PBSE vs. PAAA

Last updated Jun 4, 2026

PBSE (PGIM S&P 500 Buffer 20 ETF - September) and PAAA (PGIM AAA CLO ETF) are both exchange-traded funds - PBSE is a Defined Outcome fund actively managed by PGIM, while PAAA is a CLO fund actively managed by PGIM. Both are actively managed. Over the past year, PBSE returned 12.86% vs 5.26% for PAAA. At a 0.26 correlation, their price movements are largely independent. PBSE charges 0.50%/yr vs 0.19%/yr for PAAA.

Performance

PBSE vs. PAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM S&P 500 Buffer 20 ETF - September (PBSE) 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, PBSE achieves a 4.31% return, which is significantly higher than PAAA's 2.03% return.

PBSE

• 1D: -0.05%
• 1M: 1.42%
• YTD: 4.31%
• 6M: 5.00%
• 1Y: 12.86%
• 3Y*: —
• 5Y*: —
• 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)

PBSE vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PBSE PGIM S&P 500 Buffer 20 ETF - September	4.31%	10.97%	5.75%
PAAA PGIM AAA CLO ETF	2.03%	5.37%	4.37%

Correlation

The correlation between PBSE and PAAA is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (All Time) Calculated using the full available price history since May 16, 2024	0.26

Return for Risk

PBSE vs. PAAA — Risk / Return Rank

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

PBSE

PBSE Risk / Return Rank: 88
PBSE Sharpe Ratio Rank: 87
PBSE Sortino Ratio Rank: 91
PBSE Omega Ratio Rank: 92
PBSE Calmar Ratio Rank: 80
PBSE Martin Ratio Rank: 91

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.

PBSE vs. PAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM S&P 500 Buffer 20 ETF - September (PBSE) 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.

	PBSE	PAAA	Difference
Sharpe ratio: Return per unit of total volatility	2.86	10.83	-7.98
Sortino ratio: Return per unit of downside risk	4.26	21.80	-17.54
Omega ratio: Gain probability vs. loss probability	1.60	6.72	-5.12
Calmar ratio: Return relative to maximum drawdown	4.10	30.32	-26.22
Martin ratio: Return relative to average drawdown	21.83	187.65	-165.82
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PBSE vs. PAAA - Sharpe Ratio Comparison

The current PBSE Sharpe Ratio is 2.86, which is lower than the PAAA Sharpe Ratio of 10.83. The chart below compares the historical Sharpe Ratios of PBSE 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

	PBSE	PAAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.86	10.83	-7.98
Sharpe Ratio (All Time) Calculated using the full available price history	1.57	6.78	-5.21

Drawdowns

PBSE vs. PAAA - Drawdown Comparison

The maximum PBSE drawdown since its inception was -8.35%, which is greater than PAAA's maximum drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for PBSE and PAAA.

Drawdown Indicators

	PBSE	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-8.35%	-1.04%	-7.31%
Max Drawdown (1Y) Largest decline over 1 year	-3.15%	-0.17%	-2.98%
Current Drawdown Current decline from peak	-0.05%	-0.01%	-0.04%
Average Drawdown Average peak-to-trough decline	-0.63%	-0.02%	-0.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.59%	0.03%	+0.56%

Volatility

PBSE vs. PAAA - Volatility Comparison

PGIM S&P 500 Buffer 20 ETF - September (PBSE) has a higher volatility of 0.46% compared to PGIM AAA CLO ETF (PAAA) at 0.11%. This indicates that PBSE'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

	PBSE	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.46%	0.11%	+0.35%
Volatility (6M) Calculated over the trailing 6-month period	3.42%	0.36%	+3.06%
Volatility (1Y) Calculated over the trailing 1-year period	4.53%	0.49%	+4.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.66%	0.98%	+5.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.66%	0.98%	+5.68%

PBSE vs. PAAA - Expense Ratio Comparison

PBSE has a 0.50% expense ratio, which is higher than PAAA's 0.19% expense ratio.

Dividends

PBSE vs. PAAA - Dividend Comparison

PBSE has not paid dividends to shareholders, while PAAA's dividend yield for the trailing twelve months is around 4.88%.

Position	TTM	2025	2024	2023
PAAA PGIM AAA CLO ETF	4.88%	5.12%	5.88%	2.76%
PBSE PGIM S&P 500 Buffer 20 ETF - September	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PBSE and PAAA in my portfolio?

PBSE and PAAA have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PBSE or PAAA?

PBSE has higher volatility (0.46%) compared to PAAA (0.11%). In terms of maximum drawdown, PBSE dropped -8.35% vs PAAA's -1.04%.

Which ETF is better, PBSE or PAAA?

On 1-year performance, PBSE leads with 12.86% 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, PBSE or PAAA?

Over the 1-year period, PBSE has performed better with a 12.86% return vs 5.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PBSE or PAAA?

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

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

PAAA has the higher dividend yield at 4.88%, compared with 0.00% for PBSE.

What is the main difference between PBSE and PAAA?

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

Which has better risk-adjusted returns?

PAAA currently has the higher Sharpe Ratio (10.83 vs 2.86), 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.