BEMB vs. AAA

Last updated Jun 23, 2026

BEMB (Ishares J.P. Morgan Broad USD Emerging Markets Bond ETF) and AAA (AAF First Priority CLO Bond ETF) are both exchange-traded funds - BEMB is a Emerging Markets Bonds fund actively managed by iShares, while AAA is a CLO fund actively managed by Alternative Access Funds LLC. Both are actively managed. Over the past 3 years, BEMB returned 8.50%/yr vs 6.36%/yr for AAA. At a 0.04 correlation, their price movements are largely independent. BEMB charges 0.18%/yr vs 0.25%/yr for AAA.

Performance

BEMB vs. AAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Ishares J.P. Morgan Broad USD Emerging Markets Bond ETF (BEMB) 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, BEMB achieves a 1.68% return, which is significantly lower than AAA's 2.06% return.

BEMB

• 1D: -0.33%
• 1M: 1.31%
• YTD: 1.68%
• 6M: 1.92%
• 1Y: 9.29%
• 3Y*: 8.50%
• 5Y*: —
• 10Y*: —

AAA

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

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

BEMB vs. AAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
BEMB Ishares J.P. Morgan Broad USD Emerging Markets Bond ETF	1.68%	12.27%	5.51%	8.88%
AAA AAF First Priority CLO Bond ETF	2.06%	4.92%	6.85%	7.00%

Correlation

The correlation between BEMB and AAA is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.05
Correlation (All Time) Calculated using the full available price history since Feb 24, 2023	0.04

Return for Risk

BEMB vs. AAA — Risk / Return Rank

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

BEMB

BEMB Risk / Return Rank: 66
BEMB Sharpe Ratio Rank: 69
BEMB Sortino Ratio Rank: 74
BEMB Omega Ratio Rank: 73
BEMB Calmar Ratio Rank: 53
BEMB Martin Ratio Rank: 62

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.

BEMB vs. AAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Ishares J.P. Morgan Broad USD Emerging Markets Bond ETF (BEMB) 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.

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.

	BEMB	AAA	Difference
Sharpe ratio: Return per unit of total volatility	2.15	2.21	-0.06
Sortino ratio: Return per unit of downside risk	3.16	3.73	-0.57
Omega ratio: Gain probability vs. loss probability	1.41	1.44	-0.02
Calmar ratio: Return relative to maximum drawdown	2.55	8.50	-5.95
Martin ratio: Return relative to average drawdown	10.92	25.11	-14.19

BEMB vs. AAA - Sharpe Ratio Comparison

The current BEMB Sharpe Ratio is 2.15, which is comparable to the AAA Sharpe Ratio of 2.21. The chart below compares the historical Sharpe Ratios of BEMB 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.

Drawdowns

BEMB vs. AAA - Drawdown Comparison

The maximum BEMB drawdown since its inception was -6.17%, which is greater than AAA's maximum drawdown of -2.63%. Use the drawdown chart below to compare losses from any high point for BEMB and AAA.

Drawdown Indicators

	BEMB	AAA	Difference
Max Drawdown Largest peak-to-trough decline	-6.17%	-2.63%	-3.54%
Max Drawdown (1Y) Largest decline over 1 year	-3.67%	-0.60%	-3.07%
Max Drawdown (3Y) Largest decline over 3 years	-6.17%	-2.40%	-3.77%
Max Drawdown (5Y) Largest decline over 5 years	—	-2.63%	—
Current Drawdown Current decline from peak	-0.33%	-0.03%	-0.30%
Average Drawdown Average peak-to-trough decline	-0.93%	-0.31%	-0.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.85%	0.20%	+0.65%

Volatility

BEMB vs. AAA - Volatility Comparison

Ishares J.P. Morgan Broad USD Emerging Markets Bond ETF (BEMB) has a higher volatility of 1.34% compared to AAF First Priority CLO Bond ETF (AAA) at 0.77%. This indicates that BEMB's price experiences larger fluctuations and is considered to be riskier than AAA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BEMB	AAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.34%	0.77%	+0.57%
Volatility (6M) Calculated over the trailing 6-month period	3.59%	1.79%	+1.80%
Volatility (1Y) Calculated over the trailing 1-year period	4.35%	2.32%	+2.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.87%	2.29%	+3.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.87%	2.15%	+3.72%

BEMB vs. AAA - Expense Ratio Comparison

BEMB has a 0.18% 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

BEMB vs. AAA - Dividend Comparison

BEMB's dividend yield for the trailing twelve months is around 6.85%, more than AAA's 4.89% 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%
BEMB Ishares J.P. Morgan Broad USD Emerging Markets Bond ETF	6.85%	6.88%	6.31%	5.46%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BEMB and AAA in my portfolio?

BEMB and AAA 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, BEMB or AAA?

BEMB has higher volatility (1.34%) compared to AAA (0.77%). In terms of maximum drawdown, BEMB dropped -6.17% vs AAA's -2.63%.

Which ETF is better, BEMB or AAA?

On 3-year performance, BEMB leads with 8.50% vs 6.36% for AAA. On fees, BEMB is cheaper at 0.18% per year. On volatility, AAA has been the lower-risk option at 0.77%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BEMB or AAA?

Over the 3-year period, BEMB has performed better with a 8.50% return vs 6.36%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BEMB or AAA?

BEMB is cheaper with a 0.18% expense ratio, compared with 0.25% for AAA.

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

BEMB has the higher dividend yield at 6.85%, compared with 4.89% for AAA.

What is the main difference between BEMB and AAA?

BEMB is categorized as Emerging Markets Bonds, while AAA is CLO. They also come from different issuers: iShares and Alternative Access Funds LLC. Their fees differ too: 0.18% for BEMB and 0.25% for AAA.

Which has better risk-adjusted returns?

AAA currently has the higher Sharpe Ratio (2.21 vs 2.15), 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.