FTSL vs. AAA

Last updated Jun 23, 2026

FTSL (First Trust Senior Loan Fund) and AAA (AAF First Priority CLO Bond ETF) are both exchange-traded funds - FTSL is a High Yield Bonds fund actively managed by First Trust, while AAA is a CLO fund actively managed by Alternative Access Funds LLC. Both are actively managed. Over the past 5 years, FTSL returned 5.02%/yr vs 4.67%/yr for AAA. At a 0.03 correlation, their price movements are largely independent. FTSL charges 0.86%/yr vs 0.25%/yr for AAA.

Performance

FTSL vs. AAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Senior Loan Fund (FTSL) 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, FTSL achieves a 0.66% return, which is significantly lower than AAA's 2.06% return.

FTSL

• 1D: -0.02%
• 1M: 0.21%
• YTD: 0.66%
• 6M: 0.71%
• 1Y: 4.21%
• 3Y*: 7.15%
• 5Y*: 5.02%
• 10Y*: 4.45%

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)

FTSL vs. AAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
FTSL First Trust Senior Loan Fund	0.66%	5.98%	8.27%	11.58%	-2.50%	3.94%	3.55%
AAA AAF First Priority CLO Bond ETF	2.06%	4.92%	6.85%	8.94%	0.15%	0.86%	0.20%

Correlation

The correlation between FTSL and AAA is 0.10, 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	0.10
Correlation (3Y) Calculated over the trailing 3-year period	0.04
Correlation (5Y) Calculated over the trailing 5-year period	0.04
Correlation (All Time) Calculated using the full available price history since Sep 9, 2020	0.03

Return for Risk

FTSL vs. AAA — Risk / Return Rank

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

FTSL

FTSL Risk / Return Rank: 59
FTSL Sharpe Ratio Rank: 62
FTSL Sortino Ratio Rank: 72
FTSL Omega Ratio Rank: 80
FTSL Calmar Ratio Rank: 37
FTSL Martin Ratio Rank: 42

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.

FTSL vs. AAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Senior Loan Fund (FTSL) 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.

	FTSL	AAA	Difference
Sharpe ratio: Return per unit of total volatility	1.99	2.21	-0.22
Sortino ratio: Return per unit of downside risk	3.11	3.73	-0.63
Omega ratio: Gain probability vs. loss probability	1.46	1.44	+0.02
Calmar ratio: Return relative to maximum drawdown	1.81	8.50	-6.68
Martin ratio: Return relative to average drawdown	6.74	25.11	-18.37

FTSL vs. AAA - Sharpe Ratio Comparison

The current FTSL Sharpe Ratio is 1.99, which is comparable to the AAA Sharpe Ratio of 2.21. The chart below compares the historical Sharpe Ratios of FTSL 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

FTSL vs. AAA - Drawdown Comparison

The maximum FTSL drawdown since its inception was -22.67%, which is greater than AAA's maximum drawdown of -2.63%. Use the drawdown chart below to compare losses from any high point for FTSL and AAA.

Drawdown Indicators

	FTSL	AAA	Difference
Max Drawdown Largest peak-to-trough decline	-22.67%	-2.63%	-20.04%
Max Drawdown (1Y) Largest decline over 1 year	-2.33%	-0.60%	-1.73%
Max Drawdown (3Y) Largest decline over 3 years	-2.66%	-2.40%	-0.26%
Max Drawdown (5Y) Largest decline over 5 years	-6.96%	-2.63%	-4.33%
Max Drawdown (10Y) Largest decline over 10 years	-22.67%	—	—
Current Drawdown Current decline from peak	-0.02%	-0.03%	+0.01%
Average Drawdown Average peak-to-trough decline	-0.76%	-0.31%	-0.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.63%	0.20%	+0.43%

Volatility

FTSL vs. AAA - Volatility Comparison

The current volatility for First Trust Senior Loan Fund (FTSL) is 0.33%, while AAF First Priority CLO Bond ETF (AAA) has a volatility of 0.77%. This indicates that FTSL experiences smaller price fluctuations and is considered to be less risky than AAA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTSL	AAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.33%	0.77%	-0.44%
Volatility (6M) Calculated over the trailing 6-month period	1.96%	1.79%	+0.17%
Volatility (1Y) Calculated over the trailing 1-year period	2.12%	2.32%	-0.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.35%	2.29%	+1.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.19%	2.15%	+3.04%

FTSL vs. AAA - Expense Ratio Comparison

FTSL has a 0.86% expense ratio, which is higher than AAA's 0.25% expense ratio.

Dividends

FTSL vs. AAA - Dividend Comparison

FTSL's dividend yield for the trailing twelve months is around 6.46%, more than AAA's 4.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAA AAF First Priority CLO Bond ETF	4.89%	5.11%	6.17%	6.11%	2.78%	1.06%	0.32%	0.00%	0.00%	0.00%	0.00%	0.00%
FTSL First Trust Senior Loan Fund	6.46%	6.59%	7.56%	7.59%	4.77%	3.17%	3.48%	4.44%	4.29%	3.64%	3.70%	3.95%

Frequently Asked Questions

Can I hold both FTSL and AAA in my portfolio?

FTSL and AAA have a correlation of 0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FTSL or AAA?

AAA has higher volatility (0.77%) compared to FTSL (0.33%). In terms of maximum drawdown, FTSL dropped -22.67% vs AAA's -2.63%.

Which ETF is better, FTSL or AAA?

On 5-year performance, FTSL leads with 5.02% vs 4.67% for AAA. On fees, AAA is cheaper at 0.25% per year. On volatility, FTSL has been the lower-risk option at 0.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FTSL or AAA?

Over the 5-year period, FTSL has performed better with a 5.02% return vs 4.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FTSL or AAA?

AAA is cheaper with a 0.25% expense ratio, compared with 0.86% for FTSL.

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

FTSL has the higher dividend yield at 6.46%, compared with 4.89% for AAA.

What is the main difference between FTSL and AAA?

FTSL is categorized as High Yield Bonds, while AAA is CLO. They also come from different issuers: First Trust and Alternative Access Funds LLC. Their fees differ too: 0.86% for FTSL and 0.25% for AAA.

Which has better risk-adjusted returns?

AAA currently has the higher Sharpe Ratio (2.21 vs 1.99), 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.