PAAA vs VTI
PAAA vs VTI
PGIM AAA CLO ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | PAAA | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.03% | |
| AUM | $11.2B | $663.5B | |
| Dividend Yield | 5.67% | 1.07% | |
| Holdings | 355 | 3,543 | |
| YTD Return | +2.72% | +13.92% | |
| 1Y Return | +4.92% | +24.07% | |
| 3Y Return (annualized) | +6.44% | +20.88% | |
| 5Y Return (annualized) | - | +12.47% | |
| Volatility (annualized) | 0.7% | 15.3% | |
| Max Drawdown | -1.0% | -56.6% | |
| Fund Family | PGIM Investments | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 19, 2023 | May 24, 2001 |
PAAA vs VTI Performance
PGIM AAA CLO ETF (PAAA) is a ETF from PGIM Investments and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PAAA returned +4.92% while VTI returned +24.07%. Year to date, PAAA is up 2.72% versus a gain of 13.92% for VTI.
Over three years, PAAA compounded at +6.44% per year against +20.88% for VTI. Across the full 3-year window we track, VTI has the edge at +8.13% annualized vs +6.46%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI 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 -56.6% for VTI. 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PAAA charges 0.19% per year while VTI charges 0.03%. On a $10,000 position that is $19 vs $3 annually, a gap of $16 per year that compounds over a long holding period. On income, PAAA currently yields 5.67% against 1.07% for VTI.
Holdings Overlap
PAAA and VTI share 0 holdings out of 2851 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 VTI?
PAAA has an expense ratio of 0.19% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, PAAA or VTI?
Over the past year PAAA returned +4.92% vs +24.07% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), PAAA annualized +6.46% vs +8.13% for VTI. Past performance does not guarantee future results.
Which is riskier, PAAA or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 0.7% for PAAA. Worst drawdown: PAAA -1.0% vs VTI -56.6%.
Should I hold both PAAA and VTI?
PAAA and VTI have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PAAA and VTI?
PAAA and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2851 unique securities.
Which pays a higher dividend, PAAA or VTI?
PAAA yields 5.67% while VTI yields 1.07%, so PAAA currently pays the higher dividend yield.
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