PAAA vs. MMKT

Last updated Jul 21, 2026

PAAA (PGIM AAA CLO ETF) and MMKT (Texas Capital Government Money Market ETF) are both exchange-traded funds - PAAA is a CLO fund actively managed by PGIM, while MMKT is a Money Market fund actively managed by Texas Capital. Both are actively managed. Over the past year, PAAA returned 5.05% vs 3.74% for MMKT. At a 0.04 correlation, their price movements are largely independent. PAAA charges 0.19%/yr vs 0.20%/yr for MMKT.

Performance

PAAA vs. MMKT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM AAA CLO ETF (PAAA) and Texas Capital Government Money Market ETF (MMKT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PAAA achieves a 2.61% return, which is significantly higher than MMKT's 1.89% return.

PAAA

• 1D: 0.02%
• 1M: 0.38%
• 6M: 2.25%
• YTD: 2.61%
• 1Y: 5.05%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 6.49%

MMKT

• 1D: 0.01%
• 1M: 0.27%
• 6M: 1.73%
• YTD: 1.89%
• 1Y: 3.74%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 4.01%

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

PAAA vs. MMKT - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PAAA PGIM AAA CLO ETF	2.61%	5.37%	1.83%
MMKT Texas Capital Government Money Market ETF	1.89%	4.13%	1.22%

Correlation

The correlation between PAAA and MMKT is 0.03, 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	0.03
Correlation (All Time) Calculated using the full available price history since Sep 25, 2024	0.04

Return for Risk

PAAA vs. MMKT — 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: 100
PAAA Sortino Ratio Rank: 99
PAAA Omega Ratio Rank: 99
PAAA Calmar Ratio Rank: 99
PAAA Martin Ratio Rank: 99

MMKT

MMKT Risk / Return Rank: 100
MMKT Sharpe Ratio Rank: 100
MMKT Sortino Ratio Rank: 100
MMKT Omega Ratio Rank: 100
MMKT Calmar Ratio Rank: 100
MMKT Martin Ratio Rank: 100

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. MMKT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM AAA CLO ETF (PAAA) and Texas Capital Government Money Market ETF (MMKT). 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	MMKT	Difference
Sharpe ratio: Return per unit of total volatility	10.85	16.79	-5.94
Sortino ratio: Return per unit of downside risk	21.12	62.64	-41.52
Omega ratio: Gain probability vs. loss probability	6.63	16.03	-9.40
Calmar ratio: Return relative to maximum drawdown	29.14	150.42	-121.29
Martin ratio: Return relative to average drawdown	180.54	907.31	-726.77

PAAA vs. MMKT - Sharpe Ratio Comparison

The current PAAA Sharpe Ratio is 10.85, which is lower than the MMKT Sharpe Ratio of 16.79. The chart below compares the historical Sharpe Ratios of PAAA and MMKT, 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

PAAA vs. MMKT - Drawdown Comparison

The maximum PAAA drawdown since its inception was -1.04%, which is greater than MMKT's maximum drawdown of -0.04%. Use the drawdown chart below to compare losses from any high point for PAAA and MMKT.

Drawdown Indicators

	PAAA	MMKT	Difference
Max Drawdown Largest peak-to-trough decline	-1.04%	-0.04%	-1.00%
Max Drawdown (1Y) Largest decline over 1 year	-0.17%	-0.02%	-0.15%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.02%	-0.00%	-0.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.03%	0.00%	+0.03%

Volatility

PAAA vs. MMKT - Volatility Comparison

PGIM AAA CLO ETF (PAAA) has a higher volatility of 0.10% compared to Texas Capital Government Money Market ETF (MMKT) at 0.05%. This indicates that PAAA's price experiences larger fluctuations and is considered to be riskier than MMKT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PAAA	MMKT	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.10%	0.05%	+0.05%
Volatility (6M) Calculated over the trailing 6-month period	0.36%	0.13%	+0.23%
Volatility (1Y) Calculated over the trailing 1-year period	0.47%	0.22%	+0.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.96%	0.23%	+0.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.96%	0.23%	+0.73%

PAAA vs. MMKT - Expense Ratio Comparison

PAAA has a 0.19% expense ratio, which is lower than MMKT's 0.20% expense ratio. Despite the difference, 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. MMKT - Dividend Comparison

PAAA's dividend yield for the trailing twelve months is around 4.83%, more than MMKT's 3.67% yield.

Position	TTM	2025	2024	2023
MMKT Texas Capital Government Money Market ETF	3.67%	3.98%	1.07%	0.00%
PAAA PGIM AAA CLO ETF	4.83%	5.12%	5.88%	2.76%

Frequently Asked Questions

Can I hold both PAAA and MMKT in my portfolio?

PAAA and MMKT have a correlation of 0.03, 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 MMKT?

PAAA has higher volatility (0.10%) compared to MMKT (0.05%). In terms of maximum drawdown, PAAA dropped -1.04% vs MMKT's -0.04%.

Which ETF is better, PAAA or MMKT?

On 1-year performance, PAAA leads with 5.05% vs 3.74% for MMKT. On fees, PAAA is cheaper at 0.19% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PAAA or MMKT?

Over the 1-year period, PAAA has performed better with a 5.05% return vs 3.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PAAA or MMKT?

PAAA is cheaper with a 0.19% expense ratio, compared with 0.20% for MMKT.

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

PAAA has the higher dividend yield at 4.83%, compared with 3.67% for MMKT.

What is the main difference between PAAA and MMKT?

PAAA is categorized as CLO, while MMKT is Money Market. They also come from different issuers: PGIM and Texas Capital. Their fees differ too: 0.19% for PAAA and 0.20% for MMKT.

Which has better risk-adjusted returns?

MMKT currently has the higher Sharpe Ratio (16.79 vs 10.85), 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.