PAAA vs. CAAA

Last updated Jun 4, 2026

PAAA (PGIM AAA CLO ETF) and CAAA (First Trust Commercial Mortgage Opportunities ETF) are both exchange-traded funds - PAAA is a CLO fund actively managed by PGIM, while CAAA is a Intermediate Core-Plus Bond fund actively managed by First Trust. Both are actively managed. Over the past year, PAAA returned 5.26% vs 5.28% for CAAA. At a 0.02 correlation, their price movements are largely independent. PAAA charges 0.19%/yr vs 0.55%/yr for CAAA.

Performance

PAAA vs. CAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM AAA CLO ETF (PAAA) and First Trust Commercial Mortgage Opportunities ETF (CAAA). 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 higher than CAAA's 0.56% return.

PAAA

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

CAAA

• 1D: -0.34%
• 1M: -0.12%
• YTD: 0.56%
• 6M: 0.55%
• 1Y: 5.28%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PAAA vs. CAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PAAA PGIM AAA CLO ETF	2.03%	5.37%	5.99%
CAAA First Trust Commercial Mortgage Opportunities ETF	0.56%	8.03%	4.65%

Correlation

The correlation between PAAA and CAAA is 0.06, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.06
Correlation (All Time) Calculated using the full available price history since Feb 29, 2024	0.02

Return for Risk

PAAA vs. CAAA — 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

CAAA

CAAA Risk / Return Rank: 51
CAAA Sharpe Ratio Rank: 50
CAAA Sortino Ratio Rank: 55
CAAA Omega Ratio Rank: 51
CAAA Calmar Ratio Rank: 52
CAAA Martin Ratio Rank: 47

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. CAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM AAA CLO ETF (PAAA) and First Trust Commercial Mortgage Opportunities ETF (CAAA). 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	CAAA	Difference
Sharpe ratio Return per unit of total volatility	10.83	1.73	+9.10
Sortino ratio Return per unit of downside risk	21.80	2.62	+19.18
Omega ratio Gain probability vs. loss probability	6.72	1.32	+5.40
Calmar ratio Return relative to maximum drawdown	30.32	2.55	+27.77
Martin ratio Return relative to average drawdown	187.65	7.88	+179.76
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. CAAA - Sharpe Ratio Comparison

The current PAAA Sharpe Ratio is 10.83, which is higher than the CAAA Sharpe Ratio of 1.73. The chart below compares the historical Sharpe Ratios of PAAA and CAAA, 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	CAAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	10.83	1.73	+9.10
Sharpe Ratio (All Time) Calculated using the full available price history	6.78	1.83	+4.95

Drawdowns

PAAA vs. CAAA - Drawdown Comparison

The maximum PAAA drawdown since its inception was -1.04%, smaller than the maximum CAAA drawdown of -2.24%. Use the drawdown chart below to compare losses from any high point for PAAA and CAAA.

Drawdown Indicators

	PAAA	CAAA	Difference
Max Drawdown Largest peak-to-trough decline	-1.04%	-2.24%	+1.20%
Max Drawdown (1Y) Largest decline over 1 year	-0.17%	-2.08%	+1.91%
Current Drawdown Current decline from peak	-0.01%	-1.04%	+1.03%
Average Drawdown Average peak-to-trough decline	-0.02%	-0.56%	+0.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.03%	0.67%	-0.64%

Volatility

PAAA vs. CAAA - Volatility Comparison

The current volatility for PGIM AAA CLO ETF (PAAA) is 0.11%, while First Trust Commercial Mortgage Opportunities ETF (CAAA) has a volatility of 1.04%. This indicates that PAAA experiences smaller price fluctuations and is considered to be less risky than CAAA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PAAA	CAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.11%	1.04%	-0.93%
Volatility (6M) Calculated over the trailing 6-month period	0.36%	2.16%	-1.80%
Volatility (1Y) Calculated over the trailing 1-year period	0.49%	3.07%	-2.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.98%	3.21%	-2.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.98%	3.21%	-2.23%

PAAA vs. CAAA - Expense Ratio Comparison

PAAA has a 0.19% expense ratio, which is lower than CAAA's 0.55% expense ratio.

Dividends

PAAA vs. CAAA - Dividend Comparison

PAAA's dividend yield for the trailing twelve months is around 4.88%, less than CAAA's 5.30% yield.

Position	TTM	2025	2024	2023
CAAA First Trust Commercial Mortgage Opportunities ETF	5.30%	6.09%	4.01%	0.00%
PAAA PGIM AAA CLO ETF	4.88%	5.12%	5.88%	2.76%

Frequently Asked Questions

Can I hold both PAAA and CAAA in my portfolio?

PAAA and CAAA have a correlation of 0.06, 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 CAAA?

CAAA has higher volatility (1.04%) compared to PAAA (0.11%). In terms of maximum drawdown, PAAA dropped -1.04% vs CAAA's -2.24%.

Which ETF is better, PAAA or CAAA?

On 1-year performance, CAAA leads with 5.28% 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 CAAA?

Over the 1-year period, CAAA has performed better with a 5.28% 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 CAAA?

PAAA is cheaper with a 0.19% expense ratio, compared with 0.55% for CAAA.

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

CAAA has the higher dividend yield at 5.30%, compared with 4.88% for PAAA.

What is the main difference between PAAA and CAAA?

PAAA is categorized as CLO, while CAAA is Intermediate Core-Plus Bond. They also come from different issuers: PGIM and First Trust. Their fees differ too: 0.19% for PAAA and 0.55% for CAAA.

Which has better risk-adjusted returns?

PAAA currently has the higher Sharpe Ratio (10.83 vs 1.73), 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.