FARX vs. AAA

Last updated Jun 4, 2026

FARX (Frontier Asset Absolute Return ETF) and AAA (AAF First Priority CLO Bond ETF) are both exchange-traded funds - FARX is a Multistrategy fund actively managed by Frontier, while AAA is a CLO fund actively managed by Alternative Access Funds LLC. Both are actively managed. Over the past year, FARX returned 20.01% vs 5.39% for AAA. At a 0.01 correlation, their price movements are largely independent. FARX charges 1.00%/yr vs 0.25%/yr for AAA.

Performance

FARX vs. AAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Frontier Asset Absolute Return ETF (FARX) 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, FARX achieves a 9.60% return, which is significantly higher than AAA's 1.86% return.

FARX

• 1D: -0.14%
• 1M: 1.27%
• YTD: 9.60%
• 6M: 10.73%
• 1Y: 20.01%
• 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)

FARX vs. AAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FARX Frontier Asset Absolute Return ETF	9.60%	10.61%	0.35%
AAA AAF First Priority CLO Bond ETF	1.86%	4.92%	0.13%

Correlation

The correlation between FARX and AAA is -0.01, 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 (1Y) Calculated over the trailing 1-year period	-0.01
Correlation (All Time) Calculated using the full available price history since Dec 23, 2024	0.01

Return for Risk

FARX vs. AAA — Risk / Return Rank

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

FARX

FARX Risk / Return Rank: 90
FARX Sharpe Ratio Rank: 87
FARX Sortino Ratio Rank: 87
FARX Omega Ratio Rank: 90
FARX Calmar Ratio Rank: 94
FARX Martin Ratio Rank: 93

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.

FARX vs. AAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Frontier Asset Absolute Return ETF (FARX) 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.

	FARX	AAA	Difference
Sharpe ratio: Return per unit of total volatility	2.89	2.36	+0.53
Sortino ratio: Return per unit of downside risk	3.94	4.06	-0.12
Omega ratio: Gain probability vs. loss probability	1.58	1.47	+0.11
Calmar ratio: Return relative to maximum drawdown	7.19	8.98	-1.80
Martin ratio: Return relative to average drawdown	24.70	27.78	-3.07
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FARX vs. AAA - Sharpe Ratio Comparison

The current FARX Sharpe Ratio is 2.89, which is comparable to the AAA Sharpe Ratio of 2.36. The chart below compares the historical Sharpe Ratios of FARX 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

	FARX	AAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.89	2.36	+0.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	2.05	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.12	1.93	+0.19

Drawdowns

FARX vs. AAA - Drawdown Comparison

The maximum FARX drawdown since its inception was -5.83%, which is greater than AAA's maximum drawdown of -2.63%. Use the drawdown chart below to compare losses from any high point for FARX and AAA.

Drawdown Indicators

	FARX	AAA	Difference
Max Drawdown Largest peak-to-trough decline	-5.83%	-2.63%	-3.20%
Max Drawdown (1Y) Largest decline over 1 year	-2.80%	-0.60%	-2.20%
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	-0.30%	-0.22%	-0.08%
Average Drawdown Average peak-to-trough decline	-1.02%	-0.30%	-0.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.81%	0.19%	+0.62%

Volatility

FARX vs. AAA - Volatility Comparison

Frontier Asset Absolute Return ETF (FARX) has a higher volatility of 1.42% compared to AAF First Priority CLO Bond ETF (AAA) at 0.74%. This indicates that FARX'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

	FARX	AAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.42%	0.74%	+0.68%
Volatility (6M) Calculated over the trailing 6-month period	5.49%	1.76%	+3.73%
Volatility (1Y) Calculated over the trailing 1-year period	6.96%	2.30%	+4.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.94%	2.28%	+4.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.94%	2.15%	+4.79%

FARX vs. AAA - Expense Ratio Comparison

FARX has a 1.00% expense ratio, which is higher than AAA's 0.25% expense ratio.

Dividends

FARX vs. AAA - Dividend Comparison

FARX's dividend yield for the trailing twelve months is around 2.89%, 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%
FARX Frontier Asset Absolute Return ETF	2.89%	3.25%	0.19%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FARX and AAA in my portfolio?

FARX and AAA have a correlation of -0.01, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FARX or AAA?

FARX has higher volatility (1.42%) compared to AAA (0.74%). In terms of maximum drawdown, FARX dropped -5.83% vs AAA's -2.63%.

Which ETF is better, FARX or AAA?

On 1-year performance, FARX leads with 20.01% vs 5.39% for AAA. On fees, AAA is cheaper at 0.25% per year. On volatility, AAA has been the lower-risk option at 0.74%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FARX or AAA?

Over the 1-year period, FARX has performed better with a 20.01% return vs 5.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FARX or AAA?

AAA is cheaper with a 0.25% expense ratio, compared with 1.00% for FARX.

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

AAA has the higher dividend yield at 4.90%, compared with 2.89% for FARX.

What is the main difference between FARX and AAA?

FARX is categorized as Multistrategy, while AAA is CLO. They also come from different issuers: Frontier and Alternative Access Funds LLC. Their fees differ too: 1.00% for FARX and 0.25% for AAA.

Which has better risk-adjusted returns?

FARX currently has the higher Sharpe Ratio (2.89 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.