ETF Evaluator:
PGIM AAA CLO ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in Securitized Bond - Focused Over the Last Year
| 6.0% | iShares BBB-B CLO Active ETF (BCLO) |
| 5.6% | Nuveen AA-BBB CLO ETF (NCLO) |
| 5.4% | Reckoner Yield Enhanced AAA CLO ETF (RAAA) |
| 5.4% | Eldridge BBB-B CLO ETF (CLOZ) |
| 5.3% | BondBloxx Private Credit CLO ETF (PCMM) |
Risk
Index
Risk
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ETF Details
PGIM AAA CLO ETF Overview
PGIM AAA CLO ETF (PAAA) is an actively managed Taxable Bond Securitized Bond - Focused exchange-traded fund (ETF). PGIM launched the ETF in 2023.
The investment seeks to maximize total return, through a combination of current income and capital appreciation.
Under normal circumstances, the fund invests at least 80% of its investable assets in U.S. dollar-denominated collateralized loan obligations (CLOs) that are, at the time of purchase, rated AAA (or equivalent) by at least one nationally recognized statistical rating organization (NRSRO) or, if unrated, determined by the subadviser to be of comparable quality. The fund is non-diversified.
About PGIM AAA CLO ETF (PAAA)
There are 3 members of the management team with an average tenure of 3.04 years: Edwin Wilches (2023), Gabriel Rivera (2023) and Connor Byrnes (2023). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and J.P. Morgan CLOIE AAA TR USD index with a weighting of 100%. PGIM AAA CLO ETF has 314 securities in its portfolio. The top 10 holdings constitute 16.9% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
PGIM AAA CLO ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. PGIM AAA CLO ETF has 47.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 98.4% (50.9% domestic bond, 47.5% foreign bond and 0.0% convertible bond). PGIM AAA CLO ETF has 1.6% of the portfolio in cash.
Assets Under Management
The fund has $11 billion in total assets, which is above the $1 billion average for the Securitized Bond - Focused category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
PAAA Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The PGIM AAA CLO ETF expense ratio is low compared to funds in the Securitized Bond - Focused category. PGIM AAA CLO ETF has an expense ratio of 0.19%, which is 39% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. PGIM AAA CLO ETF has a portfolio turnover rate of 68%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 51% for the Securitized Bond - Focused category.
Recently, in the month of July 2026, PGIM AAA CLO ETF returned 0.4%, which earned it a grade of C, as the Securitized Bond - Focused category had an average return of 0.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
PGIM AAA CLO ETF has a trailing yield of 5.23%, which is below the 5.32% category average.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
PGIM AAA CLO ETF Grades
Year to date, the ETF has returned 2.7%, 0.2 percentage points better than the category, which translates into a grade of C. The fund has returned 5.0% over the past year (grade of D) and 6.5% over the past three years (grade of B).
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PAAA Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| PAAA Return (NAV) | 0.4% | 1.2% | 5.0% | 6.5% | na | na |
| PAAA Return (Price) | 0.4% | 1.2% | 5.0% | 6.5% | na | na |
| NAV +/- Price Return | -0.004% | 0.048% | -0.011% | 0.020% | na | na |
| Securitized Bond - Focused Avg | 0.3% | 1.2% | 4.9% | 6.6% | 3.4% | 1.9% |
| PAAA Grade (NAV) | C | D | D | B | na | na |
| +/- Category (NAV) | 0.1% | 0.0% | 0.0% | -0.1% | na | na |
| PAAA Tax-Cost Ratio | na | na | 2.1% | 2.2% | na | na |
PAAA Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| PAAA Return (NAV) | 2.7% | 5.4% | 7.4% | na | na | na | na | na | na | na | na |
| PAAA Return (Price) | 2.8% | 5.4% | 7.5% | na | na | na | na | na | na | na | na |
| NAV +/- Price Ret | 0.007% | -0.011% | 0.012% | na | na | na | na | na | na | na | na |
| Securitized Bond - Focused Avg | 2.5% | 5.9% | 7.6% | 9.0% | -3.7% | 0.3% | 5.8% | 7.5% | 0.6% | 3.1% | 3.0% |
| PAAA Grade (NAV) | C | D | B | na | na | na | na | na | na | na | na |
| +/- Category | 0.2% | -0.5% | -0.2% | na | na | na | na | na | na | na | na |
| Risk Measures | |
| Beta: | 0.02 |
| R-Squared: | 5% |
| Standard Deviation: | 0.7% |
| Category Risk Index: | 0.47 |
| Category Risk Rating: | Below Average |
| Total Risk Index: | 0.05 |
| Total Risk Rating: | Low |
| Portfolio Characteristics | |
| Yield: | 5.2% |
| Total Assets: | $ 11,227 Mil |
| Share Class Assets: | $ 11,227 Mil |
| Turnover: | 68.0% |
| Expense Ratio: | 0.19% |
| Index Fund: | No |
| Index Tracked: | Bloomberg US Agg Bond TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | |
| Income Distribution Frequency: | |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 3.0 years | |||
| Average Tenure: 3.0 years | |||
| Managers (Year): Wilches Edwin (2023), Rivera Gabriel (2023), Byrnes Connor (2023) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 314 |
| % in Top 10 Holdings: | 16.9% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 47.5% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 50.9% |
| Foreign Bond: | 47.5% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 1.6% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | PGIM |
| Phone Number: | 888-247-8090 |
| Website: | www.pgim.com/investments |
| Inception Date: | July 19, 2023 |
Expenses and Fees
| Expense Ratio (%): | 0.19% (Rating: Low) |
| Category Average Expense Ratio (%): | 0.31% |
