AAAC vs PAAA

AAACBColumbia AAA CLO ETF

PAAAAPGIM AAA CLO ETF

In short

AAAC A late arrival to the AAA CLO crowd, competing on price: 0.20% a year, under the category median, with an active hand picking the paper. The stated goal is high current income, with capital preservation riding shotgun.

PAAA PGIM's entry in the AAA CLO race: an actively run book of the senior-most slice of collateralized loan obligations, floating-rate, priced at 0.19%, paid out monthly. Same playbook as the category's biggest names, a hair cheaper.

Stated mandate

AAAC The Fund seeks high current income and capital preservation. Its strategy involves selecting collateralized loan obligations and other instruments through credit analysis.

PAAA The Fund seeks to maximize total return through current income and capital appreciation. It invests primarily in U.S. dollar-denominated AAA-rated CLOs and is actively managed rather than designed to replicate a specific index.

Why people hold it

• AAAC Charges 0.20% a year, under the CLO category median and level with what the biggest incumbents (JAAA, CLOA) charge.
• Actively managed, so a credit team selects the CLOs and other instruments through its own analysis instead of following an index.
• Even as a newcomer, the build stands in the upper tier of a crowded CLO peer group.
• Ordinary 1940 Act fund structure: same plumbing as a conventional bond ETF, no partnership paperwork.

• PAAA At 0.19%, one of the cheapest tickets into AAA CLOs, undercutting the 0.20% charged by CLOA, JAAA, FAAA and ACLO and sitting well below the category median.
• Keeps at least 80% of investable assets in US dollar CLOs rated AAA at purchase, the tranche that stands first in line for cash from the underlying loan pool.mutualfunds.compgim.com
• CLO coupons float, so the income stream resets with short-term rates rather than locking to a fixed coupon. Cash goes out monthly.pgim.com
• A multi-billion-dollar fund that trades actively, with spread and execution behavior among the strongest in its peer group.

Worth knowing

• AAAC Launched in December 2025, so the track record is thin and risk measures rest on a short history.
• Payouts have arrived on an irregular schedule rather than a fixed monthly rhythm.
• Smaller and less traded than the category's established giants, which can mean wider spreads on large orders.

• PAAA Actively managed against the JP Morgan CLOIE AAA Index, not built to match it. Holdings and results can diverge from the benchmark by design.
• The AAA stamp sits atop a pool of leveraged loans to below-investment-grade borrowers, and up to 20% of investable assets can go outside AAA-rated CLOs.mutualfunds.com
• Launched in 2023, so the track record is short and does not yet span a full credit cycle.

Full AAAC profile⁠

Full PAAA profile⁠