// Index Comparison
ACCE Defense & Aerospace vs ACCE Quality Compounders
Head-to-head: performance, risk profile, and constituent overlap between two ACCE indices.
US
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.
US
ACCE Quality Compounders →
High-ROIC, wide-moat businesses compounding shareholder value through pricing power, network effects, and recurring revenue.
ACCE Defense & Aerospace — risk
Volatility 30d+22.3%
Volatility 90d+25.7%
Sharpe 90d0.23
Max drawdown-17.4%
Beta vs ITA0.47
ACCE Quality Compounders — risk
Volatility 30d+24.4%
Volatility 90d+23.5%
Sharpe 90d-2.08
Max drawdown-22.8%
Beta vs SPY0.56
Constituent overlap
0 stocks held by both indices (out of 7 and 6)
Top sectors — ACCE Defense & Aerospace
Industrials100.0%
Top sectors — ACCE Quality Compounders
Technology35.4%
Financial Services29.9%
Consumer Defensive19.4%
Healthcare15.4%
ACCE Verdict
ACCE Defense & Aerospace has outperformed Quality Compounders by a decisive 15.77 percentage points since inception, posting a 2.1% return versus Quality Compounders' -13.67% loss. Defense & Aerospace also demonstrates superior risk management with a -17.45% maximum drawdown compared to Quality Compounders' deeper -22.83% decline, though both indices show similar volatility levels around 24-26%.
Both strategies target companies with defensive characteristics and sustainable competitive advantages, but Defense & Aerospace benefits from government contract visibility while Quality Compounders relies on broader market appreciation of moat-driven businesses. The defense index's lower 0.47 beta versus Quality Compounders' 0.56 beta reflects its relative insulation from broader market swings.
Defense & Aerospace suits investors seeking sector-specific exposure to geopolitical themes and multi-year defense spending cycles, particularly those wanting lower market correlation. Quality Compounders appeals to long-term investors focused on business quality over near-term performance, though the current -2.08 Sharpe ratio signals significant headwinds for high-multiple quality names. Defense & Aerospace offers better risk-adjusted returns for investors comfortable with concentrated sector exposure over diversified quality plays.