ARCC vs. HDV
ARCC (Ares Capital Corporation) is a stock, while HDV (iShares Core High Dividend ETF) is Dividend fund tracking the Morningstar Dividend Yield Focus Index. Over the past 10 years, ARCC returned 13.20%/yr vs 9.47%/yr for HDV. At a 0.46 correlation, their price movements are largely independent.
Performance
ARCC vs. HDV - 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 HDV's 15.30% return. Over the past 10 years, ARCC has outperformed HDV with an annualized return of 13.20%, while HDV has yielded a comparatively lower 9.47% annualized 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%
HDV
- 1D
- 0.87%
- 1M
- 2.05%
- YTD
- 15.30%
- 6M
- 15.20%
- 1Y
- 21.86%
- 3Y*
- 15.16%
- 5Y*
- 10.91%
- 10Y*
- 9.47%
ARCC vs. HDV - 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% |
HDV iShares Core High Dividend ETF | 15.30% | 11.90% | 14.16% | 1.72% | 7.05% | 19.45% | -6.48% | 20.22% | -3.01% | 13.40% |
Correlation
The correlation between ARCC and HDV is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.17 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.34 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.44 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.44 |
Correlation (All Time) Calculated using the full available price history since Mar 31, 2011 | 0.46 |
Over the past year, the correlation between ARCC and HDV has dropped to 0.17 - well below their long-term average of 0.46, suggesting their price drivers have been diverging.
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Return for Risk
ARCC vs. HDV — Risk / Return Rank
ARCC
HDV
ARCC vs. HDV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Ares Capital Corporation (ARCC) and iShares Core High Dividend ETF (HDV). 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 | HDV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.50 | ||
| Sortino ratioReturn per unit of downside risk | -3.55 | ||
| Omega ratioGain probability vs. loss probability | 0.97 | 1.38 | -0.41 |
| Calmar ratioReturn relative to maximum drawdown | -0.26 | 4.18 | -4.44 |
| Martin ratioReturn relative to average drawdown | -0.47 | 11.59 | -12.06 |
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Drawdowns
ARCC vs. HDV - Drawdown Comparison
The maximum ARCC drawdown since its inception was -79.36%, which is greater than HDV's maximum drawdown of -37.04%. Use the drawdown chart below to compare losses from any high point for ARCC and HDV.
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Drawdown Indicators
| ARCC | HDV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -79.36% | -37.04% | -42.32% |
Max Drawdown (1Y)Largest decline over 1 year | -19.35% | -5.18% | -14.17% |
Max Drawdown (3Y)Largest decline over 3 years | -19.35% | -10.49% | -8.86% |
Max Drawdown (5Y)Largest decline over 5 years | -21.76% | -15.42% | -6.34% |
Max Drawdown (10Y)Largest decline over 10 years | -56.77% | -37.04% | -19.73% |
Current DrawdownCurrent decline from peak | -10.98% | -0.29% | -10.69% |
Average DrawdownAverage peak-to-trough decline | -9.10% | -3.08% | -6.02% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.68% | 1.87% | +8.81% |
Volatility
ARCC vs. HDV - Volatility Comparison
Ares Capital Corporation (ARCC) has a higher volatility of 3.72% compared to iShares Core High Dividend ETF (HDV) at 3.10%. This indicates that ARCC's price experiences larger fluctuations and is considered to be riskier than HDV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ARCC | HDV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.72% | 3.10% | +0.62% |
Volatility (6M)Calculated over the trailing 6-month period | 14.83% | 7.44% | +7.39% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.48% | 9.73% | +8.75% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.96% | 12.83% | +7.13% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 25.58% | 15.73% | +9.85% |
Dividends
ARCC vs. HDV - Dividend Comparison
ARCC's dividend yield for the trailing twelve months is around 9.97%, more than HDV's 2.84% 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% |
HDV iShares Core High Dividend ETF | 2.84% | 3.22% | 3.67% | 3.82% | 3.56% | 3.47% | 4.07% | 3.27% | 3.67% | 3.27% | 3.28% | 3.92% |
Frequently Asked Questions
ARCC and HDV have a correlation of 0.17, 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 HDV (3.10%). In terms of maximum drawdown, ARCC dropped -79.36% vs HDV's -37.04%.
HDV currently has the higher Sharpe Ratio (2.23 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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