NCLO vs. AAAD

Last updated Jul 16, 2026

NCLO (Nuveen AA-BBB CLO ETF) and AAAD (PGIM AAA CLO Aggregate Duration ETF) are both CLO funds. NCLO is passively managed, while AAAD is actively managed. At a 0.25 correlation, their price movements are largely independent. NCLO charges 0.26%/yr vs 0.19%/yr for AAAD.

Performance

NCLO vs. AAAD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Nuveen AA-BBB CLO ETF (NCLO) and PGIM AAA CLO Aggregate Duration ETF (AAAD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

NCLO

• 1D: 0.22%
• 1M: 0.46%
• 6M: 2.48%
• YTD: 2.48%
• 1Y: 5.75%
• 3Y*: —
• 5Y*: —
• 10Y*: —

AAAD

• 1D: 0.13%
• 1M: -0.05%
• 6M: —
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

NCLO vs. AAAD - Yearly Performance Comparison

	2026 (YTD)
NCLO Nuveen AA-BBB CLO ETF	0.35%
AAAD PGIM AAA CLO Aggregate Duration ETF	0.23%

Correlation

The correlation between NCLO and AAAD is 0.25, 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 Jun 3, 2026	0.25

Return for Risk

NCLO vs. AAAD — Risk / Return Rank

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

NCLO

NCLO Risk / Return Rank: 61
NCLO Sharpe Ratio Rank: 53
NCLO Sortino Ratio Rank: 45
NCLO Omega Ratio Rank: 85
NCLO Calmar Ratio Rank: 45
NCLO Martin Ratio Rank: 77

AAAD

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

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.

NCLO vs. AAAD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Nuveen AA-BBB CLO ETF (NCLO) and PGIM AAA CLO Aggregate Duration ETF (AAAD). 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.

	NCLO	AAAD	Difference
Sharpe ratio: Return per unit of total volatility	1.47	—	—
Sortino ratio: Return per unit of downside risk	1.91	—	—
Omega ratio: Gain probability vs. loss probability	1.41	—	—
Calmar ratio: Return relative to maximum drawdown	1.89	—	—
Martin ratio: Return relative to average drawdown	11.50	—	—

Drawdowns

NCLO vs. AAAD - Drawdown Comparison

The maximum NCLO drawdown since its inception was -3.05%, which is greater than AAAD's maximum drawdown of -1.13%. Use the drawdown chart below to compare losses from any high point for NCLO and AAAD.

Drawdown Indicators

	NCLO	AAAD	Difference
Max Drawdown Largest peak-to-trough decline	-3.05%	-1.13%	-1.92%
Max Drawdown (1Y) Largest decline over 1 year	-3.05%	—	—
Current Drawdown Current decline from peak	-0.76%	-0.73%	-0.03%
Average Drawdown Average peak-to-trough decline	-0.22%	-0.35%	+0.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.50%	—	—

Volatility

Volatility by Period

	NCLO	AAAD	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.57%	—	—
Volatility (6M) Calculated over the trailing 6-month period	3.76%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	3.94%	3.71%	+0.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.80%	3.71%	+0.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.80%	3.71%	+0.09%

NCLO vs. AAAD - Expense Ratio Comparison

NCLO has a 0.26% expense ratio, which is higher than AAAD'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

NCLO vs. AAAD - Dividend Comparison

NCLO's dividend yield for the trailing twelve months is around 5.79%, more than AAAD's 0.03% yield.

Position	TTM	2025	2024
AAAD PGIM AAA CLO Aggregate Duration ETF	0.03%	0.00%	0.00%
NCLO Nuveen AA-BBB CLO ETF	5.79%	6.09%	0.35%

Frequently Asked Questions

Can I hold both NCLO and AAAD in my portfolio?

NCLO and AAAD have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, NCLO or AAAD?

On fees, AAAD 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, NCLO or AAAD?

AAAD is cheaper with a 0.19% expense ratio, compared with 0.26% for NCLO.

Which ETF pays a higher dividend yield, NCLO or AAAD?

NCLO has the higher dividend yield at 5.79%, compared with 0.03% for AAAD.

What is the main difference between NCLO and AAAD?

They also come from different issuers: Nuveen and PGIM. Their fees differ too: 0.26% for NCLO and 0.19% for AAAD.