EPEM vs. AAA

Last updated Jun 5, 2026

EPEM (Harbor Emerging Markets Equity ETF) and AAA (AAF First Priority CLO Bond ETF) are both exchange-traded funds - EPEM is a Emerging Markets Diversified fund actively managed by Harbor, while AAA is a CLO fund actively managed by Alternative Access Funds LLC. Both are actively managed. At a 0.05 correlation, their price movements are largely independent. EPEM charges 0.84%/yr vs 0.25%/yr for AAA.

Performance

EPEM vs. AAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Harbor Emerging Markets Equity ETF (EPEM) 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, EPEM achieves a 28.50% return, which is significantly higher than AAA's 2.01% return.

EPEM

• 1D: -0.80%
• 1M: 4.68%
• YTD: 28.50%
• 6M: 31.04%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

AAA

• 1D: 0.15%
• 1M: 0.96%
• YTD: 2.01%
• 6M: 2.48%
• 1Y: 5.33%
• 3Y*: 6.57%
• 5Y*: 4.67%
• 10Y*: —

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

EPEM vs. AAA - Yearly Performance Comparison

	2026 (YTD)	2025
EPEM Harbor Emerging Markets Equity ETF	28.50%	20.76%
AAA AAF First Priority CLO Bond ETF	2.01%	3.11%

Correlation

The correlation between EPEM and AAA is 0.05, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 6, 2025	0.05

Return for Risk

EPEM vs. AAA — Risk / Return Rank

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

AAA

AAA Risk / Return Rank: 86
AAA Sharpe Ratio Rank: 73
AAA Sortino Ratio Rank: 88
AAA Omega Ratio Rank: 78
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.

EPEM vs. AAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Harbor Emerging Markets Equity ETF (EPEM) 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	EPEM	AAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.33	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	2.06	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.88	1.94	+0.94

Drawdowns

EPEM vs. AAA - Drawdown Comparison

The maximum EPEM drawdown since its inception was -13.27%, which is greater than AAA's maximum drawdown of -2.63%. Use the drawdown chart below to compare losses from any high point for EPEM and AAA.

Drawdown Indicators

	EPEM	AAA	Difference
Max Drawdown Largest peak-to-trough decline	-13.27%	-2.63%	-10.64%
Max Drawdown (1Y) Largest decline over 1 year	—	-0.60%	—
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	-2.48%	-0.07%	-2.41%
Average Drawdown Average peak-to-trough decline	-1.96%	-0.30%	-1.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.19%	—

Volatility

Volatility by Period

	EPEM	AAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.72%	—
Volatility (6M) Calculated over the trailing 6-month period	—	1.77%	—
Volatility (1Y) Calculated over the trailing 1-year period	19.36%	2.30%	+17.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.36%	2.28%	+17.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.36%	2.15%	+17.21%

EPEM vs. AAA - Expense Ratio Comparison

EPEM has a 0.84% expense ratio, which is higher than AAA's 0.25% expense ratio.

Dividends

EPEM vs. AAA - Dividend Comparison

EPEM's dividend yield for the trailing twelve months is around 2.85%, less 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%
EPEM Harbor Emerging Markets Equity ETF	2.85%	3.66%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both EPEM and AAA in my portfolio?

EPEM and AAA have a correlation of 0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, EPEM or AAA?

On fees, AAA is cheaper at 0.25% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, EPEM or AAA?

AAA is cheaper with a 0.25% expense ratio, compared with 0.84% for EPEM.

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

AAA has the higher dividend yield at 4.89%, compared with 2.85% for EPEM.

What is the main difference between EPEM and AAA?

EPEM is categorized as Emerging Markets Diversified, while AAA is CLO. They also come from different issuers: Harbor and Alternative Access Funds LLC. Their fees differ too: 0.84% for EPEM and 0.25% for AAA.