AAA vs VYM
Alternative Access First Priority CLO Bond ETF vs Vanguard High Dividend Yield ETF
Which is better, AAA or VYM?
Investment Grade Bond against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | AAA | VYM |
|---|---|---|
| Expense Ratio | 0.19% | 0.04%Best |
| AUM | $65M | $81.6B |
| Dividend Yield | 4.68% | 2.22% |
| Holdings | 32 | 613 |
| YTD Return | +3.10% | +11.71%Best |
| 1Y Return | +4.34% | +16.24%Best |
| 3Y Return (annualized) | +5.83% | +17.24%Best |
| 5Y Return (annualized) | +4.79% | +11.86%Best |
| Volatility (annualized) | 1.5%Best | 13.9% |
| Max Drawdown | -2.6%Best | -15.8% |
| $10,000 over 5 years | $12,636 | $17,514Best |
| Fund Family | Alternative Access Funds, LLC | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Investment Grade Bond | Large Cap Value |
| Inception | Sep 9, 2020 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2020 to Sep 16, 2026 (6 years).
AAA vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6 years both funds cover.
AAA vs VYM Performance
Alternative Access First Priority CLO Bond ETF (AAA) is an ETF from Alternative Access Funds, LLC and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year AAA returned +4.34% while VYM returned +16.24%. Year to date, AAA is up 3.10% versus a gain of 11.71% for VYM.
Over three years, AAA compounded at +5.83% per year against +17.24% for VYM; over five years the annualized figures are +4.79% and +11.86% respectively. Across the full 6-year window we track, VYM has the edge at +14.51% annualized vs +4.03%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.9% compared with 1.5% for AAA. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -2.6% for AAA and -15.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.21. They move largely independently of each other.
Fees and Cost Over Time
AAA charges 0.19% per year while VYM charges 0.04%. On a $10,000 position that is $19 vs $4 annually, a gap of $15 per year that compounds over a long holding period. On income, AAA currently yields 4.68% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 1 holding in AAA and 557 in VYM, totalling 1.6% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 1 positions we hold weights for in AAA and 557 in VYM, against full books of 32 and 613.
You are not choosing between two funds in isolation.
Whichever of AAA and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, AAA or VYM?
AAA has an expense ratio of 0.19% while VYM charges 0.04%. VYM is the cheaper option, by $15 a year on a $10,000 investment.
Which performed better, AAA or VYM?
Over the past year AAA returned +4.34% vs +16.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), AAA annualized +4.03% vs +14.51% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AAA or VYM?
VYM has been the more volatile fund at 13.9% annualized versus 1.5% for AAA. Worst drawdown: AAA -2.6% vs VYM -15.8%.
Should I hold both AAA and VYM?
AAA and VYM have a monthly-return correlation of 0.21, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, AAA or VYM?
AAA yields 4.68% while VYM yields 2.22%, so AAA currently pays the higher dividend yield.
Is VYM better than AAA?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.