KDEF vs. AAA

Last updated Jun 4, 2026

KDEF (PLUS Korea Defense Industry Index ETF) and AAA (AAF First Priority CLO Bond ETF) are both exchange-traded funds - KDEF is a Aerospace & Defense fund tracking the The Korea Defence Industry Index, while AAA is a CLO fund actively managed by Alternative Access Funds LLC. KDEF is passively managed, while AAA is actively managed. Over the past year, KDEF returned 40.06% vs 5.39% for AAA. At a correlation of -0.03, they often move in opposite directions. KDEF charges 0.65%/yr vs 0.25%/yr for AAA.

Performance

KDEF vs. AAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PLUS Korea Defense Industry Index ETF (KDEF) 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, KDEF achieves a 6.06% return, which is significantly higher than AAA's 1.86% return.

KDEF

• 1D: -2.40%
• 1M: -26.87%
• YTD: 6.06%
• 6M: 18.05%
• 1Y: 40.06%
• 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)

KDEF vs. AAA - Yearly Performance Comparison

	2026 (YTD)	2025
KDEF PLUS Korea Defense Industry Index ETF	6.06%	117.16%
AAA AAF First Priority CLO Bond ETF	1.86%	4.29%

Correlation

The correlation between KDEF and AAA is -0.08, 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	-0.08
Correlation (All Time) Calculated using the full available price history since Feb 6, 2025	-0.03

Return for Risk

KDEF vs. AAA — Risk / Return Rank

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

KDEF

KDEF Risk / Return Rank: 26
KDEF Sharpe Ratio Rank: 25
KDEF Sortino Ratio Rank: 25
KDEF Omega Ratio Rank: 25
KDEF Calmar Ratio Rank: 28
KDEF Martin Ratio Rank: 29

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.

KDEF vs. AAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PLUS Korea Defense Industry Index ETF (KDEF) 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.

	KDEF	AAA	Difference
Sharpe ratio: Return per unit of total volatility	0.90	2.36	-1.46
Sortino ratio: Return per unit of downside risk	1.42	4.06	-2.64
Omega ratio: Gain probability vs. loss probability	1.17	1.47	-0.30
Calmar ratio: Return relative to maximum drawdown	1.37	8.98	-7.62
Martin ratio: Return relative to average drawdown	4.15	27.78	-23.63
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KDEF vs. AAA - Sharpe Ratio Comparison

The current KDEF Sharpe Ratio is 0.90, which is lower than the AAA Sharpe Ratio of 2.36. The chart below compares the historical Sharpe Ratios of KDEF 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

	KDEF	AAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.90	2.36	-1.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	2.05	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.90	1.93	-0.03

Drawdowns

KDEF vs. AAA - Drawdown Comparison

The maximum KDEF drawdown since its inception was -29.45%, which is greater than AAA's maximum drawdown of -2.63%. Use the drawdown chart below to compare losses from any high point for KDEF and AAA.

Drawdown Indicators

	KDEF	AAA	Difference
Max Drawdown Largest peak-to-trough decline	-29.45%	-2.63%	-26.82%
Max Drawdown (1Y) Largest decline over 1 year	-29.45%	-0.60%	-28.85%
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	-29.45%	-0.22%	-29.23%
Average Drawdown Average peak-to-trough decline	-6.45%	-0.30%	-6.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	9.69%	0.19%	+9.50%

Volatility

KDEF vs. AAA - Volatility Comparison

PLUS Korea Defense Industry Index ETF (KDEF) has a higher volatility of 15.76% compared to AAF First Priority CLO Bond ETF (AAA) at 0.74%. This indicates that KDEF'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

	KDEF	AAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	15.76%	0.74%	+15.02%
Volatility (6M) Calculated over the trailing 6-month period	36.50%	1.76%	+34.74%
Volatility (1Y) Calculated over the trailing 1-year period	44.63%	2.30%	+42.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	46.54%	2.28%	+44.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	46.54%	2.15%	+44.39%

KDEF vs. AAA - Expense Ratio Comparison

KDEF has a 0.65% expense ratio, which is higher than AAA's 0.25% expense ratio.

Dividends

KDEF vs. AAA - Dividend Comparison

KDEF's dividend yield for the trailing twelve months is around 6.48%, more 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%
KDEF PLUS Korea Defense Industry Index ETF	6.48%	5.06%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both KDEF and AAA in my portfolio?

KDEF and AAA have a correlation of -0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KDEF or AAA?

KDEF has higher volatility (15.76%) compared to AAA (0.74%). In terms of maximum drawdown, KDEF dropped -29.45% vs AAA's -2.63%.

Which ETF is better, KDEF or AAA?

On 1-year performance, KDEF leads with 40.06% 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, KDEF or AAA?

Over the 1-year period, KDEF has performed better with a 40.06% return vs 5.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KDEF or AAA?

AAA is cheaper with a 0.25% expense ratio, compared with 0.65% for KDEF.

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

KDEF has the higher dividend yield at 6.48%, compared with 4.90% for AAA.

What is the main difference between KDEF and AAA?

KDEF is categorized as Aerospace & Defense, while AAA is CLO. They also come from different issuers: PLUS and Alternative Access Funds LLC. Their fees differ too: 0.65% for KDEF and 0.25% for AAA.

Which has better risk-adjusted returns?

AAA currently has the higher Sharpe Ratio (2.36 vs 0.90), 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.