WDAF vs. AAA

Last updated Jun 4, 2026

WDAF (WisdomTree Asia Defense Fund) and AAA (AAF First Priority CLO Bond ETF) are both exchange-traded funds - WDAF is a Aerospace & Defense fund tracking the WisdomTree Asia Defense Index, while AAA is a CLO fund actively managed by Alternative Access Funds LLC. WDAF is passively managed, while AAA is actively managed. At a correlation of -0.05, they often move in opposite directions. WDAF charges 0.45%/yr vs 0.25%/yr for AAA.

Performance

WDAF vs. AAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Asia Defense Fund (WDAF) 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, WDAF achieves a 11.85% return, which is significantly higher than AAA's 1.86% return.

WDAF

• 1D: -1.56%
• 1M: -13.31%
• YTD: 11.85%
• 6M: 16.15%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

AAA

• 1D: -0.22%
• 1M: 0.67%
• YTD: 1.86%
• 6M: 2.19%
• 1Y: 5.39%
• 3Y*: 6.50%
• 5Y*: 4.64%
• 10Y*: —

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

WDAF vs. AAA - Yearly Performance Comparison

	2026 (YTD)	2025
WDAF WisdomTree Asia Defense Fund	11.85%	-7.62%
AAA AAF First Priority CLO Bond ETF	1.86%	1.44%

Correlation

The correlation between WDAF and AAA is -0.05, 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 (All Time) Calculated using the full available price history since Sep 15, 2025	-0.05

Return for Risk

WDAF 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: 85
AAA Sharpe Ratio Rank: 71
AAA Sortino Ratio Rank: 87
AAA Omega Ratio Rank: 77
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.

WDAF vs. AAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Asia Defense Fund (WDAF) 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

	WDAF	AAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.36	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	2.05	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.15	1.93	-1.78

Drawdowns

WDAF vs. AAA - Drawdown Comparison

The maximum WDAF drawdown since its inception was -18.21%, which is greater than AAA's maximum drawdown of -2.63%. Use the drawdown chart below to compare losses from any high point for WDAF and AAA.

Drawdown Indicators

	WDAF	AAA	Difference
Max Drawdown Largest peak-to-trough decline	-18.21%	-2.63%	-15.58%
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	-16.06%	-0.22%	-15.84%
Average Drawdown Average peak-to-trough decline	-6.09%	-0.30%	-5.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.19%	—

Volatility

Volatility by Period

	WDAF	AAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.74%	—
Volatility (6M) Calculated over the trailing 6-month period	—	1.76%	—
Volatility (1Y) Calculated over the trailing 1-year period	32.10%	2.30%	+29.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	32.10%	2.28%	+29.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.10%	2.15%	+29.95%

WDAF vs. AAA - Expense Ratio Comparison

WDAF has a 0.45% expense ratio, which is higher than AAA's 0.25% expense ratio.

Dividends

WDAF vs. AAA - Dividend Comparison

WDAF's dividend yield for the trailing twelve months is around 0.12%, less than AAA's 4.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
AAA AAF First Priority CLO Bond ETF	4.90%	5.11%	6.17%	6.11%	2.78%	1.06%	0.32%
WDAF WisdomTree Asia Defense Fund	0.12%	0.13%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both WDAF and AAA in my portfolio?

WDAF and AAA have a correlation of -0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, WDAF 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, WDAF or AAA?

AAA is cheaper with a 0.25% expense ratio, compared with 0.45% for WDAF.

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

AAA has the higher dividend yield at 4.90%, compared with 0.12% for WDAF.

What is the main difference between WDAF and AAA?

WDAF is categorized as Aerospace & Defense, while AAA is CLO. They also come from different issuers: WisdomTree and Alternative Access Funds LLC. Their fees differ too: 0.45% for WDAF and 0.25% for AAA.