FAAA vs. AAA

Last updated Jun 4, 2026

FAAA (Fidelity AAA CLO ETF) and AAA (AAF First Priority CLO Bond ETF) are both CLO funds. Both are actively managed. At a 0.09 correlation, their price movements are largely independent. FAAA charges 0.20%/yr vs 0.25%/yr for AAA.

Performance

FAAA vs. AAA - Performance Comparison

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

Returns By Period

FAAA

• 1D: 0.02%
• 1M: 0.49%
• YTD: —
• 6M: —
• 1Y: —
• 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)

FAAA vs. AAA - Yearly Performance Comparison

	2026 (YTD)
FAAA Fidelity AAA CLO ETF	1.50%
AAA AAF First Priority CLO Bond ETF	1.57%

Correlation

The correlation between FAAA and AAA is 0.09, 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 Feb 13, 2026	0.09

Return for Risk

FAAA 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: 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.

FAAA vs. AAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity AAA CLO ETF (FAAA) 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

	FAAA	AAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.36	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	2.05	—
Sharpe Ratio (All Time) Calculated using the full available price history	5.41	1.93	+3.48

Drawdowns

FAAA vs. AAA - Drawdown Comparison

The maximum FAAA drawdown since its inception was -0.55%, smaller than the maximum AAA drawdown of -2.63%. Use the drawdown chart below to compare losses from any high point for FAAA and AAA.

Drawdown Indicators

	FAAA	AAA	Difference
Max Drawdown Largest peak-to-trough decline	-0.55%	-2.63%	+2.08%
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	0.00%	-0.22%	+0.22%
Average Drawdown Average peak-to-trough decline	-0.07%	-0.30%	+0.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.19%	—

Volatility

Volatility by Period

	FAAA	AAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.74%	—
Volatility (6M) Calculated over the trailing 6-month period	—	1.76%	—
Volatility (1Y) Calculated over the trailing 1-year period	0.94%	2.30%	-1.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.94%	2.28%	-1.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.94%	2.15%	-1.21%

FAAA vs. AAA - Expense Ratio Comparison

FAAA 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

FAAA vs. AAA - Dividend Comparison

FAAA's dividend yield for the trailing twelve months is around 1.32%, less than 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%
FAAA Fidelity AAA CLO ETF	1.32%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FAAA and AAA in my portfolio?

FAAA and AAA have a correlation of 0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, FAAA or AAA?

On fees, FAAA is cheaper at 0.20% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, FAAA or AAA?

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

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

AAA has the higher dividend yield at 4.90%, compared with 1.32% for FAAA.

What is the main difference between FAAA and AAA?

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