PAAA vs VXUS
PAAA vs VXUS
PGIM AAA CLO ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.
Side-by-Side Comparison
| Metric | PAAA | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.05% | |
| AUM | $11.2B | $156.5B | |
| Dividend Yield | 5.67% | 2.60% | |
| Holdings | 355 | 8,747 | |
| YTD Return | +2.70% | +11.69% | |
| 1Y Return | +4.90% | +26.65% | |
| 3Y Return (annualized) | +6.42% | +18.15% | |
| 5Y Return (annualized) | - | +8.66% | |
| Volatility (annualized) | 0.7% | 15.0% | |
| Max Drawdown | -1.0% | -39.9% | |
| Fund Family | PGIM Investments | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 19, 2023 | Jan 26, 2011 |
PAAA vs VXUS Performance
PGIM AAA CLO ETF (PAAA) is a ETF from PGIM Investments and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year PAAA returned +4.90% while VXUS returned +26.65%. Year to date, PAAA is up 2.70% versus a gain of 11.69% for VXUS.
Over three years, PAAA compounded at +6.42% per year against +18.15% for VXUS. Across the full 3-year window we track, PAAA has the edge at +6.46% annualized vs +4.69%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.0% 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 -39.9% for VXUS. 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PAAA charges 0.19% per year while VXUS charges 0.05%. On a $10,000 position that is $19 vs $5 annually, a gap of $14 per year that compounds over a long holding period. On income, PAAA currently yields 5.67% against 2.60% for VXUS.
Holdings Overlap
PAAA and VXUS share 0 holdings out of 7928 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 VXUS?
PAAA has an expense ratio of 0.19% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, PAAA or VXUS?
Over the past year PAAA returned +4.90% vs +26.65% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (3 years), PAAA annualized +6.46% vs +4.69% for VXUS. Past performance does not guarantee future results.
Which is riskier, PAAA or VXUS?
VXUS has been the more volatile fund at 15.0% annualized versus 0.7% for PAAA. Worst drawdown: PAAA -1.0% vs VXUS -39.9%.
Should I hold both PAAA and VXUS?
PAAA and VXUS have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PAAA and VXUS?
PAAA and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7928 unique securities.
Which pays a higher dividend, PAAA or VXUS?
PAAA yields 5.67% while VXUS yields 2.60%, so PAAA currently pays the higher dividend yield.
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