PMIO vs. PAAA

Last updated Jun 5, 2026

PMIO (PGIM Municipal Income Opportunities ETF) and PAAA (PGIM AAA CLO ETF) are both exchange-traded funds - PMIO is a Municipal Bonds fund actively managed by PGIM, while PAAA is a CLO fund actively managed by PGIM. Both are actively managed. Over the past year, PMIO returned 6.54% vs 5.22% for PAAA. At a correlation of -0.03, they often move in opposite directions. PMIO charges 0.25%/yr vs 0.19%/yr for PAAA.

Performance

PMIO vs. PAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM Municipal Income Opportunities ETF (PMIO) 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, PMIO achieves a 1.63% return, which is significantly lower than PAAA's 2.02% return.

PMIO

• 1D: 0.09%
• 1M: 0.85%
• YTD: 1.63%
• 6M: 1.99%
• 1Y: 6.54%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PAAA

• 1D: -0.01%
• 1M: 0.38%
• YTD: 2.02%
• 6M: 2.44%
• 1Y: 5.22%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PMIO vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PMIO PGIM Municipal Income Opportunities ETF	1.63%	5.30%	2.41%
PAAA PGIM AAA CLO ETF	2.02%	5.37%	3.39%

Correlation

The correlation between PMIO and PAAA is 0.04, 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	0.04
Correlation (All Time) Calculated using the full available price history since Jul 1, 2024	-0.03

Return for Risk

PMIO vs. PAAA — Risk / Return Rank

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

PMIO

PMIO Risk / Return Rank: 78
PMIO Sharpe Ratio Rank: 89
PMIO Sortino Ratio Rank: 92
PMIO Omega Ratio Rank: 94
PMIO Calmar Ratio Rank: 60
PMIO Martin Ratio Rank: 57

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.

PMIO vs. PAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM Municipal Income Opportunities ETF (PMIO) 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.

	PMIO	PAAA	Difference
Sharpe ratio: Return per unit of total volatility	2.95	10.75	-7.80
Sortino ratio: Return per unit of downside risk	4.39	21.66	-17.28
Omega ratio: Gain probability vs. loss probability	1.67	6.63	-4.96
Calmar ratio: Return relative to maximum drawdown	2.93	30.14	-27.21
Martin ratio: Return relative to average drawdown	9.76	186.37	-176.61
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PMIO vs. PAAA - Sharpe Ratio Comparison

The current PMIO Sharpe Ratio is 2.95, which is lower than the PAAA Sharpe Ratio of 10.75. The chart below compares the historical Sharpe Ratios of PMIO 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

	PMIO	PAAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.95	10.75	-7.80
Sharpe Ratio (All Time) Calculated using the full available price history	1.59	6.77	-5.19

Drawdowns

PMIO vs. PAAA - Drawdown Comparison

The maximum PMIO drawdown since its inception was -3.39%, which is greater than PAAA's maximum drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for PMIO and PAAA.

Drawdown Indicators

	PMIO	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-3.39%	-1.04%	-2.35%
Max Drawdown (1Y) Largest decline over 1 year	-2.24%	-0.17%	-2.07%
Current Drawdown Current decline from peak	-0.39%	-0.02%	-0.37%
Average Drawdown Average peak-to-trough decline	-0.66%	-0.02%	-0.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.67%	0.03%	+0.64%

Volatility

PMIO vs. PAAA - Volatility Comparison

PGIM Municipal Income Opportunities ETF (PMIO) has a higher volatility of 0.73% compared to PGIM AAA CLO ETF (PAAA) at 0.11%. This indicates that PMIO'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

	PMIO	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.73%	0.11%	+0.62%
Volatility (6M) Calculated over the trailing 6-month period	1.58%	0.36%	+1.22%
Volatility (1Y) Calculated over the trailing 1-year period	2.25%	0.49%	+1.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.08%	0.98%	+2.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.08%	0.98%	+2.10%

PMIO vs. PAAA - Expense Ratio Comparison

PMIO has a 0.25% expense ratio, which is higher than PAAA's 0.19% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

PMIO vs. PAAA - Dividend Comparison

PMIO's dividend yield for the trailing twelve months is around 3.92%, less than PAAA's 4.88% yield.

Position	TTM	2025	2024	2023
PAAA PGIM AAA CLO ETF	4.88%	5.12%	5.88%	2.76%
PMIO PGIM Municipal Income Opportunities ETF	3.92%	4.00%	2.11%	0.00%

Frequently Asked Questions

Can I hold both PMIO and PAAA in my portfolio?

PMIO and PAAA have a correlation of 0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PMIO or PAAA?

PMIO has higher volatility (0.73%) compared to PAAA (0.11%). In terms of maximum drawdown, PMIO dropped -3.39% vs PAAA's -1.04%.

Which ETF is better, PMIO or PAAA?

On 1-year performance, PMIO leads with 6.54% vs 5.22% 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, PMIO or PAAA?

Over the 1-year period, PMIO has performed better with a 6.54% return vs 5.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PMIO or PAAA?

PAAA is cheaper with a 0.19% expense ratio, compared with 0.25% for PMIO.

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

PAAA has the higher dividend yield at 4.88%, compared with 3.92% for PMIO.

What is the main difference between PMIO and PAAA?

PMIO is categorized as Municipal Bonds, while PAAA is CLO. Their fees differ too: 0.25% for PMIO and 0.19% for PAAA.

Which has better risk-adjusted returns?

PAAA currently has the higher Sharpe Ratio (10.75 vs 2.95), 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.