USFR vs. PAAA

Last updated Jul 12, 2026

USFR (WisdomTree Floating Rate Treasury Fund) and PAAA (PGIM AAA CLO ETF) are both exchange-traded funds - USFR is a Government Bonds fund tracking the Bloomberg U.S. Treasury Floating Rate Bond Index, while PAAA is a CLO fund actively managed by PGIM. USFR is passively managed, while PAAA is actively managed. Over the past year, USFR returned 3.93% vs 5.02% for PAAA. At a 0.08 correlation, their price movements are largely independent. USFR charges 0.15%/yr vs 0.19%/yr for PAAA.

Performance

USFR vs. PAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Floating Rate Treasury Fund (USFR) 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, USFR achieves a 2.01% return, which is significantly lower than PAAA's 2.51% return.

USFR

• 1D: 0.02%
• 1M: 0.30%
• 6M: 1.90%
• YTD: 2.01%
• 1Y: 3.93%
• 3Y*: 4.71%
• 5Y*: 3.75%
• 10Y*: 2.49%

PAAA

• 1D: 0.06%
• 1M: 0.36%
• 6M: 2.31%
• YTD: 2.51%
• 1Y: 5.02%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

USFR vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
USFR WisdomTree Floating Rate Treasury Fund	2.01%	4.23%	5.47%	2.18%
PAAA PGIM AAA CLO ETF	2.51%	5.37%	7.47%	3.83%

Correlation

The correlation between USFR and PAAA is 0.08, 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	0.08
Correlation (All Time) Calculated using the full available price history since Jul 26, 2023	0.08

Return for Risk

USFR vs. PAAA — Risk / Return Rank

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

USFR

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

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.

USFR vs. PAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Floating Rate Treasury Fund (USFR) 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.

	USFR	PAAA	Difference
Sharpe ratio: Return per unit of total volatility	14.83	10.92	+3.91
Sortino ratio: Return per unit of downside risk	51.65	21.32	+30.34
Omega ratio: Gain probability vs. loss probability	14.08	6.79	+7.29
Calmar ratio: Return relative to maximum drawdown	200.62	29.31	+171.31
Martin ratio: Return relative to average drawdown	801.27	181.99	+619.28

USFR vs. PAAA - Sharpe Ratio Comparison

The current USFR Sharpe Ratio is 14.83, which is higher than the PAAA Sharpe Ratio of 10.92. The chart below compares the historical Sharpe Ratios of USFR 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

USFR vs. PAAA - Drawdown Comparison

The maximum USFR drawdown since its inception was -1.36%, which is greater than PAAA's maximum drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for USFR and PAAA.

Drawdown Indicators

	USFR	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-1.36%	-1.04%	-0.32%
Max Drawdown (1Y) Largest decline over 1 year	-0.02%	-0.17%	+0.15%
Max Drawdown (3Y) Largest decline over 3 years	-0.06%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-0.18%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-0.80%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.15%	-0.02%	-0.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.00%	0.03%	-0.03%

Volatility

USFR vs. PAAA - Volatility Comparison

The current volatility for WisdomTree Floating Rate Treasury Fund (USFR) is 0.07%, while PGIM AAA CLO ETF (PAAA) has a volatility of 0.09%. This indicates that USFR experiences smaller price fluctuations and is considered to be less risky than PAAA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USFR	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.07%	0.09%	-0.02%
Volatility (6M) Calculated over the trailing 6-month period	0.19%	0.36%	-0.17%
Volatility (1Y) Calculated over the trailing 1-year period	0.27%	0.47%	-0.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.39%	0.96%	-0.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.77%	0.96%	-0.19%

USFR vs. PAAA - Expense Ratio Comparison

USFR has a 0.15% 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

USFR vs. PAAA - Dividend Comparison

USFR's dividend yield for the trailing twelve months is around 3.84%, less than PAAA's 4.84% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
PAAA PGIM AAA CLO ETF	4.84%	5.12%	5.88%	2.76%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
USFR WisdomTree Floating Rate Treasury Fund	3.84%	4.15%	5.17%	5.12%	1.78%	0.01%	0.40%	2.08%	1.67%	1.03%	0.29%

Frequently Asked Questions

Can I hold both USFR and PAAA in my portfolio?

USFR and PAAA have a correlation of 0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USFR or PAAA?

PAAA has higher volatility (0.09%) compared to USFR (0.07%). In terms of maximum drawdown, USFR dropped -1.36% vs PAAA's -1.04%.

Which ETF is better, USFR or PAAA?

On 1-year performance, PAAA leads with 5.02% vs 3.93% for USFR. On fees, USFR is cheaper at 0.15% per year. 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, USFR or PAAA?

Over the 1-year period, PAAA has performed better with a 5.02% return vs 3.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USFR or PAAA?

USFR is cheaper with a 0.15% expense ratio, compared with 0.19% for PAAA.

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

PAAA has the higher dividend yield at 4.84%, compared with 3.84% for USFR.

What is the main difference between USFR and PAAA?

USFR is categorized as Government Bonds, while PAAA is CLO. They also come from different issuers: WisdomTree and PGIM. Their fees differ too: 0.15% for USFR and 0.19% for PAAA.

Which has better risk-adjusted returns?

USFR currently has the higher Sharpe Ratio (14.83 vs 10.92), 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.