PCLO vs. PAAA

Last updated Jun 23, 2026

PCLO (Virtus SEIX AAA Private Credit CLO ETF) and PAAA (PGIM AAA CLO ETF) are both CLO funds. Both are actively managed. Over the past year, PCLO returned 5.22% vs 5.13% for PAAA. At a 0.18 correlation, their price movements are largely independent. PCLO charges 0.29%/yr vs 0.19%/yr for PAAA.

Performance

PCLO vs. PAAA - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with PCLO having a 2.15% return and PAAA slightly higher at 2.24%.

PCLO

• 1D: -0.02%
• 1M: 0.28%
• YTD: 2.15%
• 6M: 2.33%
• 1Y: 5.22%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PAAA

• 1D: 0.02%
• 1M: 0.26%
• YTD: 2.24%
• 6M: 2.39%
• 1Y: 5.13%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PCLO vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PCLO Virtus SEIX AAA Private Credit CLO ETF	2.15%	5.39%	0.46%
PAAA PGIM AAA CLO ETF	2.24%	5.37%	0.51%

Correlation

The correlation between PCLO and PAAA is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.13
Correlation (All Time) Calculated using the full available price history since Dec 3, 2024	0.18

Return for Risk

PCLO vs. PAAA — 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

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

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. PAAA - Risk-Adjusted Trends Comparison

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

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.

	PCLO	PAAA	Difference
Sharpe ratio: Return per unit of total volatility	5.81	11.01	-5.20
Sortino ratio: Return per unit of downside risk	10.10	21.43	-11.33
Omega ratio: Gain probability vs. loss probability	2.70	6.78	-4.08
Calmar ratio: Return relative to maximum drawdown	19.95	29.61	-9.65
Martin ratio: Return relative to average drawdown	117.16	183.59	-66.43

PCLO vs. PAAA - Sharpe Ratio Comparison

The current PCLO Sharpe Ratio is 5.81, which is lower than the PAAA Sharpe Ratio of 11.01. The chart below compares the historical Sharpe Ratios of PCLO 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.

Drawdowns

PCLO vs. PAAA - Drawdown Comparison

The maximum PCLO drawdown since its inception was -0.76%, smaller than the maximum PAAA drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for PCLO and PAAA.

Drawdown Indicators

	PCLO	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-0.76%	-1.04%	+0.28%
Max Drawdown (1Y) Largest decline over 1 year	-0.26%	-0.17%	-0.09%
Current Drawdown Current decline from peak	-0.02%	0.00%	-0.02%
Average Drawdown Average peak-to-trough decline	-0.03%	-0.02%	-0.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.04%	0.03%	+0.01%

Volatility

PCLO vs. PAAA - Volatility Comparison

Virtus SEIX AAA Private Credit CLO ETF (PCLO) has a higher volatility of 0.26% compared to PGIM AAA CLO ETF (PAAA) at 0.10%. This indicates that PCLO'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

	PCLO	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.26%	0.10%	+0.16%
Volatility (6M) Calculated over the trailing 6-month period	0.70%	0.35%	+0.35%
Volatility (1Y) Calculated over the trailing 1-year period	0.90%	0.47%	+0.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.14%	0.97%	+0.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.14%	0.97%	+0.17%

PCLO vs. PAAA - Expense Ratio Comparison

PCLO has a 0.29% expense ratio, which is higher than PAAA's 0.19% expense ratio.

Dividends

PCLO vs. PAAA - Dividend Comparison

PCLO's dividend yield for the trailing twelve months is around 5.24%, more than PAAA's 4.87% yield.

Position	TTM	2025	2024	2023
PAAA PGIM AAA CLO ETF	4.87%	5.12%	5.88%	2.76%
PCLO Virtus SEIX AAA Private Credit CLO ETF	5.24%	5.53%	0.44%	0.00%

Frequently Asked Questions

Can I hold both PCLO and PAAA in my portfolio?

PCLO and PAAA have a correlation of 0.13, 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 PAAA?

PCLO has higher volatility (0.26%) compared to PAAA (0.10%). In terms of maximum drawdown, PCLO dropped -0.76% vs PAAA's -1.04%.

Which ETF is better, PCLO or PAAA?

On 1-year performance, PCLO leads with 5.22% vs 5.13% for PAAA. On fees, PAAA is cheaper at 0.19% per year. On volatility, PAAA has been the lower-risk option at 0.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PCLO or PAAA?

Over the 1-year period, PCLO has performed better with a 5.22% return vs 5.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PCLO or PAAA?

PAAA is cheaper with a 0.19% expense ratio, compared with 0.29% for PCLO.

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

PCLO has the higher dividend yield at 5.24%, compared with 4.87% for PAAA.

What is the main difference between PCLO and PAAA?

They also come from different issuers: Virtus and PGIM. Their fees differ too: 0.29% for PCLO and 0.19% for PAAA.

Which has better risk-adjusted returns?

PAAA currently has the higher Sharpe Ratio (11.01 vs 5.81), 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.