AOA vs. VLU
Compare and contrast key facts about iShares Core Aggressive Allocation ETF (AOA) and SPDR S&P 1500 Value Tilt ETF (VLU).
AOA and VLU are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. AOA is a passively managed fund by iShares that tracks the performance of the S&P Target Risk Aggressive Index. It was launched on Nov 4, 2008. VLU is a passively managed fund by State Street that tracks the performance of the S&P 1500 Low Valuation Tilt Index. It was launched on Oct 24, 2012. Both AOA and VLU are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: AOA or VLU.
Key characteristics
| AOA | VLU | |
|---|---|---|
| YTD Return | 13.04% | 15.75% |
| 1Y Return | 23.05% | 27.60% |
| 3Y Return (Ann) | 3.80% | 7.90% |
| 5Y Return (Ann) | 8.63% | 13.27% |
| 10Y Return (Ann) | 7.78% | 14.17% |
| Sharpe Ratio | 2.49 | 2.69 |
| Sortino Ratio | 3.51 | 3.68 |
| Omega Ratio | 1.46 | 1.48 |
| Calmar Ratio | 2.43 | 4.38 |
| Martin Ratio | 16.41 | 16.64 |
| Ulcer Index | 1.49% | 1.75% |
| Daily Std Dev | 9.75% | 10.82% |
| Max Drawdown | -28.38% | -37.38% |
| Current Drawdown | -2.40% | -2.55% |
Correlation
The correlation between AOA and VLU is 0.65, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
AOA vs. VLU - Performance Comparison
In the year-to-date period, AOA achieves a 13.04% return, which is significantly lower than VLU's 15.75% return. Over the past 10 years, AOA has underperformed VLU with an annualized return of 7.78%, while VLU has yielded a comparatively higher 14.17% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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AOA vs. VLU - Expense Ratio Comparison
AOA has a 0.25% expense ratio, which is higher than VLU's 0.12% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
AOA vs. VLU - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core Aggressive Allocation ETF (AOA) and SPDR S&P 1500 Value Tilt ETF (VLU). 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.
Dividends
AOA vs. VLU - Dividend Comparison
AOA's dividend yield for the trailing twelve months is around 2.14%, more than VLU's 1.94% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AOA iShares Core Aggressive Allocation ETF | 2.14% | 2.22% | 2.10% | 1.67% | 1.71% | 2.50% | 2.37% | 5.09% | 2.02% | 2.15% | 2.18% | 1.84% |
VLU SPDR S&P 1500 Value Tilt ETF | 1.94% | 2.02% | 2.16% | 1.86% | 1.98% | 2.19% | 2.57% | 1.96% | 2.14% | 6.37% | 5.42% | 3.41% |
Drawdowns
AOA vs. VLU - Drawdown Comparison
The maximum AOA drawdown since its inception was -28.38%, smaller than the maximum VLU drawdown of -37.38%. Use the drawdown chart below to compare losses from any high point for AOA and VLU. For additional features, visit the drawdowns tool.
Volatility
AOA vs. VLU - Volatility Comparison
The current volatility for iShares Core Aggressive Allocation ETF (AOA) is 2.19%, while SPDR S&P 1500 Value Tilt ETF (VLU) has a volatility of 2.65%. This indicates that AOA experiences smaller price fluctuations and is considered to be less risky than VLU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.