ACLO vs. AAA

Last updated Jun 4, 2026

ACLO (TCW AAA CLO ETF) and AAA (AAF First Priority CLO Bond ETF) are both CLO funds. Both are actively managed. Over the past year, ACLO returned 5.31% vs 5.39% for AAA. At a correlation of -0.01, they often move in opposite directions. ACLO charges 0.20%/yr vs 0.25%/yr for AAA.

Performance

ACLO vs. AAA - Performance Comparison

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

Returns By Period

In the year-to-date period, ACLO achieves a 2.21% return, which is significantly higher than AAA's 1.86% return.

ACLO

• 1D: 0.02%
• 1M: 0.42%
• YTD: 2.21%
• 6M: 2.58%
• 1Y: 5.31%
• 3Y*: —
• 5Y*: —
• 10Y*: —

AAA

• 1D: -0.22%
• 1M: 0.67%
• YTD: 1.86%
• 6M: 2.19%
• 1Y: 5.39%
• 3Y*: 6.50%
• 5Y*: 4.64%
• 10Y*: —

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

ACLO vs. AAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ACLO TCW AAA CLO ETF	2.21%	5.32%	0.81%
AAA AAF First Priority CLO Bond ETF	1.86%	4.92%	0.84%

Correlation

The correlation between ACLO and AAA is -0.14, 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	-0.14
Correlation (All Time) Calculated using the full available price history since Nov 19, 2024	-0.01

The correlation between ACLO and AAA shifts across timeframes, from -0.14 (1 year) to -0.01 (all time), reflecting how their relationship changes across market environments.

Return for Risk

ACLO vs. AAA — Risk / Return Rank

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

ACLO

ACLO Risk / Return Rank: 99
ACLO Sharpe Ratio Rank: 99
ACLO Sortino Ratio Rank: 99
ACLO Omega Ratio Rank: 99
ACLO Calmar Ratio Rank: 99
ACLO Martin Ratio Rank: 99

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

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.

ACLO vs. AAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for TCW AAA CLO ETF (ACLO) and AAF First Priority CLO Bond ETF (AAA). 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.

	ACLO	AAA	Difference
Sharpe ratio: Return per unit of total volatility	7.29	2.36	+4.94
Sortino ratio: Return per unit of downside risk	14.85	4.06	+10.79
Omega ratio: Gain probability vs. loss probability	3.41	1.47	+1.94
Calmar ratio: Return relative to maximum drawdown	19.90	8.98	+10.92
Martin ratio: Return relative to average drawdown	164.37	27.78	+136.60
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ACLO vs. AAA - Sharpe Ratio Comparison

The current ACLO Sharpe Ratio is 7.29, which is higher than the AAA Sharpe Ratio of 2.36. The chart below compares the historical Sharpe Ratios of ACLO and AAA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ACLO	AAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	7.29	2.36	+4.94
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	2.05	—
Sharpe Ratio (All Time) Calculated using the full available price history	5.10	1.93	+3.17

Drawdowns

ACLO vs. AAA - Drawdown Comparison

The maximum ACLO drawdown since its inception was -1.01%, smaller than the maximum AAA drawdown of -2.63%. Use the drawdown chart below to compare losses from any high point for ACLO and AAA.

Drawdown Indicators

	ACLO	AAA	Difference
Max Drawdown Largest peak-to-trough decline	-1.01%	-2.63%	+1.62%
Max Drawdown (1Y) Largest decline over 1 year	-0.27%	-0.60%	+0.33%
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	0.00%	-0.22%	+0.22%
Average Drawdown Average peak-to-trough decline	-0.05%	-0.30%	+0.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.03%	0.19%	-0.16%

Volatility

ACLO vs. AAA - Volatility Comparison

The current volatility for TCW AAA CLO ETF (ACLO) is 0.14%, while AAF First Priority CLO Bond ETF (AAA) has a volatility of 0.74%. This indicates that ACLO experiences smaller price fluctuations and is considered to be less risky than AAA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ACLO	AAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.14%	0.74%	-0.60%
Volatility (6M) Calculated over the trailing 6-month period	0.57%	1.76%	-1.19%
Volatility (1Y) Calculated over the trailing 1-year period	0.73%	2.30%	-1.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.08%	2.28%	-1.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.08%	2.15%	-1.07%

ACLO vs. AAA - Expense Ratio Comparison

ACLO has a 0.20% expense ratio, which is lower than AAA's 0.25% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ACLO vs. AAA - Dividend Comparison

ACLO's dividend yield for the trailing twelve months is around 4.91%, which matches AAA's 4.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
AAA AAF First Priority CLO Bond ETF	4.90%	5.11%	6.17%	6.11%	2.78%	1.06%	0.32%
ACLO TCW AAA CLO ETF	4.91%	4.87%	0.59%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ACLO and AAA in my portfolio?

ACLO and AAA have a correlation of -0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ACLO or AAA?

AAA has higher volatility (0.74%) compared to ACLO (0.14%). In terms of maximum drawdown, ACLO dropped -1.01% vs AAA's -2.63%.

Which ETF is better, ACLO or AAA?

On 1-year performance, AAA leads with 5.39% vs 5.31% for ACLO. On fees, ACLO is cheaper at 0.20% per year. On volatility, ACLO has been the lower-risk option at 0.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ACLO or AAA?

Over the 1-year period, AAA has performed better with a 5.39% return vs 5.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ACLO or AAA?

ACLO is cheaper with a 0.20% expense ratio, compared with 0.25% for AAA.

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

ACLO and AAA have nearly identical dividend yields, around 4.91%.

What is the main difference between ACLO and AAA?

They also come from different issuers: TCW and Alternative Access Funds LLC. Their fees differ too: 0.20% for ACLO and 0.25% for AAA.

Which has better risk-adjusted returns?

ACLO currently has the higher Sharpe Ratio (7.29 vs 2.36), 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.