IVV vs PAAA
IVV vs PAAA
iShares Core S&P 500 ETF vs PGIM AAA CLO ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IVV | PAAA | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.19% | |
| AUM | $865.2B | $11.2B | |
| Dividend Yield | 1.09% | 5.67% | |
| Holdings | 508 | 355 | |
| YTD Return | +11.54% | +2.70% | |
| 1Y Return | +21.48% | +4.90% | |
| 3Y Return (annualized) | +20.86% | +6.42% | |
| 5Y Return (annualized) | +13.02% | - | |
| Volatility (annualized) | 15.1% | 0.7% | |
| Max Drawdown | -56.5% | -1.0% | |
| Fund Family | iShares by BlackRock (US) | PGIM Investments | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Jul 19, 2023 |
IVV vs PAAA Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and PGIM AAA CLO ETF (PAAA) is a ETF from PGIM Investments. Over the past year IVV returned +21.48% while PAAA returned +4.90%. Year to date, IVV is up 11.54% versus a gain of 2.70% for PAAA.
Over three years, IVV compounded at +20.86% per year against +6.42% for PAAA. Across the full 3-year window we track, IVV has the edge at +6.97% annualized vs +6.46%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 0.7% for PAAA. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -56.5% for IVV and -1.0% for PAAA. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while PAAA charges 0.19%. On a $10,000 position that is $3 vs $19 annually, a gap of $16 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 5.67% for PAAA.
Holdings Overlap
IVV and PAAA share 0 holdings out of 573 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or PAAA?
IVV has an expense ratio of 0.03% while PAAA charges 0.19%. IVV is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, IVV or PAAA?
Over the past year IVV returned +21.48% vs +4.90% for PAAA, so IVV leads on 1-year performance. Over the longest common window we track (3 years), IVV annualized +6.97% vs +6.46% for PAAA. Past performance does not guarantee future results.
Which is riskier, IVV or PAAA?
IVV has been the more volatile fund at 15.1% annualized versus 0.7% for PAAA. Worst drawdown: IVV -56.5% vs PAAA -1.0%.
Should I hold both IVV and PAAA?
IVV and PAAA have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and PAAA?
IVV and PAAA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 573 unique securities.
Which pays a higher dividend, IVV or PAAA?
IVV yields 1.09% while PAAA yields 5.67%, so PAAA currently pays the higher dividend yield.
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