AAA vs IVV
AAA vs IVV
Alternative Access First Priority CLO Bond ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | AAA | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.03% | |
| AUM | $45M | $865.2B | |
| Dividend Yield | 4.90% | 1.09% | |
| Holdings | 32 | 508 | |
| YTD Return | +2.81% | +13.13% | |
| 1Y Return | +5.05% | +22.90% | |
| 3Y Return (annualized) | +6.02% | +21.08% | |
| 5Y Return (annualized) | +4.74% | +13.27% | |
| Volatility (annualized) | 1.5% | 15.1% | |
| Max Drawdown | -2.6% | -56.5% | |
| Fund Family | Alternative Access Funds, LLC | iShares by BlackRock (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 9, 2020 | May 15, 2000 |
AAA vs IVV Performance
Alternative Access First Priority CLO Bond ETF (AAA) is a ETF from Alternative Access Funds, LLC and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year AAA returned +5.05% while IVV returned +22.90%. Year to date, AAA is up 2.81% versus a gain of 13.13% for IVV.
Over three years, AAA compounded at +6.02% per year against +21.08% for IVV; over five years the annualized figures are +4.74% and +13.27% respectively. Across the full 6-year window we track, IVV has the edge at +7.02% annualized vs +4.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 1.5% for AAA. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -2.6% for AAA and -56.5% for IVV. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AAA charges 0.19% per year while IVV charges 0.03%. On a $10,000 position that is $19 vs $3 annually, a gap of $16 per year that compounds over a long holding period. On income, AAA currently yields 4.90% against 1.09% for IVV.
Holdings Overlap
AAA and IVV share 0 holdings out of 507 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, AAA or IVV?
AAA has an expense ratio of 0.19% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, AAA or IVV?
Over the past year AAA returned +5.05% vs +22.90% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (6 years), AAA annualized +4.06% vs +7.02% for IVV. Past performance does not guarantee future results.
Which is riskier, AAA or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 1.5% for AAA. Worst drawdown: AAA -2.6% vs IVV -56.5%.
Should I hold both AAA and IVV?
AAA and IVV have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AAA and IVV?
AAA and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, AAA or IVV?
AAA yields 4.90% while IVV yields 1.09%, so AAA currently pays the higher dividend yield.
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