PVI vs. ACLO

Last updated Jun 24, 2026

PVI (Invesco VRDO Tax-Free ETF) and ACLO (TCW AAA CLO ETF) are both exchange-traded funds - PVI is a Municipal Bonds fund tracking the ICE US Municipal AMT-Free VRDO Constrained Index, while ACLO is a CLO fund actively managed by TCW. PVI is passively managed, while ACLO is actively managed. Over the past year, PVI returned 2.10% vs 5.27% for ACLO. At a 0.02 correlation, their price movements are largely independent. PVI charges 0.25%/yr vs 0.20%/yr for ACLO.

Performance

PVI vs. ACLO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco VRDO Tax-Free ETF (PVI) and TCW AAA CLO ETF (ACLO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PVI achieves a 0.60% return, which is significantly lower than ACLO's 2.44% return.

PVI

• 1D: -0.02%
• 1M: -0.06%
• YTD: 0.60%
• 6M: 0.79%
• 1Y: 2.10%
• 3Y*: 2.54%
• 5Y*: 1.93%
• 10Y*: 1.29%

ACLO

• 1D: 0.03%
• 1M: 0.44%
• YTD: 2.44%
• 6M: 2.55%
• 1Y: 5.27%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PVI vs. ACLO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PVI Invesco VRDO Tax-Free ETF	0.60%	3.12%	0.06%
ACLO TCW AAA CLO ETF	2.44%	5.32%	0.81%

Correlation

The correlation between PVI and ACLO 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 Nov 18, 2024	0.02

Return for Risk

PVI vs. ACLO — Risk / Return Rank

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

PVI

PVI Risk / Return Rank: 32
PVI Sharpe Ratio Rank: 23
PVI Sortino Ratio Rank: 22
PVI Omega Ratio Rank: 23
PVI Calmar Ratio Rank: 46
PVI Martin Ratio Rank: 45

ACLO

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

PVI vs. ACLO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco VRDO Tax-Free ETF (PVI) and TCW AAA CLO ETF (ACLO). 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.

	PVI	ACLO	Difference
Sharpe ratio: Return per unit of total volatility	0.79	7.28	-6.49
Sortino ratio: Return per unit of downside risk	1.18	15.06	-13.87
Omega ratio: Gain probability vs. loss probability	1.15	3.42	-2.27
Calmar ratio: Return relative to maximum drawdown	2.13	19.77	-17.63
Martin ratio: Return relative to average drawdown	6.88	164.39	-157.51

PVI vs. ACLO - Sharpe Ratio Comparison

The current PVI Sharpe Ratio is 0.79, which is lower than the ACLO Sharpe Ratio of 7.28. The chart below compares the historical Sharpe Ratios of PVI and ACLO, 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

PVI vs. ACLO - Drawdown Comparison

The maximum PVI drawdown since its inception was -4.10%, which is greater than ACLO's maximum drawdown of -1.01%. Use the drawdown chart below to compare losses from any high point for PVI and ACLO.

Drawdown Indicators

	PVI	ACLO	Difference
Max Drawdown Largest peak-to-trough decline	-4.10%	-1.01%	-3.09%
Max Drawdown (1Y) Largest decline over 1 year	-0.99%	-0.27%	-0.72%
Max Drawdown (3Y) Largest decline over 3 years	-1.17%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-1.17%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-1.17%	—	—
Current Drawdown Current decline from peak	-0.16%	0.00%	-0.16%
Average Drawdown Average peak-to-trough decline	-0.28%	-0.04%	-0.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.31%	0.03%	+0.28%

Volatility

PVI vs. ACLO - Volatility Comparison

Invesco VRDO Tax-Free ETF (PVI) has a higher volatility of 0.67% compared to TCW AAA CLO ETF (ACLO) at 0.19%. This indicates that PVI's price experiences larger fluctuations and is considered to be riskier than ACLO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PVI	ACLO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.67%	0.19%	+0.48%
Volatility (6M) Calculated over the trailing 6-month period	1.79%	0.58%	+1.21%
Volatility (1Y) Calculated over the trailing 1-year period	2.66%	0.73%	+1.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.98%	1.07%	+0.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.76%	1.07%	+0.69%

PVI vs. ACLO - Expense Ratio Comparison

PVI has a 0.25% expense ratio, which is higher than ACLO's 0.20% 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

PVI vs. ACLO - Dividend Comparison

PVI's dividend yield for the trailing twelve months is around 2.14%, less than ACLO's 4.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ACLO TCW AAA CLO ETF	4.90%	4.87%	0.59%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
PVI Invesco VRDO Tax-Free ETF	2.14%	2.22%	2.72%	3.36%	0.56%	0.00%	0.36%	1.15%	1.14%	0.56%	0.13%	0.00%

Frequently Asked Questions

Can I hold both PVI and ACLO in my portfolio?

PVI and ACLO 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, PVI or ACLO?

PVI has higher volatility (0.67%) compared to ACLO (0.19%). In terms of maximum drawdown, PVI dropped -4.10% vs ACLO's -1.01%.

Which ETF is better, PVI or ACLO?

On 1-year performance, ACLO leads with 5.27% vs 2.10% for PVI. On fees, ACLO is cheaper at 0.20% per year. On volatility, ACLO has been the lower-risk option at 0.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PVI or ACLO?

Over the 1-year period, ACLO has performed better with a 5.27% return vs 2.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PVI or ACLO?

ACLO is cheaper with a 0.20% expense ratio, compared with 0.25% for PVI.

Which ETF pays a higher dividend yield, PVI or ACLO?

ACLO has the higher dividend yield at 4.90%, compared with 2.14% for PVI.

What is the main difference between PVI and ACLO?

PVI is categorized as Municipal Bonds, while ACLO is CLO. They also come from different issuers: Invesco and TCW. Their fees differ too: 0.25% for PVI and 0.20% for ACLO.

Which has better risk-adjusted returns?

ACLO currently has the higher Sharpe Ratio (7.28 vs 0.79), 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.