// Index Comparison

ACCE Defense & Aerospace vs ACCE Cybersecurity

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

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.

ACCE Cybersecurity →

Zero-trust adoption, cloud security, and identity protection. The cybersecurity spend cycle is structural, not cyclical.

Performance windows

Period	ACCE Defense & Aerospace	ACCE Cybersecurity	Spread
1M	-4.9%	+13.0%	-17.9%
3M	-11.3%	-1.9%	-9.4%
YTD	+2.1%	-3.1%	+5.2%
1Y	+2.1%	-3.1%	+5.2%
3Y	+2.1%	-3.1%	+5.2%
5Y	+2.1%	-3.1%	+5.2%
Inception	+2.1%	-3.1%	+5.2%

ACCE Defense & Aerospace — risk

Volatility 30d+22.3%

Volatility 90d+25.7%

Sharpe 90d0.23

Max drawdown-17.4%

Beta vs ITA0.47

ACCE Cybersecurity — risk

Volatility 30d+46.2%

Volatility 90d+42.2%

Sharpe 90d-0.13

Max drawdown-24.3%

Beta vs CIBR0.94

Constituent overlap

0 stocks held by both indices (out of 7 and 5)

Top sectors — ACCE Defense & Aerospace

Industrials100.0%

Top sectors — ACCE Cybersecurity

Technology100.0%

ACCE Verdict

ACCE Defense & Aerospace has outperformed ACCE Cybersecurity by 5.24 percentage points since inception, delivering 2.1% returns versus cybersecurity's -3.14% loss.

Defense shows superior risk management with 25.7% volatility and a positive 0.23 Sharpe ratio, while cybersecurity exhibits much higher volatility at 42.2% and a negative -0.13 Sharpe ratio. Defense also demonstrates better downside protection with a -17.4% maximum drawdown compared to cybersecurity's -24.3% decline.

Both indices target structural spending themes in government and enterprise security, but defense benefits from predictable multi-year budget cycles while cybersecurity faces more volatile adoption patterns despite its structural tailwinds.

Defense & Aerospace suits conservative growth investors seeking exposure to geopolitical themes with lower volatility and defensive characteristics, evidenced by its 0.47 beta. Cybersecurity appeals to aggressive growth investors willing to accept higher volatility for potential upside in the digital transformation theme, though current performance suggests patience is required. Defense offers better risk-adjusted returns for investors prioritizing capital preservation alongside thematic exposure.