PAAA vs. IEFA
PAAA (PGIM AAA CLO ETF) and IEFA (iShares Core MSCI EAFE ETF) are both exchange-traded funds - PAAA is a CLO fund actively managed by PGIM, while IEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE IMI Index (Net). PAAA is actively managed, while IEFA is passively managed. Over the past year, PAAA returned 5.14% vs 20.89% for IEFA. At a 0.12 correlation, their price movements are largely independent. PAAA charges 0.19%/yr vs 0.07%/yr for IEFA.
Performance
PAAA vs. IEFA - Performance Comparison
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Returns By Period
In the year-to-date period, PAAA achieves a 2.14% return, which is significantly lower than IEFA's 9.51% return.
PAAA
- 1D
- 0.00%
- 1M
- 0.36%
- YTD
- 2.14%
- 6M
- 2.42%
- 1Y
- 5.14%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
IEFA
- 1D
- 0.18%
- 1M
- 0.85%
- YTD
- 9.51%
- 6M
- 11.08%
- 1Y
- 20.89%
- 3Y*
- 16.31%
- 5Y*
- 8.10%
- 10Y*
- 9.90%
PAAA vs. IEFA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
PAAA PGIM AAA CLO ETF | 2.14% | 5.37% | 7.47% | 3.83% |
IEFA iShares Core MSCI EAFE ETF | 9.51% | 32.08% | 3.26% | 3.26% |
Correlation
The correlation between PAAA and IEFA is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.23 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2023 | 0.12 |
The correlation between PAAA and IEFA shifts across timeframes, from 0.12 (all time) to 0.23 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
PAAA vs. IEFA — Risk / Return Rank
PAAA
IEFA
PAAA vs. IEFA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for PGIM AAA CLO ETF (PAAA) and iShares Core MSCI EAFE ETF (IEFA). 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.
| PAAA | IEFA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +9.59 | ||
| Sortino ratioReturn per unit of downside risk | +19.43 | ||
| Omega ratioGain probability vs. loss probability | 6.66 | 1.25 | +5.42 |
| Calmar ratioReturn relative to maximum drawdown | 29.67 | 1.83 | +27.84 |
| Martin ratioReturn relative to average drawdown | 183.78 | 6.93 | +176.85 |
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Drawdowns
PAAA vs. IEFA - Drawdown Comparison
The maximum PAAA drawdown since its inception was -1.04%, smaller than the maximum IEFA drawdown of -34.78%. Use the drawdown chart below to compare losses from any high point for PAAA and IEFA.
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Drawdown Indicators
| PAAA | IEFA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -1.04% | -34.78% | +33.74% |
Max Drawdown (1Y)Largest decline over 1 year | -0.17% | -11.50% | +11.33% |
Max Drawdown (3Y)Largest decline over 3 years | — | -13.76% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -30.41% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -34.78% | — |
Current DrawdownCurrent decline from peak | 0.00% | -0.60% | +0.60% |
Average DrawdownAverage peak-to-trough decline | -0.02% | -6.68% | +6.66% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.03% | 3.03% | -3.00% |
Volatility
PAAA vs. IEFA - Volatility Comparison
The current volatility for PGIM AAA CLO ETF (PAAA) is 0.11%, while iShares Core MSCI EAFE ETF (IEFA) has a volatility of 5.50%. This indicates that PAAA experiences smaller price fluctuations and is considered to be less risky than IEFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| PAAA | IEFA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.11% | 5.50% | -5.39% |
Volatility (6M)Calculated over the trailing 6-month period | 0.35% | 13.11% | -12.76% |
Volatility (1Y)Calculated over the trailing 1-year period | 0.47% | 15.54% | -15.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 0.97% | 16.61% | -15.64% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 0.97% | 17.31% | -16.34% |
PAAA vs. IEFA - Expense Ratio Comparison
PAAA has a 0.19% expense ratio, which is higher than IEFA's 0.07% 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
PAAA vs. IEFA - Dividend Comparison
PAAA's dividend yield for the trailing twelve months is around 4.88%, more than IEFA's 3.24% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEFA iShares Core MSCI EAFE ETF | 3.24% | 3.55% | 3.47% | 3.20% | 2.70% | 3.32% | 1.90% | 3.18% | 3.46% | 2.57% | 2.96% | 2.63% |
PAAA PGIM AAA CLO ETF | 4.88% | 5.12% | 5.88% | 2.76% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
PAAA and IEFA have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IEFA has higher volatility (5.50%) compared to PAAA (0.11%). In terms of maximum drawdown, PAAA dropped -1.04% vs IEFA's -34.78%.
On 1-year performance, IEFA leads with 20.89% vs 5.14% for PAAA. On fees, IEFA is cheaper at 0.07% 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.
Over the 1-year period, IEFA has performed better with a 20.89% return vs 5.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IEFA is cheaper with a 0.07% expense ratio, compared with 0.19% for PAAA.
PAAA has the higher dividend yield at 4.88%, compared with 3.24% for IEFA.
PAAA is categorized as CLO, while IEFA is Foreign Large Cap Equities. They also come from different issuers: PGIM and iShares. Their fees differ too: 0.19% for PAAA and 0.07% for IEFA.
PAAA currently has the higher Sharpe Ratio (10.94 vs 1.35), 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.
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