PCLO vs. AAA

Last updated Jun 4, 2026

PCLO (Virtus SEIX AAA Private Credit CLO ETF) and AAA (AAF First Priority CLO Bond ETF) are both CLO funds. Both are actively managed. Over the past year, PCLO returned 5.30% vs 5.39% for AAA. At a 0.05 correlation, their price movements are largely independent. PCLO charges 0.29%/yr vs 0.25%/yr for AAA.

Performance

PCLO vs. AAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Virtus SEIX AAA Private Credit CLO ETF (PCLO) and AAF First Priority CLO Bond ETF (AAA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PCLO achieves a 1.97% return, which is significantly higher than AAA's 1.86% return.

PCLO

• 1D: 0.08%
• 1M: 0.42%
• YTD: 1.97%
• 6M: 2.29%
• 1Y: 5.30%
• 3Y*: —
• 5Y*: —
• 10Y*: —

AAA

• 1D: -0.22%
• 1M: 0.67%
• YTD: 1.86%
• 6M: 2.19%
• 1Y: 5.39%
• 3Y*: 6.50%
• 5Y*: 4.64%
• 10Y*: —

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

PCLO vs. AAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PCLO Virtus SEIX AAA Private Credit CLO ETF	1.97%	5.39%	0.50%
AAA AAF First Priority CLO Bond ETF	1.86%	4.92%	0.39%

Correlation

The correlation between PCLO and AAA 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 Dec 4, 2024	0.05

Return for Risk

PCLO vs. AAA — Risk / Return Rank

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

PCLO

PCLO Risk / Return Rank: 99
PCLO Sharpe Ratio Rank: 98
PCLO Sortino Ratio Rank: 99
PCLO Omega Ratio Rank: 99
PCLO Calmar Ratio Rank: 99
PCLO Martin Ratio Rank: 99

AAA

AAA Risk / Return Rank: 85
AAA Sharpe Ratio Rank: 71
AAA Sortino Ratio Rank: 87
AAA Omega Ratio Rank: 77
AAA Calmar Ratio Rank: 96
AAA Martin Ratio Rank: 94

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.

PCLO vs. AAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Virtus SEIX AAA Private Credit CLO ETF (PCLO) and AAF First Priority CLO Bond ETF (AAA). 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.

	PCLO	AAA	Difference
Sharpe ratio: Return per unit of total volatility	5.94	2.36	+3.58
Sortino ratio: Return per unit of downside risk	10.34	4.06	+6.28
Omega ratio: Gain probability vs. loss probability	2.76	1.47	+1.30
Calmar ratio: Return relative to maximum drawdown	20.27	8.98	+11.29
Martin ratio: Return relative to average drawdown	123.68	27.78	+95.91
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PCLO vs. AAA - Sharpe Ratio Comparison

The current PCLO Sharpe Ratio is 5.94, which is higher than the AAA Sharpe Ratio of 2.36. The chart below compares the historical Sharpe Ratios of PCLO and AAA, 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

	PCLO	AAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	5.94	2.36	+3.58
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	2.05	—
Sharpe Ratio (All Time) Calculated using the full available price history	4.62	1.93	+2.69

Drawdowns

PCLO vs. AAA - Drawdown Comparison

The maximum PCLO drawdown since its inception was -0.76%, smaller than the maximum AAA drawdown of -2.63%. Use the drawdown chart below to compare losses from any high point for PCLO and AAA.

Drawdown Indicators

	PCLO	AAA	Difference
Max Drawdown Largest peak-to-trough decline	-0.76%	-2.63%	+1.87%
Max Drawdown (1Y) Largest decline over 1 year	-0.26%	-0.60%	+0.34%
Max Drawdown (3Y) Largest decline over 3 years	—	-2.40%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-2.63%	—
Current Drawdown Current decline from peak	0.00%	-0.22%	+0.22%
Average Drawdown Average peak-to-trough decline	-0.03%	-0.30%	+0.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.04%	0.19%	-0.15%

Volatility

PCLO vs. AAA - Volatility Comparison

The current volatility for Virtus SEIX AAA Private Credit CLO ETF (PCLO) is 0.25%, while AAF First Priority CLO Bond ETF (AAA) has a volatility of 0.74%. This indicates that PCLO experiences smaller price fluctuations and is considered to be less risky than AAA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PCLO	AAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.25%	0.74%	-0.49%
Volatility (6M) Calculated over the trailing 6-month period	0.70%	1.76%	-1.06%
Volatility (1Y) Calculated over the trailing 1-year period	0.90%	2.30%	-1.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.15%	2.28%	-1.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.15%	2.15%	-1.00%

PCLO vs. AAA - Expense Ratio Comparison

PCLO has a 0.29% expense ratio, which is higher than AAA's 0.25% expense ratio.

Dividends

PCLO vs. AAA - Dividend Comparison

PCLO's dividend yield for the trailing twelve months is around 5.27%, more than AAA's 4.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
AAA AAF First Priority CLO Bond ETF	4.90%	5.11%	6.17%	6.11%	2.78%	1.06%	0.32%
PCLO Virtus SEIX AAA Private Credit CLO ETF	5.27%	5.53%	0.44%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PCLO and AAA in my portfolio?

PCLO and AAA 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, PCLO or AAA?

AAA has higher volatility (0.74%) compared to PCLO (0.25%). In terms of maximum drawdown, PCLO dropped -0.76% vs AAA's -2.63%.

Which ETF is better, PCLO or AAA?

On 1-year performance, AAA leads with 5.39% vs 5.30% for PCLO. On fees, AAA is cheaper at 0.25% per year. On volatility, PCLO has been the lower-risk option at 0.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PCLO or AAA?

Over the 1-year period, AAA has performed better with a 5.39% return vs 5.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PCLO or AAA?

AAA is cheaper with a 0.25% expense ratio, compared with 0.29% for PCLO.

Which ETF pays a higher dividend yield, PCLO or AAA?

PCLO has the higher dividend yield at 5.27%, compared with 4.90% for AAA.

What is the main difference between PCLO and AAA?

They also come from different issuers: Virtus and Alternative Access Funds LLC. Their fees differ too: 0.29% for PCLO and 0.25% for AAA.

Which has better risk-adjusted returns?

PCLO currently has the higher Sharpe Ratio (5.94 vs 2.36), 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.