PGIM AAA CLO ETF·Financial Services

Foster and Motley Inc. increased its stake in Pgim Aaa Clo Etf (NYSEARCA:PAAA) by 98.1% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 39,840 shares of the company's stock after buying an additional 19,725

In the face of 2026 market volatility, I recommend reallocating capital to JAAA and PAAA for ultra-defensive positioning. JAAA and PAAA, with 90%+ AAA CLO exposure, offer 5.0-5.6% yields, near-zero duration, and minimal drawdown risk. A 50/50 JAAA/PAAA blend optimizes liquidity, diversifies management risk, and delivers a 5.37% yield with just 1.63% max drawdown.

The PGIM AAA CLO ETF (PAAA) offers a 5% yield with ultra-low duration (~0.1 years), making it a highly stable, rate-insulated portfolio anchor. PAAA is best used as a stabilizer in both mid-yield (6–8%) and high-yield (10–15%) income portfolios, not as a primary income engine. PAAA's conservative focus on the most senior AAA CLO tranches differentiates it from peers, providing superior protection during credit drawdowns.

The opening act of 2026 has been nothing short of historic for the ETF industry, and fixed income is experiencing one of the strongest starts to a year on record.
Seek to maximize total return, through a combination of current income and capital appreciation.
Financial Services
Asset Management
2023-08-07
0.03
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