PGIM AAA CLO ETF

PAAA
ETF Ticker

+3.76%

+4.93%

NYSE Arca Exchange

Fixed Income

United States

CLO

ETF Strategy Fund Grade AA

The PGIM AAA CLO ETF, PAAA_US, is an actively managed strategy providing exposure to United States, CLO Fixed Income. It is listed on the NYSE Arca Exchange and has assets under management of $12,300.0m (as of Aug 31, 2026). The ETF trades in USD and was listed on the exchange on Jul 19, 2023. It has a net expense ratio of 19bps. (All data in USD as of Oct 15, 2026 unless stated.)

The investment philosophy driving the actively managed PGIM AAA CLO ETF maximizes total return by investing primarily in USD collateralized loan obligations at the top of the capital structure. The fund allocates ≥80% of investable assets to CLO tranches rated AAA (or comparable), with flexibility to invest up to a limited sleeve in A-rated tranches; exposure spans primary and secondary markets. Security selection combines top-down credit/sector views with bottom-up CLO manager, collateral, and structural analysis, emphasizing senior tranche protections, collateral quality, and cash-flow resilience. Portfolio construction diversifies by manager, deal, vintage, industry mix, and reinvestment profile; single-deal and fixed-rate exposure are constrained (e.g., not >10% per CLO; limited fixed-rate). Floating-rate holdings target de minimis interest-rate duration while managing spread and liquidity risk. Active trading adjusts for collateral performance, manager behavior, structural triggers, and relative value; positions are reduced upon credit migration or unfavorable documentation.

ETF Details

Key Facts

Issuer:
PGIM Investments
AUM:
$12,300.0m (as of Aug 31, 2026)
Net Expense Ratio:
19 bps
Inception Date:
Jul 19, 2023
Index:
Actively managed strategy
Dividend Frequency:
N/A

Trading

Ticker:
PAAA
Exchange:
NYSE Arca Exchange
ISIN:
US69344A8348
Trading Currency:
USD
Domicile:
United States

Classification & Risk

Asset Class:
Fixed Income
Asset Region:
United States
Theme:
CLO
Economic Development:
Developed Markets
1 Year Volatility:
0.46%
3 Year Volatility:
0.95%
5 Year Volatility:
N/A

Performance

TTM Dividend Yield:
4.66% (verify with issuer)
1 Month Performance:
0.29%
3 Month Performance:
1.22%
6 Month Performance:
2.44%
1 Year Performance:
4.93%
3 Year Performance:
19.96%
5 Year Performance:
N/A
Investment Proposition

PGIM AAA CLO ETF (PAAA) delivers targeted exposure to AAA-rated tranches of collateralized loan obligations, aiming to harvest floating-rate credit income with structural protections at the top of the CLO capital stack. The actively managed strategy uses PGIM Fixed Income’s multi-sector credit platform to select across managers, vintages, and structures, balancing weighted average life, collateral quality, and deal documentation while maintaining a high-quality profile. Characteristics typically include minimal duration from floating coupons, low direct interest-rate sensitivity, and reliance on underlying loan performance and CLO market liquidity; it tends to benefit when short-term rates are firm and corporate fundamentals are stable, and can be challenged by widening CLO spreads or rising loan defaults. Portfolio roles include income generation with limited rate risk, diversification away from traditional core bond sectors, and a tactical overlay for floating-rate exposure. Suitable investors include income-focused multi-asset allocators seeking high-quality credit carry, and advisors implementing barbell structures around core bonds. It can be timely when policy rates are elevated or rising. A fund-specific risk to monitor is structural and market liquidity risk in the CLO market, which can impact pricing during stress.

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