ABI vs PAAA

ABIDVictoryShares Pioneer Asset-Based Inc ETF

PAAAAPGIM AAA CLO ETF

In short

ABI Most funds in this corner buy one thing: AAA CLO tranches. ABI roams the whole securitized aisle instead (CLOs, CMOs, CMBS, ABS), stock-picked by an active manager into a compact bond book that pays monthly.

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

ABI The Fund seeks attractive total return by primarily investing in asset-based income investments, including debt instruments collateralized by specific assets such as CMOs, CLOs, CMBS, and ABS.

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

• ABI Broader mandate than the AAA-CLO crowd: the fund invests across asset-backed income, including CMOs, CLOs, CMBS and ABS, rather than a single slice of the securitized market.
• Actively managed and concentrated, roughly 40 positions. A human is picking which collateral pools to own instead of buying the index wholesale.
• Pays monthly, which suits investors who like their bond income arriving on a regular cadence.

• 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

• ABI Active management carries an active price: 0.87% a year, against the 0.19% to 0.20% charged by the large AAA CLO funds like JAAA, CLOA and PAAA.
• Launched in June 2025, so the track record is short and the fund trades lightly. Thin volume can mean wider gaps between the price you pay and the value of the bonds inside.
• Reaching beyond AAA CLOs into CMBS, ABS and CMOs adds credit and complexity that a pure top-tranche fund avoids. More levers to pull, more that can move.

• 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 ABI profile⁠

Full PAAA profile⁠