PAB vs. PAAA

Last updated Jun 4, 2026

PAB (PGIM Active Aggregate Bond ETF) and PAAA (PGIM AAA CLO ETF) are both exchange-traded funds - PAB is a Intermediate Core Bond fund actively managed by PGIM, while PAAA is a CLO fund actively managed by PGIM. Both are actively managed. Over the past year, PAB returned 5.49% vs 5.26% for PAAA. At a correlation of -0.04, they often move in opposite directions. Both charge a 0.19% expense ratio.

Performance

PAB vs. PAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM Active Aggregate Bond ETF (PAB) 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, PAB achieves a 0.17% return, which is significantly lower than PAAA's 2.03% return.

PAB

• 1D: -0.20%
• 1M: 0.26%
• YTD: 0.17%
• 6M: 0.12%
• 1Y: 5.49%
• 3Y*: 4.45%
• 5Y*: 0.15%
• 10Y*: —

PAAA

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

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

PAB vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
PAB PGIM Active Aggregate Bond ETF	0.17%	7.55%	1.89%	3.38%
PAAA PGIM AAA CLO ETF	2.03%	5.37%	7.47%	3.83%

Correlation

The correlation between PAB and PAAA is 0.09, 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	0.09
Correlation (All Time) Calculated using the full available price history since Jul 27, 2023	-0.04

The correlation between PAB and PAAA shifts across timeframes, from -0.04 (all time) to 0.09 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

PAB vs. PAAA — Risk / Return Rank

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

PAB

PAB Risk / Return Rank: 40
PAB Sharpe Ratio Rank: 41
PAB Sortino Ratio Rank: 43
PAB Omega Ratio Rank: 39
PAB Calmar Ratio Rank: 39
PAB Martin Ratio Rank: 38

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

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.

PAB vs. PAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM Active Aggregate Bond ETF (PAB) 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.

	PAB	PAAA	Difference
Sharpe ratio: Return per unit of total volatility	1.42	10.83	-9.42
Sortino ratio: Return per unit of downside risk	2.14	21.80	-19.66
Omega ratio: Gain probability vs. loss probability	1.25	6.72	-5.47
Calmar ratio: Return relative to maximum drawdown	1.92	30.32	-28.40
Martin ratio: Return relative to average drawdown	5.81	187.65	-181.84
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PAB vs. PAAA - Sharpe Ratio Comparison

The current PAB Sharpe Ratio is 1.42, which is lower than the PAAA Sharpe Ratio of 10.83. The chart below compares the historical Sharpe Ratios of PAB 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.

Sharpe Ratios by Period

	PAB	PAAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.42	10.83	-9.42
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.02	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.03	6.78	-6.75

Drawdowns

PAB vs. PAAA - Drawdown Comparison

The maximum PAB drawdown since its inception was -19.27%, which is greater than PAAA's maximum drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for PAB and PAAA.

Drawdown Indicators

	PAB	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-19.27%	-1.04%	-18.23%
Max Drawdown (1Y) Largest decline over 1 year	-2.86%	-0.17%	-2.69%
Max Drawdown (3Y) Largest decline over 3 years	-5.95%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-19.27%	—	—
Current Drawdown Current decline from peak	-1.70%	-0.01%	-1.69%
Average Drawdown Average peak-to-trough decline	-7.83%	-0.02%	-7.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.95%	0.03%	+0.92%

Volatility

PAB vs. PAAA - Volatility Comparison

PGIM Active Aggregate Bond ETF (PAB) has a higher volatility of 1.35% compared to PGIM AAA CLO ETF (PAAA) at 0.11%. This indicates that PAB'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

	PAB	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.35%	0.11%	+1.24%
Volatility (6M) Calculated over the trailing 6-month period	2.79%	0.36%	+2.43%
Volatility (1Y) Calculated over the trailing 1-year period	3.89%	0.49%	+3.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.22%	0.98%	+5.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.16%	0.98%	+5.18%

PAB vs. PAAA - Expense Ratio Comparison

Both PAB and PAAA have an expense ratio of 0.19%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

PAB vs. PAAA - Dividend Comparison

PAB's dividend yield for the trailing twelve months is around 4.56%, less than PAAA's 4.88% yield.

Position	TTM	2025	2024	2023	2022	2021
PAAA PGIM AAA CLO ETF	4.88%	5.12%	5.88%	2.76%	0.00%	0.00%
PAB PGIM Active Aggregate Bond ETF	4.56%	4.28%	4.25%	3.70%	2.81%	2.34%

Frequently Asked Questions

Can I hold both PAB and PAAA in my portfolio?

PAB and PAAA have a correlation of 0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PAB or PAAA?

PAB has higher volatility (1.35%) compared to PAAA (0.11%). In terms of maximum drawdown, PAB dropped -19.27% vs PAAA's -1.04%.

Which ETF is better, PAB or PAAA?

On 1-year performance, PAB leads with 5.49% vs 5.26% for PAAA. Both ETFs have the same 0.19% expense ratio. 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, PAB or PAAA?

Over the 1-year period, PAB has performed better with a 5.49% return vs 5.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PAB or PAAA?

PAB and PAAA have the same expense ratio: 0.19% per year.

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

PAAA has the higher dividend yield at 4.88%, compared with 4.56% for PAB.

What is the main difference between PAB and PAAA?

PAB is categorized as Intermediate Core Bond, while PAAA is CLO.

Which has better risk-adjusted returns?

PAAA currently has the higher Sharpe Ratio (10.83 vs 1.42), 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.