NOVP vs. PAAA

Last updated Jun 23, 2026

NOVP (PGIM S&P 500 Buffer 12 ETF - November) and PAAA (PGIM AAA CLO ETF) are both exchange-traded funds - NOVP is a Defined Outcome fund actively managed by PGIM, while PAAA is a CLO fund actively managed by PGIM. Both are actively managed. Over the past year, NOVP returned 16.66% vs 5.13% for PAAA. At a 0.23 correlation, their price movements are largely independent. NOVP charges 0.50%/yr vs 0.19%/yr for PAAA.

Performance

NOVP vs. PAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM S&P 500 Buffer 12 ETF - November (NOVP) 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, NOVP achieves a 6.63% return, which is significantly higher than PAAA's 2.24% return.

NOVP

• 1D: -0.21%
• 1M: 0.96%
• YTD: 6.63%
• 6M: 6.56%
• 1Y: 16.66%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PAAA

• 1D: 0.02%
• 1M: 0.26%
• YTD: 2.24%
• 6M: 2.39%
• 1Y: 5.13%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

NOVP vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
NOVP PGIM S&P 500 Buffer 12 ETF - November	6.63%	12.14%	8.67%
PAAA PGIM AAA CLO ETF	2.24%	5.37%	4.21%

Correlation

The correlation between NOVP and PAAA is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (All Time) Calculated using the full available price history since May 22, 2024	0.23

Return for Risk

NOVP vs. PAAA — Risk / Return Rank

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

NOVP

NOVP Risk / Return Rank: 73
NOVP Sharpe Ratio Rank: 73
NOVP Sortino Ratio Rank: 75
NOVP Omega Ratio Rank: 80
NOVP Calmar Ratio Rank: 60
NOVP Martin Ratio Rank: 77

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.

NOVP vs. PAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM S&P 500 Buffer 12 ETF - November (NOVP) 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.

	NOVP	PAAA	Difference
Sharpe ratio: Return per unit of total volatility	2.26	11.01	-8.75
Sortino ratio: Return per unit of downside risk	3.21	21.43	-18.23
Omega ratio: Gain probability vs. loss probability	1.46	6.78	-5.32
Calmar ratio: Return relative to maximum drawdown	2.92	29.61	-26.69
Martin ratio: Return relative to average drawdown	14.20	183.59	-169.39

NOVP vs. PAAA - Sharpe Ratio Comparison

The current NOVP Sharpe Ratio is 2.26, which is lower than the PAAA Sharpe Ratio of 11.01. The chart below compares the historical Sharpe Ratios of NOVP 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

NOVP vs. PAAA - Drawdown Comparison

The maximum NOVP drawdown since its inception was -11.79%, which is greater than PAAA's maximum drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for NOVP and PAAA.

Drawdown Indicators

	NOVP	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-11.79%	-1.04%	-10.75%
Max Drawdown (1Y) Largest decline over 1 year	-5.74%	-0.17%	-5.57%
Current Drawdown Current decline from peak	-0.54%	0.00%	-0.54%
Average Drawdown Average peak-to-trough decline	-1.02%	-0.02%	-1.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.18%	0.03%	+1.15%

Volatility

NOVP vs. PAAA - Volatility Comparison

PGIM S&P 500 Buffer 12 ETF - November (NOVP) has a higher volatility of 2.56% compared to PGIM AAA CLO ETF (PAAA) at 0.10%. This indicates that NOVP'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

	NOVP	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.56%	0.10%	+2.46%
Volatility (6M) Calculated over the trailing 6-month period	6.36%	0.35%	+6.01%
Volatility (1Y) Calculated over the trailing 1-year period	7.41%	0.47%	+6.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.64%	0.97%	+8.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.64%	0.97%	+8.67%

NOVP vs. PAAA - Expense Ratio Comparison

NOVP has a 0.50% expense ratio, which is higher than PAAA's 0.19% expense ratio.

Dividends

NOVP vs. PAAA - Dividend Comparison

NOVP has not paid dividends to shareholders, while PAAA's dividend yield for the trailing twelve months is around 4.87%.

Position	TTM	2025	2024	2023
NOVP PGIM S&P 500 Buffer 12 ETF - November	0.00%	0.00%	0.00%	0.00%
PAAA PGIM AAA CLO ETF	4.87%	5.12%	5.88%	2.76%

Frequently Asked Questions

Can I hold both NOVP and PAAA in my portfolio?

NOVP and PAAA have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NOVP or PAAA?

NOVP has higher volatility (2.56%) compared to PAAA (0.10%). In terms of maximum drawdown, NOVP dropped -11.79% vs PAAA's -1.04%.

Which ETF is better, NOVP or PAAA?

On 1-year performance, NOVP leads with 16.66% vs 5.13% for PAAA. On fees, PAAA is cheaper at 0.19% per year. On volatility, PAAA has been the lower-risk option at 0.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, NOVP or PAAA?

Over the 1-year period, NOVP has performed better with a 16.66% return vs 5.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, NOVP or PAAA?

PAAA is cheaper with a 0.19% expense ratio, compared with 0.50% for NOVP.

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

PAAA has the higher dividend yield at 4.87%, compared with 0.00% for NOVP.

What is the main difference between NOVP and PAAA?

NOVP is categorized as Defined Outcome, while PAAA is CLO. Their fees differ too: 0.50% for NOVP and 0.19% for PAAA.

Which has better risk-adjusted returns?

PAAA currently has the higher Sharpe Ratio (11.01 vs 2.26), 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.