PPEM vs. AAA

Last updated Jun 24, 2026

PPEM (Putnam Panagora ESG Emerging Markets Equity ETF -) and AAA (AAF First Priority CLO Bond ETF) are both exchange-traded funds - PPEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index, while AAA is a CLO fund actively managed by Alternative Access Funds LLC. PPEM is passively managed, while AAA is actively managed. Over the past 3 years, PPEM returned 24.99%/yr vs 6.34%/yr for AAA. At a correlation of -0.01, they often move in opposite directions. PPEM charges 0.61%/yr vs 0.25%/yr for AAA.

Performance

PPEM vs. AAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Putnam Panagora ESG Emerging Markets Equity ETF - (PPEM) 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, PPEM achieves a 31.88% return, which is significantly higher than AAA's 1.98% return.

PPEM

• 1D: 0.56%
• 1M: 4.33%
• YTD: 31.88%
• 6M: 33.23%
• 1Y: 55.34%
• 3Y*: 24.99%
• 5Y*: —
• 10Y*: —

AAA

• 1D: -0.07%
• 1M: 0.55%
• YTD: 1.98%
• 6M: 2.06%
• 1Y: 4.96%
• 3Y*: 6.34%
• 5Y*: 4.64%
• 10Y*: —

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

PPEM vs. AAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
PPEM Putnam Panagora ESG Emerging Markets Equity ETF -	31.88%	35.39%	7.50%	0.19%
AAA AAF First Priority CLO Bond ETF	1.98%	4.92%	6.85%	8.34%

Correlation

The correlation between PPEM and AAA is 0.02, 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	0.02
Correlation (3Y) Calculated over the trailing 3-year period	-0.01
Correlation (All Time) Calculated using the full available price history since Jan 20, 2023	-0.01

Return for Risk

PPEM vs. AAA — Risk / Return Rank

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

PPEM

PPEM Risk / Return Rank: 83
PPEM Sharpe Ratio Rank: 86
PPEM Sortino Ratio Rank: 84
PPEM Omega Ratio Rank: 87
PPEM Calmar Ratio Rank: 76
PPEM Martin Ratio Rank: 80

AAA

AAA Risk / Return Rank: 84
AAA Sharpe Ratio Rank: 70
AAA Sortino Ratio Rank: 86
AAA Omega Ratio Rank: 76
AAA Calmar Ratio Rank: 96
AAA Martin Ratio Rank: 93

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.

PPEM vs. AAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Putnam Panagora ESG Emerging Markets Equity ETF - (PPEM) 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.

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.

	PPEM	AAA	Difference
Sharpe ratio: Return per unit of total volatility	2.62	2.15	+0.47
Sortino ratio: Return per unit of downside risk	3.48	3.63	-0.15
Omega ratio: Gain probability vs. loss probability	1.49	1.42	+0.07
Calmar ratio: Return relative to maximum drawdown	3.64	8.26	-4.62
Martin ratio: Return relative to average drawdown	14.57	24.40	-9.83

PPEM vs. AAA - Sharpe Ratio Comparison

The current PPEM Sharpe Ratio is 2.62, which is comparable to the AAA Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of PPEM 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.

Drawdowns

PPEM vs. AAA - Drawdown Comparison

The maximum PPEM drawdown since its inception was -18.44%, which is greater than AAA's maximum drawdown of -2.63%. Use the drawdown chart below to compare losses from any high point for PPEM and AAA.

Drawdown Indicators

	PPEM	AAA	Difference
Max Drawdown Largest peak-to-trough decline	-18.44%	-2.63%	-15.81%
Max Drawdown (1Y) Largest decline over 1 year	-15.28%	-0.60%	-14.68%
Max Drawdown (3Y) Largest decline over 3 years	-18.44%	-2.40%	-16.04%
Max Drawdown (5Y) Largest decline over 5 years	—	-2.63%	—
Current Drawdown Current decline from peak	-1.80%	-0.10%	-1.70%
Average Drawdown Average peak-to-trough decline	-4.19%	-0.31%	-3.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.81%	0.20%	+3.61%

Volatility

PPEM vs. AAA - Volatility Comparison

Putnam Panagora ESG Emerging Markets Equity ETF - (PPEM) has a higher volatility of 7.94% compared to AAF First Priority CLO Bond ETF (AAA) at 0.77%. This indicates that PPEM's price experiences larger fluctuations and is considered to be riskier than AAA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PPEM	AAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.94%	0.77%	+7.17%
Volatility (6M) Calculated over the trailing 6-month period	18.76%	1.78%	+16.98%
Volatility (1Y) Calculated over the trailing 1-year period	21.24%	2.32%	+18.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.26%	2.29%	+15.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.26%	2.15%	+16.11%

PPEM vs. AAA - Expense Ratio Comparison

PPEM has a 0.61% expense ratio, which is higher than AAA's 0.25% expense ratio.

Dividends

PPEM vs. AAA - Dividend Comparison

PPEM's dividend yield for the trailing twelve months is around 49.06%, 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%
PPEM Putnam Panagora ESG Emerging Markets Equity ETF -	49.06%	6.05%	3.27%	1.94%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PPEM and AAA in my portfolio?

PPEM and AAA have a correlation of 0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PPEM or AAA?

PPEM has higher volatility (7.94%) compared to AAA (0.77%). In terms of maximum drawdown, PPEM dropped -18.44% vs AAA's -2.63%.

Which ETF is better, PPEM or AAA?

On 3-year performance, PPEM leads with 24.99% vs 6.34% for AAA. On fees, AAA is cheaper at 0.25% per year. On volatility, AAA has been the lower-risk option at 0.77%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PPEM or AAA?

Over the 3-year period, PPEM has performed better with a 24.99% return vs 6.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PPEM or AAA?

AAA is cheaper with a 0.25% expense ratio, compared with 0.61% for PPEM.

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

PPEM has the higher dividend yield at 49.06%, compared with 4.90% for AAA.

What is the main difference between PPEM and AAA?

PPEM is categorized as Emerging Markets Diversified, while AAA is CLO. They also come from different issuers: Putnam and Alternative Access Funds LLC. Their fees differ too: 0.61% for PPEM and 0.25% for AAA.

Which has better risk-adjusted returns?

PPEM currently has the higher Sharpe Ratio (2.62 vs 2.15), 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.