.44%
PAAA PGIM AAA CLO ETF	2.14%	5.37%	7.47%	3.83%

Correlation

The correlation between IEMG and PAAA is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (All Time) Calculated using the full available price history since Jul 26, 2023	0.11

Return for Risk

IEMG vs. PAAA — Risk / Return Rank

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

IEMG

IEMG Risk / Return Rank: 73
IEMG Sharpe Ratio Rank: 73
IEMG Sortino Ratio Rank: 67
IEMG Omega Ratio Rank: 76
IEMG Calmar Ratio Rank: 73
IEMG Martin Ratio Rank: 73

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.

IEMG vs. PAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI Emerging Markets ETF (IEMG) 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.

	IEMG	PAAA	Difference
Sharpe ratio: Return per unit of total volatility	2.03	10.94	-8.91
Sortino ratio: Return per unit of downside risk	2.65	21.40	-18.75
Omega ratio: Gain probability vs. loss probability	1.39	6.66	-5.28
Calmar ratio: Return relative to maximum drawdown	3.23	29.67	-26.44
Martin ratio: Return relative to average drawdown	11.89	183.78	-171.89

IEMG vs. PAAA - Sharpe Ratio Comparison

The current IEMG Sharpe Ratio is 2.03, which is lower than the PAAA Sharpe Ratio of 10.94. The chart below compares the historical Sharpe Ratios of IEMG 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

IEMG vs. PAAA - Drawdown Comparison

The maximum IEMG drawdown since its inception was -38.71%, which is greater than PAAA's maximum drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for IEMG and PAAA.

Drawdown Indicators

	IEMG	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-38.71%	-1.04%	-37.67%
Max Drawdown (1Y) Largest decline over 1 year	-13.21%	-0.17%	-13.04%
Max Drawdown (3Y) Largest decline over 3 years	-17.21%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-35.75%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-38.71%	—	—
Current Drawdown Current decline from peak	-3.98%	0.00%	-3.98%
Average Drawdown Average peak-to-trough decline	-12.95%	-0.02%	-12.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.59%	0.03%	+3.56%

Volatility

IEMG vs. PAAA - Volatility Comparison

iShares Core MSCI Emerging Markets ETF (IEMG) has a higher volatility of 10.60% compared to PGIM AAA CLO ETF (PAAA) at 0.11%. This indicates that IEMG'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

	IEMG	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.60%	0.11%	+10.49%
Volatility (6M) Calculated over the trailing 6-month period	18.89%	0.35%	+18.54%
Volatility (1Y) Calculated over the trailing 1-year period	21.08%	0.47%	+20.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.73%	0.97%	+17.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.17%	0.97%	+19.20%

IEMG vs. PAAA - Expense Ratio Comparison

IEMG has a 0.09% 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

IEMG vs. PAAA - Dividend Comparison

IEMG's dividend yield for the trailing twelve months is around 2.24%, less than PAAA's 4.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEMG iShares Core MSCI Emerging Markets ETF	2.24%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%
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 IEMG and PAAA in my portfolio?

IEMG and PAAA have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IEMG or PAAA?

IEMG has higher volatility (10.60%) compared to PAAA (0.11%). In terms of maximum drawdown, IEMG dropped -38.71% vs PAAA's -1.04%.

Which ETF is better, IEMG or PAAA?

On 1-year performance, IEMG leads with 42.50% vs 5.14% for PAAA. On fees, IEMG is cheaper at 0.09% 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.

Which ETF has performed better, IEMG or PAAA?

Over the 1-year period, IEMG has performed better with a 42.50% return vs 5.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEMG or PAAA?

IEMG is cheaper with a 0.09% expense ratio, compared with 0.19% for PAAA.

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

PAAA has the higher dividend yield at 4.88%, compared with 2.24% for IEMG.

What is the main difference between IEMG and PAAA?

IEMG is categorized as Emerging Markets Diversified, while PAAA is CLO. They also come from different issuers: iShares and PGIM. Their fees differ too: 0.09% for IEMG and 0.19% for PAAA.

Which has better risk-adjusted returns?

PAAA currently has the higher Sharpe Ratio (10.94 vs 2.03), 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.