AIRR vs. ARCC

Last updated Jun 14, 2026

AIRR (First Trust RBA American Industrial Renaissance ETF) is Building & Construction fund tracking the Richard Bernstein Advisors American Industrial Renaissance Index, while ARCC (Ares Capital Corporation) is a stock. Over the past 10 years, AIRR returned 22.05%/yr vs 13.20%/yr for ARCC. At a 0.47 correlation, their price movements are largely independent.

Performance

AIRR vs. ARCC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust RBA American Industrial Renaissance ETF (AIRR) and Ares Capital Corporation (ARCC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AIRR achieves a 31.74% return, which is significantly higher than ARCC's -2.20% return. Over the past 10 years, AIRR has outperformed ARCC with an annualized return of 22.05%, while ARCC has yielded a comparatively lower 13.20% annualized return.

AIRR

• 1D: 0.83%
• 1M: -1.26%
• YTD: 31.74%
• 6M: 28.77%
• 1Y: 67.12%
• 3Y*: 35.29%
• 5Y*: 25.46%
• 10Y*: 22.05%

ARCC

• 1D: 1.00%
• 1M: 1.90%
• YTD: -2.20%
• 6M: -2.87%
• 1Y: -3.87%
• 3Y*: 10.27%
• 5Y*: 9.04%
• 10Y*: 13.20%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AIRR vs. ARCC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AIRR First Trust RBA American Industrial Renaissance ETF	31.74%	27.92%	33.45%	31.43%	-2.08%	33.01%	17.17%	33.97%	-20.57%	16.28%
ARCC Ares Capital Corporation	-2.20%	1.07%	19.78%	20.03%	-3.84%	36.14%	0.86%	31.30%	8.81%	4.50%

Correlation

The correlation between AIRR and ARCC is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.49
Correlation (10Y) Calculated over the trailing 10-year period	0.47
Correlation (All Time) Calculated using the full available price history since Mar 11, 2014	0.47

The correlation between AIRR and ARCC shifts across timeframes, from 0.35 (1 year) to 0.49 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

AIRR vs. ARCC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AIRR

AIRR Risk / Return Rank: 86
AIRR Sharpe Ratio Rank: 88
AIRR Sortino Ratio Rank: 83
AIRR Omega Ratio Rank: 78
AIRR Calmar Ratio Rank: 91
AIRR Martin Ratio Rank: 90

ARCC

ARCC Risk / Return Rank: 31
ARCC Sharpe Ratio Rank: 31
ARCC Sortino Ratio Rank: 26
ARCC Omega Ratio Rank: 26
ARCC Calmar Ratio Rank: 35
ARCC Martin Ratio Rank: 35

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AIRR vs. ARCC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust RBA American Industrial Renaissance ETF (AIRR) and Ares Capital Corporation (ARCC). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AIRR	ARCC	Difference
Sharpe ratio: Return per unit of total volatility	2.50	-0.27	+2.78
Sortino ratio: Return per unit of downside risk	3.22	-0.26	+3.48
Omega ratio: Gain probability vs. loss probability	1.40	0.97	+0.43
Calmar ratio: Return relative to maximum drawdown	5.01	-0.26	+5.27
Martin ratio: Return relative to average drawdown	18.33	-0.47	+18.81

AIRR vs. ARCC - Sharpe Ratio Comparison

The current AIRR Sharpe Ratio is 2.50, which is higher than the ARCC Sharpe Ratio of -0.27. The chart below compares the historical Sharpe Ratios of AIRR and ARCC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AIRR vs. ARCC - Drawdown Comparison

The maximum AIRR drawdown since its inception was -42.37%, smaller than the maximum ARCC drawdown of -79.36%. Use the drawdown chart below to compare losses from any high point for AIRR and ARCC.

Drawdown Indicators

	AIRR	ARCC	Difference
Max Drawdown Largest peak-to-trough decline	-42.37%	-79.36%	+36.99%
Max Drawdown (1Y) Largest decline over 1 year	-13.09%	-19.35%	+6.26%
Max Drawdown (3Y) Largest decline over 3 years	-27.95%	-19.35%	-8.60%
Max Drawdown (5Y) Largest decline over 5 years	-27.95%	-21.76%	-6.19%
Max Drawdown (10Y) Largest decline over 10 years	-42.37%	-56.77%	+14.40%
Current Drawdown Current decline from peak	-1.89%	-10.98%	+9.09%
Average Drawdown Average peak-to-trough decline	-7.48%	-9.10%	+1.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.57%	10.68%	-7.11%

Volatility

AIRR vs. ARCC - Volatility Comparison

First Trust RBA American Industrial Renaissance ETF (AIRR) has a higher volatility of 9.32% compared to Ares Capital Corporation (ARCC) at 3.72%. This indicates that AIRR's price experiences larger fluctuations and is considered to be riskier than ARCC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AIRR	ARCC	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.32%	3.72%	+5.60%
Volatility (6M) Calculated over the trailing 6-month period	20.81%	14.83%	+5.98%
Volatility (1Y) Calculated over the trailing 1-year period	26.19%	18.48%	+7.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.45%	19.96%	+5.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.36%	25.58%	+0.78%

Dividends

AIRR vs. ARCC - Dividend Comparison

AIRR's dividend yield for the trailing twelve months is around 0.13%, less than ARCC's 9.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AIRR First Trust RBA American Industrial Renaissance ETF	0.13%	0.19%	0.18%	0.23%	0.12%	0.05%	0.10%	0.20%	0.43%	0.30%	0.08%	0.47%
ARCC Ares Capital Corporation	7.48%	9.49%	8.77%	9.59%	10.12%	7.65%	9.47%	9.01%	9.88%	9.67%	9.22%	11.02%

Frequently Asked Questions

Can I hold both AIRR and ARCC in my portfolio?

AIRR and ARCC have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AIRR or ARCC?

AIRR has higher volatility (9.32%) compared to ARCC (3.72%). In terms of maximum drawdown, AIRR dropped -42.37% vs ARCC's -79.36%.

Which has better risk-adjusted returns?

AIRR currently has the higher Sharpe Ratio (2.50 vs -0.27), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.