How do the expense ratios of PAAA and PULS compare?

The PAAA has an expense ratio of 0.19%, while PULS has an expense ratio of 0.15%. This means that PULS is slightly cheaper to hold. Expense ratios represent the annual fee charged by the fund, so a lower ratio can potentially result in better net returns over time.

How does the expense ratio difference impact returns?

PULS has an expense ratio of 0.15% compared to PAAA's 0.19%, resulting in a 0.04 percentage point difference. Over time, this small fee gap means PULS retains more of its gross returns for investors, provided performance is similar. It highlights the importance of comparing cost structures alongside other metrics like yields.

What are collateralised loan obligations?

Collateralised Loan Obligations (CLOs) are investment-grade securities backed by pools of corporate loans. Unlike traditional bonds, CLOs are structured products that redistribute loan risk into tranches. The AAA-rated tranches targeted by PAAA are the highest priority, designed to offer enhanced credit quality while providing yields typically higher than standard government bonds.

What is the difference between CLO ETFs and Ultrashort Bond ETFs?

PAAA invests in AAA-rated collateralised loan obligations (CLOs), which are securitized bonds with higher yields. PULS focuses on ultrashort duration bond ETFs, typically featuring shorter maturities. The CLOs offer potentially higher yields but may involve more credit risk, whereas ultrashort bond ETFs provide less income and are typically less volatile and more stable.

How do index tracking and holdings overlap differ for these ETFs?

Neither fund specifies a tracked index. PAAA has no top holdings or sector weights available, while PULS lists PAAA as a 2.05% top holding. Shared top-10 holdings are none. Investors should consider potential double-counting and correlation risks due to PULS holding PAAA, despite the lack of direct index tracking disclosures for either fund.

How do the dividend yields compare?

PAAA has a dividend yield of 4.72%, while PULS has a dividend yield of 4.42%. PAAA offers a slightly higher income potential, which may appeal to income-focused investors. However, the difference in yields is relatively small and should be considered alongside other factors like expense ratios and net assets.

Do PAAA and PULS have overlapping top holdings?

The shared top-10 holdings for PAAA and PULS are none. However, PULS lists PAAA as a 2.05% top holding, which introduces potential correlation for investors holding both. PAAA’s top holdings and sector weights are not available, making it difficult to assess underlying credit exposures or concentration risks directly.

What does the difference in inception dates imply?

PAAA began on July 19, 2023, while PULS started April 5, 2018. PULS has a longer track record, which provides more historical data to evaluate strategy performance and risk management over different market conditions. PAAA’s limited history means there is less data to assess its behaviour during varied economic cycles.

How do the net assets of PAAA and PULS compare?

PAAA has net assets of $13.3 billion, while PULS has significantly larger net assets of $19.3 billion. A larger asset base typically supports robust liquidity and operational stability. The size difference suggests PULS has more capital, which can be beneficial for large trading but doesn't necessarily predict future performance for either fund.

What is an expense ratio?

An expense ratio is an annual fee charged by a fund, expressed as a percentage of assets under management. It covers operating costs such as management, administrative, and marketing expenses. Lower expense ratios generally enhance net returns for investors, as fees directly reduce the fund's performance over time.

How should I interpret 'not available' data in fund comparisons?

When data like top holdings, sector weights, or issuer information is marked 'not available', it means the provider (Yahoo Finance in this case) did not supply those specific figures. Investors should rely on available metrics like expense ratio, yield, and net assets, while noting the lack of transparency in holdings limits the ability to fully assess underlying credit exposures or concentration risks.

Why are sector weights and top holdings important for ETFs?

Sector weights and top holdings help investors understand the specific companies or assets within a fund, allowing for assessment of concentration risk and diversification. In this comparison, PULS provides partial top holdings data (including PAAA at 2.05%), but both funds lack sector weights. PAAA's top holdings are entirely unavailable, which limits transparency regarding its specific credit exposures.

PAAA vs PULS

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare the PGIM ETF Trust AAA CLO ETF (PAAA) and the PGIM Ultra Short Bond ETF (PULS). This page reviews their expense ratios, net assets, dividend yields, and inception dates. It also examines how each fund tracks its market and holds securities, with top holdings details available for PULS but not available for PAAA. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

PAAA

Metric

PULS

0.19%

Expense Ratio

0.15%

4.72%

Dividend Yield

4.42%

$13.27B

Net Assets

$19.27B

313

Holdings

1,028

Jul 19, 2023

Inception Date

Apr 5, 2018

–

Index Tracked

–

Securitized Bond - Focused

Fund Category

Ultrashort Bond

PULS costs about $4.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

PAAA

Pros

PAAA offers a competitive 4.72% dividend yield, providing substantial income potential relative to its 0.19% expense ratio.
With $13.3 billion in net assets, the fund demonstrates significant scale, which typically supports robust liquidity and operational stability.
The fund's focus on AAA-rated collateralised loan obligations enhances credit quality while targeting high yields through securitized bonds.

Considerations

Inception in July 2023 limits the track record, offering less historical data to assess performance during varied market conditions.
Top holdings and sector weights are not available, reducing transparency for investors assessing underlying credit exposures or concentration risks.
The 0.19% expense ratio is higher than some broad market bond funds, potentially eroding returns over long holding periods.

PULS

Pros

PULS benefits from an earlier April 2018 inception date, providing a longer track record to evaluate strategy performance and risk management.
It maintains a lower expense ratio of 0.15% compared to PAAA, enhancing net returns despite a slightly lower 4.42% dividend yield.
Significantly larger net assets of $19.3 billion offer superior liquidity and stability, making it suitable for large institutional or retail trading.

Considerations

Top holdings and sector weights are not available, which limits the ability to verify diversification within the ultrashort bond category.
Listing PAAA as a 2.05% top holding introduces potential correlation and double-counting risks for investors already holding similar PGIM products.
A 4.42% dividend yield is lower than PAAA’s, which may reduce its attractiveness for income-focused investors prioritising immediate cash flow.

About PAAA and PULS

PAAA (PAAA)

The PGIM ETF Trust AAA CLO ETF is an exchange-traded fund focused on AAA-rated collateralised loan obligations (CLOs). It aims to provide income and stability by investing in the most senior, highest-quality tranches of CLO structures. With a low expense ratio of 0.19% and net assets of USD 13.27 billion, the fund offers a cost-effective way to gain exposure to this segment of the securitized bond market. Investors should note that while CLOs are considered lower risk within their asset class, they are still subject to credit, liquidity, and interest rate risks. The fund’s dividend yield of 4.72% may appeal to those seeking regular income, but returns are not guaranteed. As with any investment, it is important to consider your risk tolerance and consult with a financial advisor if unsure.

PULS (PULS)

The PGIM Ultra Short Bond ETF offers investors exposure to US dollar-denominated debt securities with short durations. This fund is designed to provide a potential source of income with lower interest rate sensitivity compared to longer-term bond portfolios. With a net asset value of USD 19.27 billion and a low expense ratio of 0.15%, it combines scale with cost efficiency. The fund holds approximately 1,028 distinct securities, diversifying risk across a broad range of issuers. While it currently displays a dividend yield of 4.42%, investors should remember that yields fluctuate and capital values can fall as well as rise. This ETF may appeal to those seeking a defensive position within fixed income, though it carries credit and interest rate risks inherent to the bond market.

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PAAA vs PULS

Fund Snapshot

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Investment Analysis

PAAA

Pros

Considerations

PULS

Pros

Considerations

About PAAA and PULS

Buy PAAA or PULS in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

How do the expense ratios of PAAA and PULS compare?

How does the expense ratio difference impact returns?

What are collateralised loan obligations?

What is the difference between CLO ETFs and Ultrashort Bond ETFs?

How do index tracking and holdings overlap differ for these ETFs?

How do the dividend yields compare?

Do PAAA and PULS have overlapping top holdings?

What does the difference in inception dates imply?

How do the net assets of PAAA and PULS compare?

What is an expense ratio?

How should I interpret 'not available' data in fund comparisons?

Why are sector weights and top holdings important for ETFs?

Fund Snapshot

About PAAA and PULS

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