AAA vs VTI
AAA vs VTI
Alternative Access First Priority CLO Bond ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | AAA | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.03% | |
| AUM | $45M | $663.5B | |
| Dividend Yield | 4.90% | 1.07% | |
| Holdings | 32 | 3,543 | |
| YTD Return | +2.91% | +13.57% | |
| 1Y Return | +4.94% | +24.23% | |
| 3Y Return (annualized) | +6.06% | +20.73% | |
| 5Y Return (annualized) | +4.76% | +12.24% | |
| Volatility (annualized) | 1.5% | 15.3% | |
| Max Drawdown | -2.6% | -56.6% | |
| Fund Family | Alternative Access Funds, LLC | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 9, 2020 | May 24, 2001 |
AAA vs VTI Performance
Alternative Access First Priority CLO Bond ETF (AAA) is a ETF from Alternative Access Funds, LLC and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year AAA returned +4.94% while VTI returned +24.23%. Year to date, AAA is up 2.91% versus a gain of 13.57% for VTI.
Over three years, AAA compounded at +6.06% per year against +20.73% for VTI; over five years the annualized figures are +4.76% and +12.24% respectively. Across the full 6-year window we track, VTI has the edge at +8.12% annualized vs +4.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AAA charges 0.19% per year while VTI 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 1.07% for VTI.
Holdings Overlap
AAA and VTI share 0 holdings out of 2785 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 VTI?
AAA has an expense ratio of 0.19% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, AAA or VTI?
Over the past year AAA returned +4.94% vs +24.23% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (6 years), AAA annualized +4.08% vs +8.12% for VTI. Past performance does not guarantee future results.
Which is riskier, AAA or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 1.5% for AAA. Worst drawdown: AAA -2.6% vs VTI -56.6%.
Should I hold both AAA and VTI?
AAA and VTI have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AAA and VTI?
AAA and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2785 unique securities.
Which pays a higher dividend, AAA or VTI?
AAA yields 4.90% while VTI yields 1.07%, so AAA currently pays the higher dividend yield.
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