NMB vs. AAA

Last updated Jun 4, 2026

NMB (Simplify National Muni Bond ETF) and AAA (AAF First Priority CLO Bond ETF) are both exchange-traded funds - NMB is a Municipal Bonds fund actively managed by Simplify, while AAA is a CLO fund actively managed by Alternative Access Funds LLC. Both are actively managed. Over the past year, NMB returned 5.78% vs 5.39% for AAA. At a 0.10 correlation, their price movements are largely independent. NMB charges 0.52%/yr vs 0.25%/yr for AAA.

Performance

NMB vs. AAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Simplify National Muni Bond ETF (NMB) 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, NMB achieves a 1.19% return, which is significantly lower than AAA's 1.86% return.

NMB

• 1D: -0.28%
• 1M: 1.26%
• YTD: 1.19%
• 6M: 0.91%
• 1Y: 5.78%
• 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)

NMB vs. AAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
NMB Simplify National Muni Bond ETF	1.19%	7.97%	-1.90%
AAA AAF First Priority CLO Bond ETF	1.86%	4.92%	1.91%

Correlation

The correlation between NMB and AAA is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.13
Correlation (All Time) Calculated using the full available price history since Sep 11, 2024	0.10

Return for Risk

NMB vs. AAA — Risk / Return Rank

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

NMB

NMB Risk / Return Rank: 21
NMB Sharpe Ratio Rank: 22
NMB Sortino Ratio Rank: 21
NMB Omega Ratio Rank: 22
NMB Calmar Ratio Rank: 22
NMB Martin Ratio Rank: 19

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.

NMB vs. AAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Simplify National Muni Bond ETF (NMB) 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.

	NMB	AAA	Difference
Sharpe ratio: Return per unit of total volatility	0.72	2.36	-1.64
Sortino ratio: Return per unit of downside risk	1.09	4.06	-2.97
Omega ratio: Gain probability vs. loss probability	1.14	1.47	-0.33
Calmar ratio: Return relative to maximum drawdown	0.97	8.98	-8.01
Martin ratio: Return relative to average drawdown	1.96	27.78	-25.82
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NMB vs. AAA - Sharpe Ratio Comparison

The current NMB Sharpe Ratio is 0.72, which is lower than the AAA Sharpe Ratio of 2.36. The chart below compares the historical Sharpe Ratios of NMB 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

	NMB	AAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.72	2.36	-1.64
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	2.05	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	1.93	-1.61

Drawdowns

NMB vs. AAA - Drawdown Comparison

The maximum NMB drawdown since its inception was -13.68%, which is greater than AAA's maximum drawdown of -2.63%. Use the drawdown chart below to compare losses from any high point for NMB and AAA.

Drawdown Indicators

	NMB	AAA	Difference
Max Drawdown Largest peak-to-trough decline	-13.68%	-2.63%	-11.05%
Max Drawdown (1Y) Largest decline over 1 year	-5.99%	-0.60%	-5.39%
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	-1.60%	-0.22%	-1.38%
Average Drawdown Average peak-to-trough decline	-3.36%	-0.30%	-3.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.96%	0.19%	+2.77%

Volatility

NMB vs. AAA - Volatility Comparison

Simplify National Muni Bond ETF (NMB) has a higher volatility of 1.74% compared to AAF First Priority CLO Bond ETF (AAA) at 0.74%. This indicates that NMB'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

	NMB	AAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.74%	0.74%	+1.00%
Volatility (6M) Calculated over the trailing 6-month period	4.42%	1.76%	+2.66%
Volatility (1Y) Calculated over the trailing 1-year period	8.13%	2.30%	+5.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.70%	2.28%	+10.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.70%	2.15%	+10.55%

NMB vs. AAA - Expense Ratio Comparison

NMB has a 0.52% expense ratio, which is higher than AAA's 0.25% expense ratio.

Dividends

NMB vs. AAA - Dividend Comparison

NMB's dividend yield for the trailing twelve months is around 5.87%, 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%
NMB Simplify National Muni Bond ETF	5.87%	4.48%	1.13%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both NMB and AAA in my portfolio?

NMB and AAA have a correlation of 0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NMB or AAA?

NMB has higher volatility (1.74%) compared to AAA (0.74%). In terms of maximum drawdown, NMB dropped -13.68% vs AAA's -2.63%.

Which ETF is better, NMB or AAA?

On 1-year performance, NMB leads with 5.78% 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, NMB or AAA?

Over the 1-year period, NMB has performed better with a 5.78% return vs 5.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, NMB or AAA?

AAA is cheaper with a 0.25% expense ratio, compared with 0.52% for NMB.

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

NMB has the higher dividend yield at 5.87%, compared with 4.90% for AAA.

What is the main difference between NMB and AAA?

NMB is categorized as Municipal Bonds, while AAA is CLO. They also come from different issuers: Simplify and Alternative Access Funds LLC. Their fees differ too: 0.52% for NMB and 0.25% for AAA.

Which has better risk-adjusted returns?

AAA currently has the higher Sharpe Ratio (2.36 vs 0.72), 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.