ARCC vs. KBWD
ARCC (Ares Capital Corporation) is a stock, while KBWD (Invesco KBW High Dividend Yield Financial ETF) is Financials Equities fund tracking the KBW Nasdaq Financial Sector Dividend Yield Index. Over the past 10 years, ARCC returned 13.20%/yr vs 5.25%/yr for KBWD. A 0.64 correlation means they provide meaningful diversification when combined.
Performance
ARCC vs. KBWD - 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 KBWD's -3.74% return. Over the past 10 years, ARCC has outperformed KBWD with an annualized return of 13.20%, while KBWD has yielded a comparatively lower 5.25% 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%
KBWD
- 1D
- 0.80%
- 1M
- -1.25%
- YTD
- -3.74%
- 6M
- -4.15%
- 1Y
- 3.52%
- 3Y*
- 5.00%
- 5Y*
- 0.34%
- 10Y*
- 5.25%
ARCC vs. KBWD - 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% |
KBWD Invesco KBW High Dividend Yield Financial ETF | -3.74% | 5.59% | 4.30% | 20.21% | -19.14% | 31.89% | -15.58% | 20.72% | -8.70% | 12.06% |
Correlation
The correlation between ARCC and KBWD is 0.69, 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 | 0.69 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.64 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.68 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.63 |
Correlation (All Time) Calculated using the full available price history since Dec 2, 2010 | 0.64 |
The correlation between ARCC and KBWD has been stable across timeframes, ranging from 0.63 to 0.69 - a consistent structural relationship.
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Return for Risk
ARCC vs. KBWD — Risk / Return Rank
ARCC
KBWD
ARCC vs. KBWD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Ares Capital Corporation (ARCC) and Invesco KBW High Dividend Yield Financial ETF (KBWD). 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 | KBWD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.40 | ||
| Sortino ratioReturn per unit of downside risk | -0.55 | ||
| Omega ratioGain probability vs. loss probability | 0.97 | 1.03 | -0.06 |
| Calmar ratioReturn relative to maximum drawdown | -0.26 | 0.13 | -0.39 |
| Martin ratioReturn relative to average drawdown | -0.47 | 0.32 | -0.80 |
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Drawdowns
ARCC vs. KBWD - Drawdown Comparison
The maximum ARCC drawdown since its inception was -79.36%, which is greater than KBWD's maximum drawdown of -58.63%. Use the drawdown chart below to compare losses from any high point for ARCC and KBWD.
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Drawdown Indicators
| ARCC | KBWD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -79.36% | -58.63% | -20.73% |
Max Drawdown (1Y)Largest decline over 1 year | -19.35% | -15.05% | -4.30% |
Max Drawdown (3Y)Largest decline over 3 years | -19.35% | -19.65% | +0.30% |
Max Drawdown (5Y)Largest decline over 5 years | -21.76% | -30.74% | +8.98% |
Max Drawdown (10Y)Largest decline over 10 years | -56.77% | -58.63% | +1.86% |
Current DrawdownCurrent decline from peak | -10.98% | -10.58% | -0.40% |
Average DrawdownAverage peak-to-trough decline | -9.10% | -7.41% | -1.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.68% | 6.10% | +4.58% |
Volatility
ARCC vs. KBWD - Volatility Comparison
The current volatility for Ares Capital Corporation (ARCC) is 3.72%, while Invesco KBW High Dividend Yield Financial ETF (KBWD) has a volatility of 4.70%. This indicates that ARCC experiences smaller price fluctuations and is considered to be less risky than KBWD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ARCC | KBWD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.72% | 4.70% | -0.98% |
Volatility (6M)Calculated over the trailing 6-month period | 14.83% | 12.36% | +2.47% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.48% | 15.59% | +2.89% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.96% | 19.89% | +0.07% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 25.58% | 23.25% | +2.33% |
Dividends
ARCC vs. KBWD - Dividend Comparison
ARCC's dividend yield for the trailing twelve months is around 9.97%, less than KBWD's 14.14% 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% |
KBWD Invesco KBW High Dividend Yield Financial ETF | 14.14% | 12.83% | 12.45% | 11.45% | 11.32% | 7.26% | 9.68% | 8.63% | 9.47% | 8.77% | 8.68% | 8.89% |
Frequently Asked Questions
ARCC and KBWD have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
KBWD has higher volatility (4.70%) compared to ARCC (3.72%). In terms of maximum drawdown, ARCC dropped -79.36% vs KBWD's -58.63%.
KBWD currently has the higher Sharpe Ratio (0.13 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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