ARCC vs. EWJ
ARCC (Ares Capital Corporation) is a stock, while EWJ (iShares MSCI Japan ETF) is Japan Equities fund tracking the MSCI Japan Index. Over the past 10 years, ARCC returned 13.20%/yr vs 9.55%/yr for EWJ. At a 0.39 correlation, their price movements are largely independent.
Performance
ARCC vs. EWJ - 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 EWJ's 14.83% return. Over the past 10 years, ARCC has outperformed EWJ with an annualized return of 13.20%, while EWJ has yielded a comparatively lower 9.55% annualized return.
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%
EWJ
- 1D
- 0.57%
- 1M
- 0.71%
- YTD
- 14.83%
- 6M
- 14.50%
- 1Y
- 31.74%
- 3Y*
- 16.57%
- 5Y*
- 8.56%
- 10Y*
- 9.55%
ARCC vs. EWJ - 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% |
EWJ iShares MSCI Japan ETF | 14.83% | 25.84% | 7.03% | 20.29% | -17.72% | 1.16% | 15.40% | 19.34% | -14.10% | 24.27% |
Correlation
The correlation between ARCC and EWJ is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.33 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.36 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.40 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.37 |
Correlation (All Time) Calculated using the full available price history since Oct 6, 2004 | 0.39 |
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Return for Risk
ARCC vs. EWJ — Risk / Return Rank
ARCC
EWJ
ARCC vs. EWJ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Ares Capital Corporation (ARCC) and iShares MSCI Japan ETF (EWJ). 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 | EWJ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.80 | ||
| Sortino ratioReturn per unit of downside risk | -2.47 | ||
| Omega ratioGain probability vs. loss probability | 0.97 | 1.28 | -0.31 |
| Calmar ratioReturn relative to maximum drawdown | -0.26 | 2.27 | -2.53 |
| Martin ratioReturn relative to average drawdown | -0.47 | 7.62 | -8.10 |
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Drawdowns
ARCC vs. EWJ - Drawdown Comparison
The maximum ARCC drawdown since its inception was -79.36%, which is greater than EWJ's maximum drawdown of -60.93%. Use the drawdown chart below to compare losses from any high point for ARCC and EWJ.
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Drawdown Indicators
| ARCC | EWJ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -79.36% | -60.93% | -18.43% |
Max Drawdown (1Y)Largest decline over 1 year | -19.35% | -13.59% | -5.76% |
Max Drawdown (3Y)Largest decline over 3 years | -19.35% | -14.68% | -4.67% |
Max Drawdown (5Y)Largest decline over 5 years | -21.76% | -33.14% | +11.38% |
Max Drawdown (10Y)Largest decline over 10 years | -56.77% | -33.14% | -23.63% |
Current DrawdownCurrent decline from peak | -10.98% | -1.51% | -9.47% |
Average DrawdownAverage peak-to-trough decline | -9.10% | -21.72% | +12.62% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.68% | 4.04% | +6.64% |
Volatility
ARCC vs. EWJ - Volatility Comparison
The current volatility for Ares Capital Corporation (ARCC) is 3.72%, while iShares MSCI Japan ETF (EWJ) has a volatility of 6.31%. This indicates that ARCC experiences smaller price fluctuations and is considered to be less risky than EWJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ARCC | EWJ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.72% | 6.31% | -2.59% |
Volatility (6M)Calculated over the trailing 6-month period | 14.83% | 15.96% | -1.13% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.48% | 20.23% | -1.75% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.96% | 18.38% | +1.58% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 25.58% | 17.33% | +8.25% |
Dividends
ARCC vs. EWJ - Dividend Comparison
ARCC's dividend yield for the trailing twelve months is around 9.97%, more than EWJ's 3.94% 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% |
EWJ iShares MSCI Japan ETF | 3.94% | 4.52% | 2.34% | 2.03% | 1.23% | 2.08% | 1.04% | 2.03% | 1.71% | 1.25% | 1.95% | 1.27% |
Frequently Asked Questions
ARCC and EWJ have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
EWJ has higher volatility (6.31%) compared to ARCC (3.72%). In terms of maximum drawdown, ARCC dropped -79.36% vs EWJ's -60.93%.
EWJ currently has the higher Sharpe Ratio (1.52 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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