ARCC vs. BND
ARCC (Ares Capital Corporation) is a stock, while BND (Vanguard Total Bond Market ETF) is Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Over the past 10 years, ARCC returned 13.20%/yr vs 1.58%/yr for BND. At a correlation of -0.09, they often move in opposite directions.
Performance
ARCC vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, ARCC achieves a -2.20% return, which is significantly lower than BND's 0.52% return. Over the past 10 years, ARCC has outperformed BND with an annualized return of 13.20%, while BND has yielded a comparatively lower 1.58% annualized return.
ARCC
- 1D
- 1.00%
- 1M
- 2.56%
- YTD
- -2.20%
- 6M
- -2.87%
- 1Y
- -5.06%
- 3Y*
- 10.27%
- 5Y*
- 9.04%
- 10Y*
- 13.20%
BND
- 1D
- -0.12%
- 1M
- 0.42%
- YTD
- 0.52%
- 6M
- 0.91%
- 1Y
- 4.40%
- 3Y*
- 4.17%
- 5Y*
- 0.03%
- 10Y*
- 1.58%
ARCC vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | -2.20% | 1.07% | 19.78% | 20.03% | -3.84% | 36.14% | 0.86% | 31.30% | 8.81% | 4.50% |
BND Vanguard Total Bond Market ETF | 0.52% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
Correlation
The correlation between ARCC and BND is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.20 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.14 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.11 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.03 |
Correlation (All Time) Calculated using the full available price history since Apr 10, 2007 | -0.09 |
The correlation between ARCC and BND shifts across timeframes, from -0.09 (all time) to 0.20 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
ARCC vs. BND — Risk / Return Rank
ARCC
BND
ARCC vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Ares Capital Corporation (ARCC) and Vanguard Total Bond Market ETF (BND). 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 | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.46 | ||
| Sortino ratioReturn per unit of downside risk | -2.03 | ||
| Omega ratioGain probability vs. loss probability | 0.97 | 1.21 | -0.24 |
| Calmar ratioReturn relative to maximum drawdown | -0.26 | 1.65 | -1.91 |
| Martin ratioReturn relative to average drawdown | -0.47 | 4.81 | -5.28 |
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Drawdowns
ARCC vs. BND - Drawdown Comparison
The maximum ARCC drawdown since its inception was -79.36%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for ARCC and BND.
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Drawdown Indicators
| ARCC | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -79.36% | -18.58% | -60.78% |
Max Drawdown (1Y)Largest decline over 1 year | -19.35% | -2.68% | -16.67% |
Max Drawdown (3Y)Largest decline over 3 years | -19.35% | -5.92% | -13.43% |
Max Drawdown (5Y)Largest decline over 5 years | -21.76% | -17.91% | -3.85% |
Max Drawdown (10Y)Largest decline over 10 years | -56.77% | -18.58% | -38.19% |
Current DrawdownCurrent decline from peak | -10.98% | -2.12% | -8.86% |
Average DrawdownAverage peak-to-trough decline | -9.10% | -3.06% | -6.04% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.68% | 0.92% | +9.76% |
Volatility
ARCC vs. BND - Volatility Comparison
Ares Capital Corporation (ARCC) has a higher volatility of 3.72% compared to Vanguard Total Bond Market ETF (BND) at 1.28%. This indicates that ARCC's price experiences larger fluctuations and is considered to be riskier than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ARCC | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.72% | 1.28% | +2.44% |
Volatility (6M)Calculated over the trailing 6-month period | 14.83% | 2.74% | +12.09% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.48% | 3.75% | +14.73% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.96% | 6.03% | +13.93% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 25.58% | 5.53% | +20.05% |
Dividends
ARCC vs. BND - Dividend Comparison
ARCC's dividend yield for the trailing twelve months is around 9.97%, more than BND's 3.96% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | 9.97% | 9.49% | 8.77% | 9.59% | 10.12% | 7.65% | 9.47% | 9.01% | 9.88% | 9.67% | 9.22% | 11.02% |
BND Vanguard Total Bond Market ETF | 3.96% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
Frequently Asked Questions
ARCC and BND have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ARCC has higher volatility (3.72%) compared to BND (1.28%). In terms of maximum drawdown, ARCC dropped -79.36% vs BND's -18.58%.
BND currently has the higher Sharpe Ratio (1.18 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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