TRFM vs. THRO

Last updated Jun 24, 2026

TRFM (AAM Transformers ETF) and THRO (iShares U.S. Thematic Rotation Active ETF) are both exchange-traded funds - TRFM is a Technology Equities fund tracking the Pence Transformers Index - Benchmark TR Gross, while THRO is a Tactical Allocation fund actively managed by iShares. TRFM is passively managed, while THRO is actively managed. Over the past 3 years, TRFM returned 30.06%/yr vs 22.54%/yr for THRO. Their correlation of 0.87 suggests significant overlap in exposure. TRFM charges 0.49%/yr vs 0.60%/yr for THRO.

Performance

TRFM vs. THRO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AAM Transformers ETF (TRFM) and iShares U.S. Thematic Rotation Active ETF (THRO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TRFM achieves a 27.18% return, which is significantly higher than THRO's 10.10% return.

TRFM

• 1D: -3.18%
• 1M: 3.66%
• YTD: 27.18%
• 6M: 25.25%
• 1Y: 47.69%
• 3Y*: 30.06%
• 5Y*: —
• 10Y*: —

THRO

• 1D: -1.58%
• 1M: -0.59%
• YTD: 10.10%
• 6M: 8.78%
• 1Y: 23.17%
• 3Y*: 22.54%
• 5Y*: —
• 10Y*: —

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

TRFM vs. THRO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
TRFM AAM Transformers ETF	27.18%	25.76%	19.96%	44.71%	-9.92%
THRO iShares U.S. Thematic Rotation Active ETF	10.10%	15.04%	32.03%	24.40%	4.31%

Correlation

The correlation between TRFM and THRO is 0.87, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (All Time) Calculated using the full available price history since Jul 12, 2022	0.87

The correlation between TRFM and THRO has been stable across timeframes, ranging from 0.87 to 0.87 - a consistent structural relationship.

TRFM vs. THRO - Sectors Allocation Comparison

Sectors	TRFM	THRO
Technology	53.3%	43.9%
Consumer Cyclical	17.7%	9.0%
Communication Services	12.3%	8.9%
Industrials	7.2%	10.9%
Energy	3.5%	3.5%
Financial Services	2.8%	10.7%
Utilities	1.7%	0.1%
Basic Materials	1.2%	1.2%
Healthcare	0.2%	5.7%
Consumer Defensive	-	5.7%
Real Estate	-	-

Return for Risk

TRFM vs. THRO — Risk / Return Rank

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

TRFM

TRFM Risk / Return Rank: 65
TRFM Sharpe Ratio Rank: 65
TRFM Sortino Ratio Rank: 56
TRFM Omega Ratio Rank: 57
TRFM Calmar Ratio Rank: 77
TRFM Martin Ratio Rank: 70

THRO

THRO Risk / Return Rank: 50
THRO Sharpe Ratio Rank: 52
THRO Sortino Ratio Rank: 50
THRO Omega Ratio Rank: 48
THRO Calmar Ratio Rank: 45
THRO Martin Ratio Rank: 56

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.

TRFM vs. THRO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AAM Transformers ETF (TRFM) and iShares U.S. Thematic Rotation Active ETF (THRO). 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.

	TRFM	THRO	Difference
Sharpe ratio: Return per unit of total volatility	1.96	1.68	+0.28
Sortino ratio: Return per unit of downside risk	2.51	2.33	+0.17
Omega ratio: Gain probability vs. loss probability	1.33	1.30	+0.03
Calmar ratio: Return relative to maximum drawdown	3.69	2.14	+1.55
Martin ratio: Return relative to average drawdown	11.96	9.26	+2.70

TRFM vs. THRO - Sharpe Ratio Comparison

The current TRFM Sharpe Ratio is 1.96, which is comparable to the THRO Sharpe Ratio of 1.68. The chart below compares the historical Sharpe Ratios of TRFM and THRO, 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

TRFM vs. THRO - Drawdown Comparison

The maximum TRFM drawdown since its inception was -28.40%, which is greater than THRO's maximum drawdown of -26.54%. Use the drawdown chart below to compare losses from any high point for TRFM and THRO.

Drawdown Indicators

	TRFM	THRO	Difference
Max Drawdown Largest peak-to-trough decline	-28.40%	-26.54%	-1.86%
Max Drawdown (1Y) Largest decline over 1 year	-12.99%	-10.87%	-2.12%
Max Drawdown (3Y) Largest decline over 3 years	-28.40%	-19.07%	-9.33%
Current Drawdown Current decline from peak	-3.60%	-2.91%	-0.69%
Average Drawdown Average peak-to-trough decline	-6.59%	-6.64%	+0.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.00%	2.51%	+1.49%

Volatility

TRFM vs. THRO - Volatility Comparison

AAM Transformers ETF (TRFM) has a higher volatility of 11.33% compared to iShares U.S. Thematic Rotation Active ETF (THRO) at 5.67%. This indicates that TRFM's price experiences larger fluctuations and is considered to be riskier than THRO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TRFM	THRO	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.33%	5.67%	+5.66%
Volatility (6M) Calculated over the trailing 6-month period	19.71%	11.21%	+8.50%
Volatility (1Y) Calculated over the trailing 1-year period	24.43%	13.91%	+10.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.27%	18.78%	+8.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.27%	18.78%	+8.49%

TRFM vs. THRO - Expense Ratio Comparison

TRFM has a 0.49% expense ratio, which is lower than THRO's 0.60% expense ratio.

Dividends

TRFM vs. THRO - Dividend Comparison

TRFM's dividend yield for the trailing twelve months is around 0.13%, less than THRO's 0.26% yield.

Position	TTM	2025	2024	2023	2022
THRO iShares U.S. Thematic Rotation Active ETF	0.26%	0.15%	0.73%	0.55%	0.90%
TRFM AAM Transformers ETF	0.13%	0.17%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TRFM and THRO in my portfolio?

TRFM and THRO have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TRFM or THRO?

TRFM has higher volatility (11.33%) compared to THRO (5.67%). In terms of maximum drawdown, TRFM dropped -28.40% vs THRO's -26.54%.

Which ETF is better, TRFM or THRO?

On 3-year performance, TRFM leads with 30.06% vs 22.54% for THRO. On fees, TRFM is cheaper at 0.49% per year. On volatility, THRO has been the lower-risk option at 5.67%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TRFM or THRO?

Over the 3-year period, TRFM has performed better with a 30.06% return vs 22.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TRFM or THRO?

TRFM is cheaper with a 0.49% expense ratio, compared with 0.60% for THRO.

Which ETF pays a higher dividend yield, TRFM or THRO?

THRO has the higher dividend yield at 0.26%, compared with 0.13% for TRFM.

What is the main difference between TRFM and THRO?

TRFM is categorized as Technology Equities, while THRO is Tactical Allocation. They also come from different issuers: AAM and iShares. Their fees differ too: 0.49% for TRFM and 0.60% for THRO.

Which has better risk-adjusted returns?

TRFM currently has the higher Sharpe Ratio (1.96 vs 1.68), 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.