AAA vs. ILS

Last updated Jun 23, 2026

AAA (AAF First Priority CLO Bond ETF) and ILS (Brookmont Catastrophic Bond ETF) are both exchange-traded funds - AAA is a CLO fund actively managed by Alternative Access Funds LLC, while ILS is a Nontraditional Bonds fund actively managed by Brookmont. Both are actively managed. Over the past year, AAA returned 5.10% vs 7.46% for ILS. At a correlation of -0.15, they often move in opposite directions. AAA charges 0.25%/yr vs 1.58%/yr for ILS.

Performance

AAA vs. ILS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AAF First Priority CLO Bond ETF (AAA) and Brookmont Catastrophic Bond ETF (ILS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AAA achieves a 2.06% return, which is significantly lower than ILS's 2.17% return.

AAA

• 1D: 0.07%
• 1M: 0.62%
• YTD: 2.06%
• 6M: 2.76%
• 1Y: 5.10%
• 3Y*: 6.36%
• 5Y*: 4.67%
• 10Y*: —

ILS

• 1D: 0.15%
• 1M: 1.16%
• YTD: 2.17%
• 6M: 2.46%
• 1Y: 7.46%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

AAA vs. ILS - Yearly Performance Comparison

	2026 (YTD)	2025
AAA AAF First Priority CLO Bond ETF	2.06%	4.45%
ILS Brookmont Catastrophic Bond ETF	2.17%	3.54%

Correlation

The correlation between AAA and ILS is -0.13, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.13
Correlation (All Time) Calculated using the full available price history since Apr 1, 2025	-0.15

Return for Risk

AAA vs. ILS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AAA

AAA Risk / Return Rank: 85
AAA Sharpe Ratio Rank: 71
AAA Sortino Ratio Rank: 87
AAA Omega Ratio Rank: 77
AAA Calmar Ratio Rank: 96
AAA Martin Ratio Rank: 94

ILS

ILS Risk / Return Rank: 95
ILS Sharpe Ratio Rank: 90
ILS Sortino Ratio Rank: 95
ILS Omega Ratio Rank: 94
ILS Calmar Ratio Rank: 98
ILS Martin Ratio Rank: 98

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AAA vs. ILS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AAF First Priority CLO Bond ETF (AAA) and Brookmont Catastrophic Bond ETF (ILS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AAA	ILS	Difference
Sharpe ratio: Return per unit of total volatility	2.21	2.91	-0.69
Sortino ratio: Return per unit of downside risk	3.73	4.78	-1.05
Omega ratio: Gain probability vs. loss probability	1.44	1.65	-0.21
Calmar ratio: Return relative to maximum drawdown	8.50	13.55	-5.05
Martin ratio: Return relative to average drawdown	25.11	49.81	-24.70

AAA vs. ILS - Sharpe Ratio Comparison

The current AAA Sharpe Ratio is 2.21, which is comparable to the ILS Sharpe Ratio of 2.91. The chart below compares the historical Sharpe Ratios of AAA and ILS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AAA vs. ILS - Drawdown Comparison

The maximum AAA drawdown since its inception was -2.63%, which is greater than ILS's maximum drawdown of -2.46%. Use the drawdown chart below to compare losses from any high point for AAA and ILS.

Drawdown Indicators

	AAA	ILS	Difference
Max Drawdown Largest peak-to-trough decline	-2.63%	-2.46%	-0.17%
Max Drawdown (1Y) Largest decline over 1 year	-0.60%	-0.55%	-0.05%
Max Drawdown (3Y) Largest decline over 3 years	-2.40%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-2.63%	—	—
Current Drawdown Current decline from peak	-0.03%	0.00%	-0.03%
Average Drawdown Average peak-to-trough decline	-0.31%	-0.54%	+0.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.20%	0.15%	+0.05%

Volatility

AAA vs. ILS - Volatility Comparison

The current volatility for AAF First Priority CLO Bond ETF (AAA) is 0.77%, while Brookmont Catastrophic Bond ETF (ILS) has a volatility of 0.83%. This indicates that AAA experiences smaller price fluctuations and is considered to be less risky than ILS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAA	ILS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.77%	0.83%	-0.06%
Volatility (6M) Calculated over the trailing 6-month period	1.79%	1.68%	+0.11%
Volatility (1Y) Calculated over the trailing 1-year period	2.32%	2.58%	-0.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.29%	3.78%	-1.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.15%	3.78%	-1.63%

AAA vs. ILS - Expense Ratio Comparison

AAA has a 0.25% expense ratio, which is lower than ILS's 1.58% expense ratio.

Dividends

AAA vs. ILS - Dividend Comparison

AAA's dividend yield for the trailing twelve months is around 4.89%, less than ILS's 8.06% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
AAA AAF First Priority CLO Bond ETF	4.89%	5.11%	6.17%	6.11%	2.78%	1.06%	0.32%
ILS Brookmont Catastrophic Bond ETF	8.06%	6.06%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both AAA and ILS in my portfolio?

AAA and ILS have a correlation of -0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AAA or ILS?

ILS has higher volatility (0.83%) compared to AAA (0.77%). In terms of maximum drawdown, AAA dropped -2.63% vs ILS's -2.46%.

Which ETF is better, AAA or ILS?

On 1-year performance, ILS leads with 7.46% vs 5.10% for AAA. On fees, AAA is cheaper at 0.25% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AAA or ILS?

Over the 1-year period, ILS has performed better with a 7.46% return vs 5.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AAA or ILS?

AAA is cheaper with a 0.25% expense ratio, compared with 1.58% for ILS.

Which ETF pays a higher dividend yield, AAA or ILS?

ILS has the higher dividend yield at 8.06%, compared with 4.89% for AAA.

What is the main difference between AAA and ILS?

AAA is categorized as CLO, while ILS is Nontraditional Bonds. They also come from different issuers: Alternative Access Funds LLC and Brookmont. Their fees differ too: 0.25% for AAA and 1.58% for ILS.

Which has better risk-adjusted returns?

ILS currently has the higher Sharpe Ratio (2.91 vs 2.21), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.