ZTWO vs. PAAA

Last updated Apr 2, 2026

Compare and contrast key facts about F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) and PGIM AAA CLO ETF (PAAA).

ZTWO and PAAA are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ZTWO is a passively managed fund by F/m that tracks the performance of the ICE 2-Year US Target Maturity Corporate Index - Benchmark TR Gross. It was launched on Jan 10, 2024. PAAA is an actively managed fund by PGIM. It was launched on Jul 19, 2023.

Performance

ZTWO vs. PAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) and PGIM AAA CLO ETF (PAAA). The values are adjusted to include any dividend payments, if applicable.

ZTWO vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	0.29%	5.49%	0.36%
PAAA PGIM AAA CLO ETF	1.03%	5.37%	0.19%

Returns By Period

In the year-to-date period, ZTWO achieves a 0.29% return, which is significantly lower than PAAA's 1.03% return.

ZTWO

• 1D: 0.03%
• 1M: -0.39%
• YTD: 0.29%
• 6M: 1.28%
• 1Y: 4.18%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PAAA

• 1D: 0.04%
• 1M: 0.24%
• YTD: 1.03%
• 6M: 2.23%
• 1Y: 5.31%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ZTWO vs. PAAA - Expense Ratio Comparison

ZTWO 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%.

PAAA

PGIM AAA CLO ETF

ZTWO

F/M 2-Year Investment Grade Corporate Bond ETF

Return for Risk

ZTWO vs. PAAA — Risk / Return Rank

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

ZTWO

ZTWO Risk / Return Rank: 97
ZTWO Sharpe Ratio Rank: 96
ZTWO Sortino Ratio Rank: 98
ZTWO Omega Ratio Rank: 97
ZTWO Calmar Ratio Rank: 96
ZTWO Martin Ratio Rank: 97

PAAA

PAAA Risk / Return Rank: 98
PAAA Sharpe Ratio Rank: 98
PAAA Sortino Ratio Rank: 98
PAAA Omega Ratio Rank: 99
PAAA Calmar Ratio Rank: 97
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.

ZTWO vs. PAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) 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.

	ZTWO	PAAA	Difference
Sharpe ratio Return per unit of total volatility	2.74	4.00	-1.26
Sortino ratio Return per unit of downside risk	4.28	4.83	-0.55
Omega ratio Gain probability vs. loss probability	1.60	2.92	-1.32
Calmar ratio Return relative to maximum drawdown	4.56	5.20	-0.64
Martin ratio Return relative to average drawdown	20.63	43.22	-22.60
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZTWO vs. PAAA - Sharpe Ratio Comparison

The current ZTWO Sharpe Ratio is 2.74, which is lower than the PAAA Sharpe Ratio of 4.00. The chart below compares the historical Sharpe Ratios of ZTWO and PAAA, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	ZTWO	PAAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.74	4.00	-1.26
Sharpe Ratio (All Time) Calculated using the full available price history	3.24	6.65	-3.40

Correlation

The correlation between ZTWO and PAAA is -0.02. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.

Dividends

ZTWO vs. PAAA - Dividend Comparison

ZTWO's dividend yield for the trailing twelve months is around 4.19%, less than PAAA's 5.03% yield.

	TTM	2025	2024	2023
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	4.19%	4.31%	0.39%	0.00%
PAAA PGIM AAA CLO ETF	5.03%	5.12%	5.88%	2.76%

Drawdowns

ZTWO vs. PAAA - Drawdown Comparison

The maximum ZTWO drawdown since its inception was -0.93%, smaller than the maximum PAAA drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for ZTWO and PAAA.

Drawdown Indicators

	ZTWO	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-0.93%	-1.04%	+0.11%
Max Drawdown (1Y) Largest decline over 1 year	-0.93%	-1.04%	+0.11%
Current Drawdown Current decline from peak	-0.49%	0.00%	-0.49%
Average Drawdown Average peak-to-trough decline	-0.10%	-0.02%	-0.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.21%	0.12%	+0.09%

Volatility

ZTWO vs. PAAA - Volatility Comparison

F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) has a higher volatility of 0.61% compared to PGIM AAA CLO ETF (PAAA) at 0.21%. This indicates that ZTWO'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

	ZTWO	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.61%	0.21%	+0.40%
Volatility (6M) Calculated over the trailing 6-month period	0.89%	0.39%	+0.50%
Volatility (1Y) Calculated over the trailing 1-year period	1.53%	1.33%	+0.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.50%	1.00%	+0.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.50%	1.00%	+0.50%