PAAA vs SPY
PAAA vs SPY
PGIM AAA CLO ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | PAAA | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.09% | |
| AUM | $11.2B | $789.1B | |
| Dividend Yield | 5.67% | 1.01% | |
| Holdings | 355 | 505 | |
| YTD Return | +2.70% | +9.93% | |
| 1Y Return | +5.00% | +19.50% | |
| 3Y Return (annualized) | +6.49% | +19.33% | |
| 5Y Return (annualized) | - | +12.82% | |
| Volatility (annualized) | 0.7% | 15.3% | |
| Max Drawdown | -1.0% | -56.5% | |
| Fund Family | PGIM Investments | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 19, 2023 | Jan 22, 1993 |
PAAA vs SPY Performance
PGIM AAA CLO ETF (PAAA) is a ETF from PGIM Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PAAA returned +5.00% while SPY returned +19.50%. Year to date, PAAA is up 2.70% versus a gain of 9.93% for SPY.
Over three years, PAAA compounded at +6.49% per year against +19.33% for SPY. Across the full 3-year window we track, SPY has the edge at +8.74% annualized vs +6.48%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -1.0% for PAAA and -56.5% for SPY. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PAAA charges 0.19% per year while SPY charges 0.09%. On a $10,000 position that is $19 vs $9 annually, a gap of $10 per year that compounds over a long holding period. On income, PAAA currently yields 5.67% against 1.01% for SPY.
Holdings Overlap
PAAA and SPY share 0 holdings out of 571 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, PAAA or SPY?
PAAA has an expense ratio of 0.19% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, PAAA or SPY?
Over the past year PAAA returned +5.00% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), PAAA annualized +6.48% vs +8.74% for SPY. Past performance does not guarantee future results.
Which is riskier, PAAA or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 0.7% for PAAA. Worst drawdown: PAAA -1.0% vs SPY -56.5%.
Should I hold both PAAA and SPY?
PAAA and SPY have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PAAA and SPY?
PAAA and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 571 unique securities.
Which pays a higher dividend, PAAA or SPY?
PAAA yields 5.67% while SPY yields 1.01%, so PAAA currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.