PAAA vs TRPA

PAAAAPGIM AAA CLO ETF

TRPABHartford AAA CLO ETF

In short

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.

TRPA Floating-rate AAA CLO paper, actively picked instead of indexed: capital preservation plus monthly income from the senior slice of the loan-securitization stack. The quieter, smaller name in an aisle that filled up fast.

Stated mandate

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.

TRPA The Fund seeks capital preservation and current income by investing primarily in high-quality, floating-rate collateralized loan obligations. It is actively managed and does not seek to track a specified index.

Why people hold it

• 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.

• TRPA The mandate is plain English: capital preservation and current income from high-quality floating-rate CLOs, with a manager choosing the paper rather than a rulebook.
• Coupons float, resetting with short-term rates instead of locking in for years, which keeps interest-rate sensitivity low by design.
• Pays monthly, and the 0.24% fee sits right around the middle of the AAA CLO group.
• Lands in the upper half of its AAA CLO peer group, with the portfolio itself the sturdiest part of the profile.

Worth knowing

• 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.

• TRPA That 0.24% is a shade above the category's biggest names: JAAA, CLOA, FAAA and ACLO charge 0.20%, PAAA 0.19%.
• It trades thinly next to the category's giants, so wider spreads and limit orders come with the territory.
• AAA is the senior slice of a CLO, not a government guarantee. The collateral underneath is leveraged corporate loans.

Full PAAA profile⁠

Full TRPA profile⁠