MBBB vs. PAAA

Last updated Jun 3, 2026

MBBB (VanEck Moody's Analytics BBB Corporate Bond ETF) and PAAA (PGIM AAA CLO ETF) are both exchange-traded funds - MBBB is a Corporate Bonds fund tracking the MVIS Moody's Analytics US BBB Corporate Bond Index, while PAAA is a CLO fund actively managed by PGIM. MBBB is passively managed, while PAAA is actively managed. Over the past year, MBBB returned 5.81% vs 5.22% for PAAA. At a 0.00 correlation, their price movements are largely independent. MBBB charges 0.25%/yr vs 0.19%/yr for PAAA.

Performance

MBBB vs. PAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Moody's Analytics BBB Corporate Bond ETF (MBBB) 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, MBBB achieves a 0.66% return, which is significantly lower than PAAA's 2.04% return.

MBBB

• 1D: 0.08%
• 1M: 0.54%
• YTD: 0.66%
• 6M: 0.69%
• 1Y: 5.81%
• 3Y*: 6.13%
• 5Y*: 1.25%
• 10Y*: —

PAAA

• 1D: 0.00%
• 1M: 0.41%
• YTD: 2.04%
• 6M: 2.42%
• 1Y: 5.22%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

MBBB vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
MBBB VanEck Moody's Analytics BBB Corporate Bond ETF	0.66%	7.64%	3.68%	5.09%
PAAA PGIM AAA CLO ETF	2.04%	5.37%	7.47%	3.83%

Correlation

The correlation between MBBB and PAAA is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.13
Correlation (All Time) Calculated using the full available price history since Jul 27, 2023	0.00

The correlation between MBBB and PAAA shifts across timeframes, from 0.00 (all time) to 0.13 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

MBBB vs. PAAA — Risk / Return Rank

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

MBBB

MBBB Risk / Return Rank: 38
MBBB Sharpe Ratio Rank: 39
MBBB Sortino Ratio Rank: 40
MBBB Omega Ratio Rank: 37
MBBB Calmar Ratio Rank: 37
MBBB Martin Ratio Rank: 38

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.

MBBB vs. PAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Moody's Analytics BBB Corporate Bond ETF (MBBB) 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.

	MBBB	PAAA	Difference
Sharpe ratio Return per unit of total volatility	1.41	10.71	-9.30
Sortino ratio Return per unit of downside risk	2.07	21.40	-19.33
Omega ratio Gain probability vs. loss probability	1.25	6.51	-5.26
Calmar ratio Return relative to maximum drawdown	1.88	30.60	-28.72
Martin ratio Return relative to average drawdown	6.08	188.70	-182.63
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MBBB vs. PAAA - Sharpe Ratio Comparison

The current MBBB Sharpe Ratio is 1.41, which is lower than the PAAA Sharpe Ratio of 10.71. The chart below compares the historical Sharpe Ratios of MBBB 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.

Sharpe Ratios by Period

	MBBB	PAAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.41	10.71	-9.30
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.20	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.19	6.79	-6.60

Drawdowns

MBBB vs. PAAA - Drawdown Comparison

The maximum MBBB drawdown since its inception was -21.73%, which is greater than PAAA's maximum drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for MBBB and PAAA.

Drawdown Indicators

	MBBB	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-21.73%	-1.04%	-20.69%
Max Drawdown (1Y) Largest decline over 1 year	-2.98%	-0.17%	-2.81%
Max Drawdown (3Y) Largest decline over 3 years	-5.64%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-21.73%	—	—
Current Drawdown Current decline from peak	-0.74%	0.00%	-0.74%
Average Drawdown Average peak-to-trough decline	-6.84%	-0.02%	-6.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.92%	0.03%	+0.89%

Volatility

MBBB vs. PAAA - Volatility Comparison

VanEck Moody's Analytics BBB Corporate Bond ETF (MBBB) has a higher volatility of 1.56% compared to PGIM AAA CLO ETF (PAAA) at 0.11%. This indicates that MBBB'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

	MBBB	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.56%	0.11%	+1.45%
Volatility (6M) Calculated over the trailing 6-month period	3.16%	0.36%	+2.80%
Volatility (1Y) Calculated over the trailing 1-year period	4.14%	0.50%	+3.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.36%	0.98%	+5.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.23%	0.98%	+5.25%

MBBB vs. PAAA - Expense Ratio Comparison

MBBB has a 0.25% expense ratio, which is higher than PAAA's 0.19% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

MBBB vs. PAAA - Dividend Comparison

MBBB's dividend yield for the trailing twelve months is around 5.06%, more than PAAA's 4.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
MBBB VanEck Moody's Analytics BBB Corporate Bond ETF	5.06%	4.99%	4.93%	4.51%	3.22%	2.29%	0.19%
PAAA PGIM AAA CLO ETF	4.88%	5.12%	5.88%	2.76%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MBBB and PAAA in my portfolio?

MBBB and PAAA have a correlation of 0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MBBB or PAAA?

MBBB has higher volatility (1.56%) compared to PAAA (0.11%). In terms of maximum drawdown, MBBB dropped -21.73% vs PAAA's -1.04%.

Which ETF is better, MBBB or PAAA?

On 1-year performance, MBBB leads with 5.81% vs 5.22% for PAAA. On fees, PAAA is cheaper at 0.19% 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, MBBB or PAAA?

Over the 1-year period, MBBB has performed better with a 5.81% return vs 5.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MBBB or PAAA?

PAAA is cheaper with a 0.19% expense ratio, compared with 0.25% for MBBB.

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

MBBB has the higher dividend yield at 5.06%, compared with 4.88% for PAAA.

What is the main difference between MBBB and PAAA?

MBBB is categorized as Corporate Bonds, while PAAA is CLO. They also come from different issuers: VanEck and PGIM. Their fees differ too: 0.25% for MBBB and 0.19% for PAAA.

Which has better risk-adjusted returns?

PAAA currently has the higher Sharpe Ratio (10.71 vs 1.41), 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.