FUSI vs PAAA

FUSIBAmerican Century Ultrashort Income ETF

PAAAAPGIM AAA CLO ETF

In short

FUSI Most funds in this corner of the bond market own one thing: AAA CLO tranches. FUSI casts wider, running an actively managed, ultrashort book across CLOs, commercial and residential mortgages and corporate credit, at 0.19% a year.

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

FUSI The fund seeks current income and, secondarily, long-term capital appreciation. It invests primarily in investment-grade floating-rate securities across CLOs, commercial and residential mortgages, corporate credit, and similar structured investments, with tactical sector allocation.

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

• FUSI The multisector angle. Rather than AAA CLOs alone, the managers range across CLOs, commercial and residential mortgages and corporate credit, primarily investment grade, with duration kept under a year.americancentury.com
• 0.19% a year, with no waiver propping it up, below the category median and level with PAAA. Fidelity's FAAA and FCLO sit at 0.00% net, but only under waivers running through January 31, 2027.
• Pays monthly, and the stated benchmark is the Bloomberg U.S. 1-3 Month Treasury Bill Index. The yardstick here is cash, not the broad bond market.

• 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

• FUSI The mandate shifted. Effective September 14, 2026 the fund was renamed from Multisector Floating Income to Ultrashort Income and dropped its policy of keeping at least 80% in floating-rate securities.sec.gov
• One of the smaller, lighter-traded names in a category stacked with multi-billion-dollar CLO funds, so spreads can run wider than the headline names and limit orders are the usual tool.
• Fully active with no index to replicate: the sector mix, credit calls and holdings (roughly 110 positions) come from the management team, not a published rulebook.

• 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 FUSI profile⁠

Full PAAA profile⁠