WCME vs. AAA

Last updated Jul 12, 2026

WCME (First Trust WCM Developing World Equity ETF) and AAA (Alternative Access First Priority CLO Bond ETF) are both exchange-traded funds - WCME is a Emerging Markets Equities fund tracking the Actively Managed, while AAA is a CLO fund actively managed by Alternative Access Funds LLC. WCME is passively managed, while AAA is actively managed. Over the past year, WCME returned 26.41% vs 4.72% for AAA. At a 0.06 correlation, their price movements are largely independent. WCME charges 0.95%/yr vs 0.25%/yr for AAA.

Performance

WCME vs. AAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust WCM Developing World Equity ETF (WCME) and Alternative Access 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, WCME achieves a 13.82% return, which is significantly higher than AAA's 2.11% return.

WCME

• 1D: 0.87%
• 1M: 1.48%
• 6M: 7.84%
• YTD: 13.82%
• 1Y: 26.41%
• 3Y*: —
• 5Y*: —
• 10Y*: —

AAA

• 1D: -0.02%
• 1M: 0.41%
• 6M: 2.09%
• YTD: 2.11%
• 1Y: 4.72%
• 3Y*: 6.22%
• 5Y*: 4.66%
• 10Y*: —

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

WCME vs. AAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
WCME First Trust WCM Developing World Equity ETF	13.82%	35.19%	-10.72%
AAA Alternative Access First Priority CLO Bond ETF	2.11%	4.92%	1.54%

Correlation

The correlation between WCME and AAA is 0.08, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.08
Correlation (All Time) Calculated using the full available price history since Oct 7, 2024	0.06

Return for Risk

WCME vs. AAA — Risk / Return Rank

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

WCME

WCME Risk / Return Rank: 41
WCME Sharpe Ratio Rank: 41
WCME Sortino Ratio Rank: 37
WCME Omega Ratio Rank: 41
WCME Calmar Ratio Rank: 43
WCME Martin Ratio Rank: 44

AAA

AAA Risk / Return Rank: 90
AAA Sharpe Ratio Rank: 81
AAA Sortino Ratio Rank: 91
AAA Omega Ratio Rank: 84
AAA Calmar Ratio Rank: 97
AAA Martin Ratio Rank: 96

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.

WCME vs. AAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust WCM Developing World Equity ETF (WCME) and Alternative Access 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.

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.

	WCME	AAA	Difference
Sharpe ratio: Return per unit of total volatility	1.15	2.04	-0.89
Sortino ratio: Return per unit of downside risk	1.61	3.48	-1.87
Omega ratio: Gain probability vs. loss probability	1.22	1.40	-0.18
Calmar ratio: Return relative to maximum drawdown	1.69	7.87	-6.19
Martin ratio: Return relative to average drawdown	5.64	26.77	-21.13

WCME vs. AAA - Sharpe Ratio Comparison

The current WCME Sharpe Ratio is 1.15, which is lower than the AAA Sharpe Ratio of 2.04. The chart below compares the historical Sharpe Ratios of WCME 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.

Drawdowns

WCME vs. AAA - Drawdown Comparison

The maximum WCME drawdown since its inception was -15.64%, which is greater than AAA's maximum drawdown of -2.63%. Use the drawdown chart below to compare losses from any high point for WCME and AAA.

Drawdown Indicators

	WCME	AAA	Difference
Max Drawdown Largest peak-to-trough decline	-15.64%	-2.63%	-13.01%
Max Drawdown (1Y) Largest decline over 1 year	-15.64%	-0.60%	-15.04%
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	-3.29%	-0.37%	-2.92%
Average Drawdown Average peak-to-trough decline	-3.72%	-0.31%	-3.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.67%	0.18%	+4.49%

Volatility

WCME vs. AAA - Volatility Comparison

First Trust WCM Developing World Equity ETF (WCME) has a higher volatility of 9.60% compared to Alternative Access First Priority CLO Bond ETF (AAA) at 0.79%. This indicates that WCME'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

	WCME	AAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.60%	0.79%	+8.81%
Volatility (6M) Calculated over the trailing 6-month period	20.18%	1.74%	+18.44%
Volatility (1Y) Calculated over the trailing 1-year period	22.88%	2.32%	+20.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.03%	2.31%	+18.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.03%	2.15%	+18.88%

WCME vs. AAA - Expense Ratio Comparison

WCME has a 0.95% expense ratio, which is higher than AAA's 0.25% expense ratio.

Dividends

WCME vs. AAA - Dividend Comparison

WCME's dividend yield for the trailing twelve months is around 0.34%, less than AAA's 4.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
AAA Alternative Access First Priority CLO Bond ETF	4.82%	5.11%	6.17%	6.11%	2.78%	1.06%	0.32%
WCME First Trust WCM Developing World Equity ETF	0.34%	0.68%	0.53%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both WCME and AAA in my portfolio?

WCME and AAA have a correlation of 0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, WCME or AAA?

WCME has higher volatility (9.60%) compared to AAA (0.79%). In terms of maximum drawdown, WCME dropped -15.64% vs AAA's -2.63%.

Which ETF is better, WCME or AAA?

On 1-year performance, WCME leads with 26.41% vs 4.72% for AAA. On fees, AAA is cheaper at 0.25% per year. On volatility, AAA has been the lower-risk option at 0.79%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, WCME or AAA?

Over the 1-year period, WCME has performed better with a 26.41% return vs 4.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, WCME or AAA?

AAA is cheaper with a 0.25% expense ratio, compared with 0.95% for WCME.

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

AAA has the higher dividend yield at 4.82%, compared with 0.34% for WCME.

What is the main difference between WCME and AAA?

WCME is categorized as Emerging Markets Equities, while AAA is CLO. They also come from different issuers: First Trust and Alternative Access Funds LLC. Their fees differ too: 0.95% for WCME and 0.25% for AAA.

Which has better risk-adjusted returns?

AAA currently has the higher Sharpe Ratio (2.04 vs 1.15), 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.