VO vs. AAA
VO (Vanguard Mid-Cap ETF) and AAA (AAF First Priority CLO Bond ETF) are both exchange-traded funds - VO is a Mid Cap Blend Equities fund tracking the CRSP US Mid Cap Index, while AAA is a CLO fund actively managed by Alternative Access Funds LLC. VO is passively managed, while AAA is actively managed. Over the past 5 years, VO returned 7.59%/yr vs 4.62%/yr for AAA. At a 0.03 correlation, their price movements are largely independent. VO charges 0.03%/yr vs 0.25%/yr for AAA.
Performance
VO vs. AAA - Performance Comparison
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Returns By Period
In the year-to-date period, VO achieves a 8.60% return, which is significantly higher than AAA's 1.84% return.
VO
- 1D
- -0.04%
- 1M
- 1.75%
- YTD
- 8.60%
- 6M
- 8.43%
- 1Y
- 16.32%
- 3Y*
- 15.78%
- 5Y*
- 7.59%
- 10Y*
- 11.44%
AAA
- 1D
- 0.06%
- 1M
- 0.49%
- YTD
- 1.84%
- 6M
- 2.37%
- 1Y
- 5.15%
- 3Y*
- 6.44%
- 5Y*
- 4.62%
- 10Y*
- —
VO vs. AAA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
VO Vanguard Mid-Cap ETF | 8.60% | 11.62% | 15.31% | 16.03% | -18.73% | 24.70% | 18.45% |
AAA AAF First Priority CLO Bond ETF | 1.84% | 4.92% | 6.85% | 8.94% | 0.15% | 0.86% | 0.32% |
Correlation
The correlation between VO and AAA is 0.12, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.12 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.07 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.05 |
Correlation (All Time) Calculated using the full available price history since Sep 10, 2020 | 0.03 |
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Return for Risk
VO vs. AAA — Risk / Return Rank
VO
AAA
VO vs. AAA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mid-Cap ETF (VO) 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.
| VO | AAA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.94 | ||
| Sortino ratioReturn per unit of downside risk | -1.95 | ||
| Omega ratioGain probability vs. loss probability | 1.23 | 1.44 | -0.21 |
| Calmar ratioReturn relative to maximum drawdown | 2.01 | 8.58 | -6.57 |
| Martin ratioReturn relative to average drawdown | 7.62 | 26.34 | -18.73 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VO | AAA | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.31 | 2.25 | -0.94 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.43 | 2.04 | -1.61 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.61 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.50 | 1.92 | -1.42 |
Drawdowns
VO vs. AAA - Drawdown Comparison
The maximum VO drawdown since its inception was -58.87%, which is greater than AAA's maximum drawdown of -2.63%. Use the drawdown chart below to compare losses from any high point for VO and AAA.
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Drawdown Indicators
| VO | AAA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -58.87% | -2.63% | -56.24% |
Max Drawdown (1Y)Largest decline over 1 year | -8.17% | -0.60% | -7.57% |
Max Drawdown (3Y)Largest decline over 3 years | -19.02% | -2.40% | -16.62% |
Max Drawdown (5Y)Largest decline over 5 years | -27.57% | -2.63% | -24.94% |
Max Drawdown (10Y)Largest decline over 10 years | -39.37% | — | — |
Current DrawdownCurrent decline from peak | -2.10% | -0.24% | -1.86% |
Average DrawdownAverage peak-to-trough decline | -7.86% | -0.30% | -7.56% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.15% | 0.20% | +1.95% |
Volatility
VO vs. AAA - Volatility Comparison
Vanguard Mid-Cap ETF (VO) has a higher volatility of 3.51% compared to AAF First Priority CLO Bond ETF (AAA) at 0.73%. This indicates that VO'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.
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Volatility by Period
| VO | AAA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.51% | 0.73% | +2.78% |
Volatility (6M)Calculated over the trailing 6-month period | 9.46% | 1.77% | +7.69% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.51% | 2.30% | +10.21% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.62% | 2.28% | +15.34% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.96% | 2.15% | +16.81% |
VO vs. AAA - Expense Ratio Comparison
VO has a 0.03% expense ratio, which is lower than AAA's 0.25% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VO vs. AAA - Dividend Comparison
VO's dividend yield for the trailing twelve months is around 1.38%, less than AAA's 4.90% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAA AAF First Priority CLO Bond ETF | 4.90% | 5.11% | 6.17% | 6.11% | 2.78% | 1.06% | 0.32% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VO Vanguard Mid-Cap ETF | 1.38% | 1.52% | 1.49% | 1.52% | 1.60% | 1.12% | 1.45% | 1.48% | 1.82% | 1.35% | 1.45% | 1.47% |
Frequently Asked Questions
VO and AAA have a correlation of 0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VO has higher volatility (3.51%) compared to AAA (0.73%). In terms of maximum drawdown, VO dropped -58.87% vs AAA's -2.63%.
On 5-year performance, VO leads with 7.59% vs 4.62% for AAA. On fees, VO is cheaper at 0.03% per year. On volatility, AAA has been the lower-risk option at 0.73%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VO has performed better with a 7.59% return vs 4.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VO is cheaper with a 0.03% expense ratio, compared with 0.25% for AAA.
AAA has the higher dividend yield at 4.90%, compared with 1.38% for VO.
VO is categorized as Mid Cap Blend Equities, while AAA is CLO. They also come from different issuers: Vanguard and Alternative Access Funds LLC. Their fees differ too: 0.03% for VO and 0.25% for AAA.
AAA currently has the higher Sharpe Ratio (2.25 vs 1.31), 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.
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