ARCC vs. BBDC
ARCC (Ares Capital Corporation) and BBDC (Barings BDC, Inc.) are both stocks. Both are in the Financial Services sector — ARCC in Asset Management, BBDC in Credit Services. Over the past 5 years, ARCC returned 9.04%/yr vs 6.45%/yr for BBDC. A 0.56 correlation means they provide meaningful diversification when combined.
Performance
ARCC vs. BBDC - Performance Comparison
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Returns By Period
In the year-to-date period, ARCC achieves a -2.20% return, which is significantly higher than BBDC's -2.86% return.
ARCC
- 1D
- 1.00%
- 1M
- 1.69%
- YTD
- -2.20%
- 6M
- -2.87%
- 1Y
- -3.87%
- 3Y*
- 10.27%
- 5Y*
- 9.04%
- 10Y*
- 13.20%
BBDC
- 1D
- 0.00%
- 1M
- 0.43%
- YTD
- -2.86%
- 6M
- -1.25%
- 1Y
- 4.66%
- 3Y*
- 14.63%
- 5Y*
- 6.45%
- 10Y*
- —
ARCC vs. BBDC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | -2.20% | 1.07% | 19.78% | 20.03% | -3.84% | 36.14% | 0.86% | 31.30% | -5.32% |
BBDC Barings BDC, Inc. | -2.86% | 8.84% | 23.86% | 18.53% | -18.59% | 29.31% | -3.48% | 20.40% | -9.56% |
Correlation
The correlation between ARCC and BBDC is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.75 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.66 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.64 |
Correlation (All Time) Calculated using the full available price history since Aug 3, 2018 | 0.56 |
The correlation between ARCC and BBDC shifts across timeframes, from 0.56 (all time) to 0.75 (1 year), reflecting how their relationship changes across market environments.
Fundamentals
ARCC:
$13.83B
BBDC:
$878.49M
ARCC:
$1.63
BBDC:
$0.66
ARCC:
11.81
BBDC:
12.71
ARCC:
1.77
BBDC:
0.02
ARCC:
5.16
BBDC:
5.06
ARCC:
0.98
BBDC:
0.76
ARCC:
$2.63B
BBDC:
$174.30M
ARCC:
$1.86B
BBDC:
$149.47M
ARCC:
$2.05B
BBDC:
$90.27M
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Return for Risk
ARCC vs. BBDC — Risk / Return Rank
ARCC
BBDC
ARCC vs. BBDC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Ares Capital Corporation (ARCC) and Barings BDC, Inc. (BBDC). 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.
| ARCC | BBDC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.50 | ||
| Sortino ratioReturn per unit of downside risk | -0.70 | ||
| Omega ratioGain probability vs. loss probability | 0.97 | 1.05 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | -0.26 | 0.33 | -0.60 |
| Martin ratioReturn relative to average drawdown | -0.47 | 0.73 | -1.21 |
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Drawdowns
ARCC vs. BBDC - Drawdown Comparison
The maximum ARCC drawdown since its inception was -79.36%, which is greater than BBDC's maximum drawdown of -48.45%. Use the drawdown chart below to compare losses from any high point for ARCC and BBDC.
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Drawdown Indicators
| ARCC | BBDC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -79.36% | -48.45% | -30.91% |
Max Drawdown (1Y)Largest decline over 1 year | -19.35% | -12.28% | -7.07% |
Max Drawdown (3Y)Largest decline over 3 years | -19.35% | -24.51% | +5.16% |
Max Drawdown (5Y)Largest decline over 5 years | -21.76% | -27.55% | +5.79% |
Max Drawdown (10Y)Largest decline over 10 years | -56.77% | — | — |
Current DrawdownCurrent decline from peak | -10.98% | -6.42% | -4.56% |
Average DrawdownAverage peak-to-trough decline | -9.10% | -7.98% | -1.12% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.68% | 5.59% | +5.09% |
Volatility
ARCC vs. BBDC - Volatility Comparison
The current volatility for Ares Capital Corporation (ARCC) is 3.72%, while Barings BDC, Inc. (BBDC) has a volatility of 6.34%. This indicates that ARCC experiences smaller price fluctuations and is considered to be less risky than BBDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ARCC | BBDC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.72% | 6.34% | -2.62% |
Volatility (6M)Calculated over the trailing 6-month period | 14.83% | 15.12% | -0.29% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.48% | 18.60% | -0.12% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.96% | 19.39% | +0.57% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 25.58% | 24.21% | +1.37% |
Dividends
ARCC vs. BBDC - Dividend Comparison
ARCC's dividend yield for the trailing twelve months is around 9.97%, less than BBDC's 12.99% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
BBDC Barings BDC, Inc. | 12.99% | 12.96% | 10.87% | 11.89% | 11.66% | 7.44% | 7.07% | 5.25% | 21.24% | 0.00% | 0.00% | 0.00% |
Financials
ARCC vs. BBDC - Financials Comparison
This section allows you to compare key financial metrics between Ares Capital Corporation and Barings BDC, Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
Frequently Asked Questions
ARCC and BBDC have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BBDC has higher volatility (6.34%) compared to ARCC (3.72%). In terms of maximum drawdown, ARCC dropped -79.36% vs BBDC's -48.45%.
BBDC currently has the higher Sharpe Ratio (0.22 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.
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