// Index Comparison

ACCE AI Infrastructure vs ACCE Defense & Aerospace

Head-to-head: performance, risk profile, and constituent overlap between two ACCE indices.

Companies building the AI compute, data, and software layer that powers artificial intelligence. This index captures firms across the AI infrastructure stack: semiconductor companies designing GPUs and AI accelerators like NVIDIA and AMD, cloud infrastructure providers scaling AI workloads, networking specialists building high-bandwidth interconnects for data centers, and AI-native software platforms enabling machine learning operations. From chips to cloud to the applications reshaping every industry, these companies form the foundation layer that makes AI possible. The index focuses on US-listed companies deriving over 30% of revenue or strategic growth from AI infrastructure, excluding pure consumer AI applications and generic enterprise software with basic AI features.

ACCE Defense & Aerospace →

Defense contractors and tier-1 suppliers with >40% defense revenue exposure. Focuses on prime contractors, subsystem suppliers, and munitions companies benefiting from multi-year budget cycles and replenishment demand.

Performance windows

Period	ACCE AI Infrastructure	ACCE Defense & Aerospace	Spread
1M	+31.4%	-4.9%	+36.3%
3M	+11.4%	-11.3%	+22.7%
YTD	+11.4%	+2.1%	+9.3%
1Y	+11.4%	+2.1%	+9.3%
3Y	+11.4%	+2.1%	+9.3%
5Y	+11.4%	+2.1%	+9.3%
Inception	+11.4%	+2.1%	+9.3%

ACCE AI Infrastructure — risk

Volatility 30d+30.6%

Volatility 90d+26.6%

Sharpe 90d1.30

Max drawdown-16.5%

Beta vs AIQ1.57

ACCE Defense & Aerospace — risk

Volatility 30d+22.3%

Volatility 90d+25.7%

Sharpe 90d0.23

Max drawdown-17.4%

Beta vs ITA0.47

Constituent overlap

0 stocks held by both indices (out of 11 and 7)

Top sectors — ACCE AI Infrastructure

Technology70.2%

Communication Services27.6%

Consumer Cyclical2.2%

Top sectors — ACCE Defense & Aerospace

Industrials100.0%

ACCE Verdict

ACCE AI Infrastructure has crushed Defense & Aerospace since inception, delivering 11.39% returns versus just 2.1% for the defense index—a massive 940 basis point outperformance that highlights AI's transformative momentum over traditional defense spending cycles.

Both indices carry similar volatility profiles around 26%, but AI Infrastructure's superior 1.30 Sharpe ratio versus Defense's anemic 0.23 shows dramatically better risk-adjusted returns despite comparable drawdowns in the mid-to-high teens.

These indices share virtually no overlap, representing entirely different investment philosophies: AI Infrastructure captures the explosive growth of companies building tomorrow's digital backbone, while Defense & Aerospace focuses on established contractors tied to government budget cycles and geopolitical tensions.

AI Infrastructure suits growth-oriented investors willing to accept higher beta exposure (1.57 vs 0.47) for access to the secular AI buildout theme. The index's 30%+ revenue threshold ensures meaningful AI exposure rather than tangential plays. Defense & Aerospace appeals to investors seeking lower-beta exposure to government spending and defense modernization, but the underperformance versus benchmarks and poor risk-adjusted returns make it a questionable diversification play. For thematic exposure with actual alpha generation, AI Infrastructure wins decisively.