VUG vs. AAA

Last updated Jun 9, 2026

VUG (Vanguard Growth ETF) and AAA (AAF First Priority CLO Bond ETF) are both exchange-traded funds - VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth Index, while AAA is a CLO fund actively managed by Alternative Access Funds LLC. VUG is passively managed, while AAA is actively managed. Over the past 5 years, VUG returned 14.33%/yr vs 4.62%/yr for AAA. At a 0.03 correlation, their price movements are largely independent. VUG charges 0.03%/yr vs 0.25%/yr for AAA.

Performance

VUG vs. AAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Growth ETF (VUG) 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, VUG achieves a 6.14% return, which is significantly higher than AAA's 1.84% return.

VUG

• 1D: 0.33%
• 1M: -0.73%
• YTD: 6.14%
• 6M: 5.11%
• 1Y: 23.11%
• 3Y*: 24.71%
• 5Y*: 14.33%
• 10Y*: 17.95%

AAA

• 1D: 0.06%
• 1M: 0.49%
• YTD: 1.84%
• 6M: 2.37%
• 1Y: 5.15%
• 3Y*: 6.44%
• 5Y*: 4.62%
• 10Y*: —

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

VUG vs. AAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
VUG Vanguard Growth ETF	6.14%	19.40%	32.69%	46.83%	-33.16%	27.35%	11.66%
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 VUG and AAA is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.11
Correlation (3Y) Calculated over the trailing 3-year period	0.08
Correlation (5Y) Calculated over the trailing 5-year period	0.04
Correlation (All Time) Calculated using the full available price history since Sep 10, 2020	0.03

Return for Risk

VUG vs. AAA — Risk / Return Rank

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

VUG

VUG Risk / Return Rank: 40
VUG Sharpe Ratio Rank: 45
VUG Sortino Ratio Rank: 43
VUG Omega Ratio Rank: 44
VUG Calmar Ratio Rank: 31
VUG Martin Ratio Rank: 35

AAA

AAA Risk / Return Rank: 88
AAA Sharpe Ratio Rank: 77
AAA Sortino Ratio Rank: 90
AAA Omega Ratio Rank: 82
AAA Calmar Ratio Rank: 96
AAA Martin Ratio Rank: 95

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.

VUG vs. AAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Growth ETF (VUG) 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.

	VUG	AAA	Difference
Sharpe ratio: Return per unit of total volatility	1.43	2.25	-0.82
Sortino ratio: Return per unit of downside risk	1.95	3.84	-1.89
Omega ratio: Gain probability vs. loss probability	1.25	1.44	-0.19
Calmar ratio: Return relative to maximum drawdown	1.40	8.58	-7.18
Martin ratio: Return relative to average drawdown	4.90	26.34	-21.45
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VUG vs. AAA - Sharpe Ratio Comparison

The current VUG Sharpe Ratio is 1.43, which is lower than the AAA Sharpe Ratio of 2.25. The chart below compares the historical Sharpe Ratios of VUG 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

	VUG	AAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.43	2.25	-0.82
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.65	2.04	-1.39
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.84	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.61	1.92	-1.31

Drawdowns

VUG vs. AAA - Drawdown Comparison

The maximum VUG drawdown since its inception was -50.68%, which is greater than AAA's maximum drawdown of -2.63%. Use the drawdown chart below to compare losses from any high point for VUG and AAA.

Drawdown Indicators

	VUG	AAA	Difference
Max Drawdown Largest peak-to-trough decline	-50.68%	-2.63%	-48.05%
Max Drawdown (1Y) Largest decline over 1 year	-16.53%	-0.60%	-15.93%
Max Drawdown (3Y) Largest decline over 3 years	-22.85%	-2.40%	-20.45%
Max Drawdown (5Y) Largest decline over 5 years	-35.61%	-2.63%	-32.98%
Max Drawdown (10Y) Largest decline over 10 years	-35.61%	—	—
Current Drawdown Current decline from peak	-4.52%	-0.24%	-4.28%
Average Drawdown Average peak-to-trough decline	-7.09%	-0.30%	-6.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.73%	0.20%	+4.53%

Volatility

VUG vs. AAA - Volatility Comparison

Vanguard Growth ETF (VUG) has a higher volatility of 5.17% compared to AAF First Priority CLO Bond ETF (AAA) at 0.73%. This indicates that VUG'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

	VUG	AAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.17%	0.73%	+4.44%
Volatility (6M) Calculated over the trailing 6-month period	12.68%	1.77%	+10.91%
Volatility (1Y) Calculated over the trailing 1-year period	16.25%	2.30%	+13.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.28%	2.28%	+20.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.48%	2.15%	+19.33%

VUG vs. AAA - Expense Ratio Comparison

VUG 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

VUG vs. AAA - Dividend Comparison

VUG's dividend yield for the trailing twelve months is around 0.38%, 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%
VUG Vanguard Growth ETF	0.38%	0.41%	0.47%	0.58%	0.70%	0.48%	0.66%	0.95%	1.32%	1.14%	1.39%	1.30%

Frequently Asked Questions

Can I hold both VUG and AAA in my portfolio?

VUG and AAA have a correlation of 0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VUG or AAA?

VUG has higher volatility (5.17%) compared to AAA (0.73%). In terms of maximum drawdown, VUG dropped -50.68% vs AAA's -2.63%.

Which ETF is better, VUG or AAA?

On 5-year performance, VUG leads with 14.33% vs 4.62% for AAA. On fees, VUG 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.

Which ETF has performed better, VUG or AAA?

Over the 5-year period, VUG has performed better with a 14.33% return vs 4.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VUG or AAA?

VUG is cheaper with a 0.03% expense ratio, compared with 0.25% for AAA.

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

AAA has the higher dividend yield at 4.90%, compared with 0.38% for VUG.

What is the main difference between VUG and AAA?

VUG is categorized as Large Cap Growth Equities, while AAA is CLO. They also come from different issuers: Vanguard and Alternative Access Funds LLC. Their fees differ too: 0.03% for VUG and 0.25% for AAA.

Which has better risk-adjusted returns?

AAA currently has the higher Sharpe Ratio (2.25 vs 1.43), 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.