TMB vs. AAA

Last updated Jun 5, 2026

TMB (Thornburg Multi Sector Bond ETF) and AAA (AAF First Priority CLO Bond ETF) are both exchange-traded funds - TMB is a Multisector Bonds fund actively managed by Thornburg, while AAA is a CLO fund actively managed by Alternative Access Funds LLC. Both are actively managed. At a 0.29 correlation, their price movements are largely independent. TMB charges 0.55%/yr vs 0.25%/yr for AAA.

Performance

TMB vs. AAA - Performance Comparison

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

Returns By Period

TMB

• 1D: 0.17%
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

AAA

• 1D: 0.15%
• 1M: 0.96%
• YTD: 2.01%
• 6M: 2.48%
• 1Y: 5.33%
• 3Y*: 6.57%
• 5Y*: 4.67%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

TMB vs. AAA - Yearly Performance Comparison

	2026 (YTD)
TMB Thornburg Multi Sector Bond ETF	0.34%
AAA AAF First Priority CLO Bond ETF	0.58%

Correlation

The correlation between TMB and AAA is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since May 27, 2026	0.29

Return for Risk

TMB 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: 86
AAA Sharpe Ratio Rank: 73
AAA Sortino Ratio Rank: 88
AAA Omega Ratio Rank: 78
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.

TMB vs. AAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Thornburg Multi Sector Bond ETF (TMB) 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

	TMB	AAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.33	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	2.06	—
Sharpe Ratio (All Time) Calculated using the full available price history	5.77	1.94	+3.82

Drawdowns

TMB vs. AAA - Drawdown Comparison

The maximum TMB drawdown since its inception was -0.24%, smaller than the maximum AAA drawdown of -2.63%. Use the drawdown chart below to compare losses from any high point for TMB and AAA.

Drawdown Indicators

	TMB	AAA	Difference
Max Drawdown Largest peak-to-trough decline	-0.24%	-2.63%	+2.39%
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	-0.06%	-0.07%	+0.01%
Average Drawdown Average peak-to-trough decline	-0.06%	-0.30%	+0.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.19%	—

Volatility

Volatility by Period

	TMB	AAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.72%	—
Volatility (6M) Calculated over the trailing 6-month period	—	1.77%	—
Volatility (1Y) Calculated over the trailing 1-year period	2.46%	2.30%	+0.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.46%	2.28%	+0.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.46%	2.15%	+0.31%

TMB vs. AAA - Expense Ratio Comparison

TMB has a 0.55% expense ratio, which is higher than AAA's 0.25% expense ratio.

Dividends

TMB vs. AAA - Dividend Comparison

TMB's dividend yield for the trailing twelve months is around 0.36%, less than AAA's 4.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
AAA AAF First Priority CLO Bond ETF	4.89%	5.11%	6.17%	6.11%	2.78%	1.06%	0.32%
TMB Thornburg Multi Sector Bond ETF	0.36%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TMB and AAA in my portfolio?

TMB and AAA have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, TMB or AAA?

On fees, AAA is cheaper at 0.25% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, TMB or AAA?

AAA is cheaper with a 0.25% expense ratio, compared with 0.55% for TMB.

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

AAA has the higher dividend yield at 4.89%, compared with 0.36% for TMB.

What is the main difference between TMB and AAA?

TMB is categorized as Multisector Bonds, while AAA is CLO. They also come from different issuers: Thornburg and Alternative Access Funds LLC. Their fees differ too: 0.55% for TMB and 0.25% for AAA.