PAAA vs. BUFP

Last updated Jun 4, 2026

PAAA (PGIM AAA CLO ETF) and BUFP (PGIM Laddered S&P 500 Buffer 12 ETF) are both exchange-traded funds - PAAA is a CLO fund actively managed by PGIM, while BUFP is a Defined Outcome fund tracking the S&P 500. PAAA is actively managed, while BUFP is passively managed. Over the past year, PAAA returned 5.26% vs 17.24% for BUFP. At a 0.22 correlation, their price movements are largely independent. PAAA charges 0.19%/yr vs 0.50%/yr for BUFP.

Performance

PAAA vs. BUFP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM AAA CLO ETF (PAAA) and PGIM Laddered S&P 500 Buffer 12 ETF (BUFP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PAAA achieves a 2.03% return, which is significantly lower than BUFP's 6.23% return.

PAAA

• 1D: -0.01%
• 1M: 0.40%
• YTD: 2.03%
• 6M: 2.45%
• 1Y: 5.26%
• 3Y*: —
• 5Y*: —
• 10Y*: —

BUFP

• 1D: -0.22%
• 1M: 2.04%
• YTD: 6.23%
• 6M: 7.00%
• 1Y: 17.24%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PAAA vs. BUFP - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PAAA PGIM AAA CLO ETF	2.03%	5.37%	3.66%
BUFP PGIM Laddered S&P 500 Buffer 12 ETF	6.23%	12.92%	6.36%

Correlation

The correlation between PAAA and BUFP is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.29
Correlation (All Time) Calculated using the full available price history since Jun 14, 2024	0.22

Return for Risk

PAAA vs. BUFP — Risk / Return Rank

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

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

BUFP

BUFP Risk / Return Rank: 86
BUFP Sharpe Ratio Rank: 84
BUFP Sortino Ratio Rank: 89
BUFP Omega Ratio Rank: 89
BUFP Calmar Ratio Rank: 77
BUFP Martin Ratio Rank: 91

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.

PAAA vs. BUFP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM AAA CLO ETF (PAAA) and PGIM Laddered S&P 500 Buffer 12 ETF (BUFP). 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.

	PAAA	BUFP	Difference
Sharpe ratio Return per unit of total volatility	10.83	2.77	+8.07
Sortino ratio Return per unit of downside risk	21.80	4.12	+17.68
Omega ratio Gain probability vs. loss probability	6.72	1.58	+5.15
Calmar ratio Return relative to maximum drawdown	30.32	3.93	+26.39
Martin ratio Return relative to average drawdown	187.65	21.96	+165.68
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PAAA vs. BUFP - Sharpe Ratio Comparison

The current PAAA Sharpe Ratio is 10.83, which is higher than the BUFP Sharpe Ratio of 2.77. The chart below compares the historical Sharpe Ratios of PAAA and BUFP, 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

	PAAA	BUFP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	10.83	2.77	+8.07
Sharpe Ratio (All Time) Calculated using the full available price history	6.78	1.40	+5.38

Drawdowns

PAAA vs. BUFP - Drawdown Comparison

The maximum PAAA drawdown since its inception was -1.04%, smaller than the maximum BUFP drawdown of -11.98%. Use the drawdown chart below to compare losses from any high point for PAAA and BUFP.

Drawdown Indicators

	PAAA	BUFP	Difference
Max Drawdown Largest peak-to-trough decline	-1.04%	-11.98%	+10.94%
Max Drawdown (1Y) Largest decline over 1 year	-0.17%	-4.41%	+4.24%
Current Drawdown Current decline from peak	-0.01%	-0.22%	+0.21%
Average Drawdown Average peak-to-trough decline	-0.02%	-1.00%	+0.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.03%	0.79%	-0.76%

Volatility

PAAA vs. BUFP - Volatility Comparison

The current volatility for PGIM AAA CLO ETF (PAAA) is 0.11%, while PGIM Laddered S&P 500 Buffer 12 ETF (BUFP) has a volatility of 0.95%. This indicates that PAAA experiences smaller price fluctuations and is considered to be less risky than BUFP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PAAA	BUFP	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.11%	0.95%	-0.84%
Volatility (6M) Calculated over the trailing 6-month period	0.36%	4.82%	-4.46%
Volatility (1Y) Calculated over the trailing 1-year period	0.49%	6.27%	-5.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.98%	9.49%	-8.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.98%	9.49%	-8.51%

PAAA vs. BUFP - Expense Ratio Comparison

PAAA has a 0.19% expense ratio, which is lower than BUFP's 0.50% expense ratio.

Dividends

PAAA vs. BUFP - Dividend Comparison

PAAA's dividend yield for the trailing twelve months is around 4.88%, more than BUFP's 0.01% yield.

Position	TTM	2025	2024	2023
BUFP PGIM Laddered S&P 500 Buffer 12 ETF	0.01%	0.01%	0.02%	0.00%
PAAA PGIM AAA CLO ETF	4.88%	5.12%	5.88%	2.76%

Frequently Asked Questions

Can I hold both PAAA and BUFP in my portfolio?

PAAA and BUFP have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PAAA or BUFP?

BUFP has higher volatility (0.95%) compared to PAAA (0.11%). In terms of maximum drawdown, PAAA dropped -1.04% vs BUFP's -11.98%.

Which ETF is better, PAAA or BUFP?

On 1-year performance, BUFP leads with 17.24% vs 5.26% 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, PAAA or BUFP?

Over the 1-year period, BUFP has performed better with a 17.24% return vs 5.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PAAA or BUFP?

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

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

PAAA has the higher dividend yield at 4.88%, compared with 0.01% for BUFP.

What is the main difference between PAAA and BUFP?

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

Which has better risk-adjusted returns?

PAAA currently has the higher Sharpe Ratio (10.83 vs 2.77), 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.