PMMF vs. CLOA

Last updated Jun 23, 2026

PMMF (iShares Prime Money Market ETF) and CLOA (iShares AAA CLO Active ETF) are both exchange-traded funds - PMMF is a Money Market fund actively managed by BlackRock, while CLOA is a CLO fund actively managed by BlackRock. Both are actively managed. Over the past year, PMMF returned 3.97% vs 5.23% for CLOA. At a 0.19 correlation, their price movements are largely independent. Both charge a 0.20% expense ratio.

Performance

PMMF vs. CLOA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Prime Money Market ETF (PMMF) and iShares AAA CLO Active ETF (CLOA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PMMF achieves a 1.70% return, which is significantly lower than CLOA's 2.27% return.

PMMF

• 1D: 0.02%
• 1M: 0.26%
• YTD: 1.70%
• 6M: 1.80%
• 1Y: 3.97%
• 3Y*: —
• 5Y*: —
• 10Y*: —

CLOA

• 1D: 0.09%
• 1M: 0.26%
• YTD: 2.27%
• 6M: 2.47%
• 1Y: 5.23%
• 3Y*: 6.62%
• 5Y*: —
• 10Y*: —

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

PMMF vs. CLOA - Yearly Performance Comparison

	2026 (YTD)	2025
PMMF iShares Prime Money Market ETF	1.70%	3.75%
CLOA iShares AAA CLO Active ETF	2.27%	4.78%

Correlation

The correlation between PMMF and CLOA is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.20
Correlation (All Time) Calculated using the full available price history since Feb 6, 2025	0.19

Return for Risk

PMMF vs. CLOA — Risk / Return Rank

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

PMMF

PMMF Risk / Return Rank: 100
PMMF Sharpe Ratio Rank: 100
PMMF Sortino Ratio Rank: 100
PMMF Omega Ratio Rank: 100
PMMF Calmar Ratio Rank: 100
PMMF Martin Ratio Rank: 100

CLOA

CLOA Risk / Return Rank: 99
CLOA Sharpe Ratio Rank: 99
CLOA Sortino Ratio Rank: 99
CLOA Omega Ratio Rank: 99
CLOA Calmar Ratio Rank: 99
CLOA 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.

PMMF vs. CLOA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Prime Money Market ETF (PMMF) and iShares AAA CLO Active ETF (CLOA). 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.

	PMMF	CLOA	Difference
Sharpe ratio: Return per unit of total volatility	19.46	7.58	+11.88
Sortino ratio: Return per unit of downside risk	91.93	14.27	+77.66
Omega ratio: Gain probability vs. loss probability	34.90	3.43	+31.47
Calmar ratio: Return relative to maximum drawdown	160.07	29.72	+130.35
Martin ratio: Return relative to average drawdown	1,439.37	151.56	+1,287.81

PMMF vs. CLOA - Sharpe Ratio Comparison

The current PMMF Sharpe Ratio is 19.46, which is higher than the CLOA Sharpe Ratio of 7.58. The chart below compares the historical Sharpe Ratios of PMMF and CLOA, 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

PMMF vs. CLOA - Drawdown Comparison

The maximum PMMF drawdown since its inception was -0.13%, smaller than the maximum CLOA drawdown of -1.34%. Use the drawdown chart below to compare losses from any high point for PMMF and CLOA.

Drawdown Indicators

	PMMF	CLOA	Difference
Max Drawdown Largest peak-to-trough decline	-0.13%	-1.34%	+1.21%
Max Drawdown (1Y) Largest decline over 1 year	-0.02%	-0.18%	+0.16%
Max Drawdown (3Y) Largest decline over 3 years	—	-1.13%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.00%	-0.05%	+0.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.00%	0.03%	-0.03%

Volatility

PMMF vs. CLOA - Volatility Comparison

The current volatility for iShares Prime Money Market ETF (PMMF) is 0.06%, while iShares AAA CLO Active ETF (CLOA) has a volatility of 0.15%. This indicates that PMMF experiences smaller price fluctuations and is considered to be less risky than CLOA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PMMF	CLOA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.06%	0.15%	-0.09%
Volatility (6M) Calculated over the trailing 6-month period	0.13%	0.49%	-0.36%
Volatility (1Y) Calculated over the trailing 1-year period	0.21%	0.69%	-0.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.35%	1.31%	-0.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.35%	1.31%	-0.96%

PMMF vs. CLOA - Expense Ratio Comparison

Both PMMF and CLOA have an expense ratio of 0.20%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

PMMF vs. CLOA - Dividend Comparison

PMMF's dividend yield for the trailing twelve months is around 3.96%, less than CLOA's 4.95% yield.

Position	TTM	2025	2024	2023
CLOA iShares AAA CLO Active ETF	4.95%	5.35%	6.01%	5.88%
PMMF iShares Prime Money Market ETF	3.96%	3.59%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PMMF and CLOA in my portfolio?

PMMF and CLOA have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PMMF or CLOA?

CLOA has higher volatility (0.15%) compared to PMMF (0.06%). In terms of maximum drawdown, PMMF dropped -0.13% vs CLOA's -1.34%.

Which ETF is better, PMMF or CLOA?

On 1-year performance, CLOA leads with 5.23% vs 3.97% for PMMF. Both ETFs have the same 0.20% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PMMF or CLOA?

Over the 1-year period, CLOA has performed better with a 5.23% return vs 3.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PMMF or CLOA?

PMMF and CLOA have the same expense ratio: 0.20% per year.

Which ETF pays a higher dividend yield, PMMF or CLOA?

CLOA has the higher dividend yield at 4.95%, compared with 3.96% for PMMF.

What is the main difference between PMMF and CLOA?

PMMF is categorized as Money Market, while CLOA is CLO.

Which has better risk-adjusted returns?

PMMF currently has the higher Sharpe Ratio (19.46 vs 7.58), 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.