SPY vs. PAAA

Last updated Jun 9, 2026

SPY (State Street SPDR S&P 500 ETF) and PAAA (PGIM AAA CLO ETF) are both exchange-traded funds - SPY is a S&P 500 fund tracking the S&P 500 Index, while PAAA is a CLO fund actively managed by PGIM. SPY is passively managed, while PAAA is actively managed. Over the past year, SPY returned 24.79% vs 5.16% for PAAA. At a 0.18 correlation, their price movements are largely independent. SPY charges 0.09%/yr vs 0.19%/yr for PAAA.

Performance

SPY vs. PAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street SPDR S&P 500 ETF (SPY) 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, SPY achieves a 8.70% return, which is significantly higher than PAAA's 2.10% return.

SPY

• 1D: 0.23%
• 1M: 0.22%
• YTD: 8.70%
• 6M: 8.75%
• 1Y: 24.79%
• 3Y*: 21.35%
• 5Y*: 13.42%
• 10Y*: 15.27%

PAAA

• 1D: 0.02%
• 1M: 0.34%
• YTD: 2.10%
• 6M: 2.50%
• 1Y: 5.16%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SPY vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SPY State Street SPDR S&P 500 ETF	8.70%	17.72%	24.89%	5.14%
PAAA PGIM AAA CLO ETF	2.10%	5.37%	7.47%	3.83%

Correlation

The correlation between SPY and PAAA is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.28
Correlation (All Time) Calculated using the full available price history since Jul 27, 2023	0.18

Return for Risk

SPY vs. PAAA — Risk / Return Rank

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

SPY

SPY Risk / Return Rank: 69
SPY Sharpe Ratio Rank: 70
SPY Sortino Ratio Rank: 67
SPY Omega Ratio Rank: 70
SPY Calmar Ratio Rank: 62
SPY Martin Ratio Rank: 75

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.

SPY vs. PAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street SPDR S&P 500 ETF (SPY) 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.

	SPY	PAAA	Difference
Sharpe ratio: Return per unit of total volatility	2.06	10.91	-8.85
Sortino ratio: Return per unit of downside risk	2.78	21.41	-18.63
Omega ratio: Gain probability vs. loss probability	1.38	6.56	-5.19
Calmar ratio: Return relative to maximum drawdown	2.80	29.79	-26.98
Martin ratio: Return relative to average drawdown	12.93	184.52	-171.59
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SPY vs. PAAA - Sharpe Ratio Comparison

The current SPY Sharpe Ratio is 2.06, which is lower than the PAAA Sharpe Ratio of 10.91. The chart below compares the historical Sharpe Ratios of SPY 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

	SPY	PAAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.06	10.91	-8.85
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.79	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.85	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.58	6.79	-6.21

Drawdowns

SPY vs. PAAA - Drawdown Comparison

The maximum SPY drawdown since its inception was -55.19%, which is greater than PAAA's maximum drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for SPY and PAAA.

Drawdown Indicators

	SPY	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-55.19%	-1.04%	-54.15%
Max Drawdown (1Y) Largest decline over 1 year	-8.88%	-0.17%	-8.71%
Max Drawdown (3Y) Largest decline over 3 years	-18.76%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-24.50%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-33.72%	—	—
Current Drawdown Current decline from peak	-2.68%	0.00%	-2.68%
Average Drawdown Average peak-to-trough decline	-9.04%	-0.02%	-9.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.92%	0.03%	+1.89%

Volatility

SPY vs. PAAA - Volatility Comparison

State Street SPDR S&P 500 ETF (SPY) has a higher volatility of 3.72% compared to PGIM AAA CLO ETF (PAAA) at 0.12%. This indicates that SPY'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

	SPY	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.72%	0.12%	+3.60%
Volatility (6M) Calculated over the trailing 6-month period	9.31%	0.36%	+8.95%
Volatility (1Y) Calculated over the trailing 1-year period	12.10%	0.48%	+11.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.09%	0.97%	+16.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.96%	0.97%	+16.99%

SPY vs. PAAA - Expense Ratio Comparison

SPY has a 0.09% expense ratio, which is lower than PAAA's 0.19% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SPY vs. PAAA - Dividend Comparison

SPY's dividend yield for the trailing twelve months is around 1.00%, less than PAAA's 4.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PAAA PGIM AAA CLO ETF	4.88%	5.12%	5.88%	2.76%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SPY State Street SPDR S&P 500 ETF	1.00%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both SPY and PAAA in my portfolio?

SPY and PAAA have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SPY or PAAA?

SPY has higher volatility (3.72%) compared to PAAA (0.12%). In terms of maximum drawdown, SPY dropped -55.19% vs PAAA's -1.04%.

Which ETF is better, SPY or PAAA?

On 1-year performance, SPY leads with 24.79% vs 5.16% for PAAA. On fees, SPY is cheaper at 0.09% per year. On volatility, PAAA has been the lower-risk option at 0.12%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPY or PAAA?

Over the 1-year period, SPY has performed better with a 24.79% return vs 5.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPY or PAAA?

SPY is cheaper with a 0.09% expense ratio, compared with 0.19% for PAAA.

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

PAAA has the higher dividend yield at 4.88%, compared with 1.00% for SPY.

What is the main difference between SPY and PAAA?

SPY is categorized as S&P 500, while PAAA is CLO. They also come from different issuers: State Street and PGIM. Their fees differ too: 0.09% for SPY and 0.19% for PAAA.

Which has better risk-adjusted returns?

PAAA currently has the higher Sharpe Ratio (10.91 vs 2.06), 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.