TBUX vs. PAAA

Last updated Jun 23, 2026

TBUX (T. Rowe Price Ultra Short-Term Bond ETF) and PAAA (PGIM AAA CLO ETF) are both exchange-traded funds - TBUX is a Ultrashort Bond fund actively managed by T. Rowe Price, while PAAA is a CLO fund actively managed by PGIM. Both are actively managed. Over the past year, TBUX returned 4.64% vs 5.13% for PAAA. At a correlation of -0.04, they often move in opposite directions. TBUX charges 0.17%/yr vs 0.19%/yr for PAAA.

Performance

TBUX vs. PAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Ultra Short-Term Bond ETF (TBUX) 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, TBUX achieves a 1.79% return, which is significantly lower than PAAA's 2.24% return.

TBUX

• 1D: -0.04%
• 1M: 0.27%
• YTD: 1.79%
• 6M: 1.95%
• 1Y: 4.64%
• 3Y*: 5.82%
• 5Y*: —
• 10Y*: —

PAAA

• 1D: 0.02%
• 1M: 0.26%
• YTD: 2.24%
• 6M: 2.39%
• 1Y: 5.13%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

TBUX vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
TBUX T. Rowe Price Ultra Short-Term Bond ETF	1.79%	5.37%	6.38%	3.22%
PAAA PGIM AAA CLO ETF	2.24%	5.37%	7.47%	3.83%

Correlation

The correlation between TBUX and PAAA is 0.00, 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	0.00
Correlation (All Time) Calculated using the full available price history since Jul 26, 2023	-0.04

Return for Risk

TBUX vs. PAAA — Risk / Return Rank

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

TBUX

TBUX Risk / Return Rank: 99
TBUX Sharpe Ratio Rank: 99
TBUX Sortino Ratio Rank: 99
TBUX Omega Ratio Rank: 99
TBUX Calmar Ratio Rank: 99
TBUX Martin Ratio Rank: 99

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.

TBUX vs. PAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Ultra Short-Term Bond ETF (TBUX) 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.

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.

	TBUX	PAAA	Difference
Sharpe ratio: Return per unit of total volatility	6.93	11.01	-4.08
Sortino ratio: Return per unit of downside risk	13.50	21.43	-7.93
Omega ratio: Gain probability vs. loss probability	2.97	6.78	-3.81
Calmar ratio: Return relative to maximum drawdown	46.48	29.61	+16.87
Martin ratio: Return relative to average drawdown	170.53	183.59	-13.05

TBUX vs. PAAA - Sharpe Ratio Comparison

The current TBUX Sharpe Ratio is 6.93, which is lower than the PAAA Sharpe Ratio of 11.01. The chart below compares the historical Sharpe Ratios of TBUX 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.

Drawdowns

TBUX vs. PAAA - Drawdown Comparison

The maximum TBUX drawdown since its inception was -1.82%, which is greater than PAAA's maximum drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for TBUX and PAAA.

Drawdown Indicators

	TBUX	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-1.82%	-1.04%	-0.78%
Max Drawdown (1Y) Largest decline over 1 year	-0.10%	-0.17%	+0.07%
Max Drawdown (3Y) Largest decline over 3 years	-0.33%	—	—
Current Drawdown Current decline from peak	-0.07%	0.00%	-0.07%
Average Drawdown Average peak-to-trough decline	-0.28%	-0.02%	-0.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.03%	0.03%	0.00%

Volatility

TBUX vs. PAAA - Volatility Comparison

T. Rowe Price Ultra Short-Term Bond ETF (TBUX) has a higher volatility of 0.24% compared to PGIM AAA CLO ETF (PAAA) at 0.10%. This indicates that TBUX'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

	TBUX	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.24%	0.10%	+0.14%
Volatility (6M) Calculated over the trailing 6-month period	0.48%	0.35%	+0.13%
Volatility (1Y) Calculated over the trailing 1-year period	0.67%	0.47%	+0.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.06%	0.97%	+0.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.06%	0.97%	+0.09%

TBUX vs. PAAA - Expense Ratio Comparison

TBUX has a 0.17% 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

TBUX vs. PAAA - Dividend Comparison

TBUX's dividend yield for the trailing twelve months is around 4.48%, less than PAAA's 4.87% yield.

Position	TTM	2025	2024	2023	2022	2021
PAAA PGIM AAA CLO ETF	4.87%	5.12%	5.88%	2.76%	0.00%	0.00%
TBUX T. Rowe Price Ultra Short-Term Bond ETF	4.48%	4.67%	5.39%	4.66%	2.58%	0.27%

Frequently Asked Questions

Can I hold both TBUX and PAAA in my portfolio?

TBUX and PAAA have a correlation of 0.00, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TBUX or PAAA?

TBUX has higher volatility (0.24%) compared to PAAA (0.10%). In terms of maximum drawdown, TBUX dropped -1.82% vs PAAA's -1.04%.

Which ETF is better, TBUX or PAAA?

On 1-year performance, PAAA leads with 5.13% vs 4.64% for TBUX. On fees, TBUX is cheaper at 0.17% per year. On volatility, PAAA has been the lower-risk option at 0.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TBUX or PAAA?

Over the 1-year period, PAAA has performed better with a 5.13% return vs 4.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TBUX or PAAA?

TBUX is cheaper with a 0.17% expense ratio, compared with 0.19% for PAAA.

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

PAAA has the higher dividend yield at 4.87%, compared with 4.48% for TBUX.

What is the main difference between TBUX and PAAA?

TBUX is categorized as Ultrashort Bond, while PAAA is CLO. They also come from different issuers: T. Rowe Price and PGIM. Their fees differ too: 0.17% for TBUX and 0.19% for PAAA.

Which has better risk-adjusted returns?

PAAA currently has the higher Sharpe Ratio (11.01 vs 6.93), 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.