ARCC vs. KMLM
ARCC (Ares Capital Corporation) is a stock, while KMLM (KFA Mount Lucas Index Strategy ETF) is Systematic Trend fund tracking the KFA MLM Index. Over the past 5 years, ARCC returned 9.13%/yr vs 5.46%/yr for KMLM. Their -0.08 correlation means they have often moved in opposite directions in the past.
Performance
ARCC vs. KMLM - Performance Comparison
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Returns By Period
In the year-to-date period, ARCC achieves a -0.17% return, which is significantly lower than KMLM's 10.64% return.
ARCC
- 1D
- 2.19%
- 1M
- 2.35%
- 6M
- 3.47%
- YTD
- -0.17%
- 1Y
- -5.64%
- 3Y*
- 9.14%
- 5Y*
- 9.13%
- 10Y*
- 12.32%
- ALL TIME*
- 12.08%
KMLM
- 1D
- -2.05%
- 1M
- 4.67%
- 6M
- 8.67%
- YTD
- 10.64%
- 1Y
- 15.77%
- 3Y*
- -0.31%
- 5Y*
- 5.46%
- 10Y*
- —
- ALL TIME*
- 7.06%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $82.65M | $85.21M | $94.25M | |
| $10.28M | $9.90M | $7.93M |
ARCC vs. KMLM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | -0.17% | 1.07% | 19.78% | 20.03% | -3.84% | 36.14% | 2.90% |
KMLM KFA Mount Lucas Index Strategy ETF | 10.64% | -2.98% | -1.69% | -5.66% | 30.61% | 7.04% | 5.74% |
Correlation
The correlation between ARCC and KMLM is -0.17, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | -0.17 |
Correlation (3Y) Balances recent behavior with more history. | -0.10 |
Correlation (5Y) Shows whether the relationship held over a longer period. | -0.11 |
Correlation (All Time) Calculated using the full available price history since Dec 2, 2020 | -0.08 |
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Return for Risk
ARCC vs. KMLM — Risk / Return Rank
ARCC
KMLM
ARCC vs. KMLM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Ares Capital Corporation (ARCC) and KFA Mount Lucas Index Strategy ETF (KMLM). 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 | KMLM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.66 | ||
| Sortino ratioReturn per unit of downside risk | -2.16 | ||
| Omega ratioGain probability vs. loss probability | 0.97 | 1.25 | -0.28 |
| Calmar ratioReturn relative to maximum drawdown | -0.33 | 1.65 | -1.97 |
| Martin ratioReturn relative to average drawdown | -0.59 | 5.33 | -5.92 |
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Drawdowns
ARCC vs. KMLM - Drawdown Comparison
The maximum ARCC drawdown since its inception was -79.36%, which is greater than KMLM's maximum drawdown of -27.47%. Use the drawdown chart below to compare losses from any high point for ARCC and KMLM.
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Drawdown Indicators
| ARCC | KMLM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -79.36% | -27.47% | -51.89% |
Max Drawdown (1Y)Largest decline over 1 year | -17.35% | -9.61% | -7.74% |
Max Drawdown (3Y)Largest decline over 3 years | -19.35% | -22.28% | +2.93% |
Max Drawdown (5Y)Largest decline over 5 years | -21.76% | -27.47% | +5.71% |
Max Drawdown (10Y)Largest decline over 10 years | -56.77% | — | — |
Current DrawdownCurrent decline from peak | -9.13% | -13.73% | +4.60% |
Average DrawdownAverage peak-to-trough decline | -9.12% | -12.79% | +3.67% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 9.52% | 2.97% | +6.55% |
Volatility
ARCC vs. KMLM - Volatility Comparison
Ares Capital Corporation (ARCC) has a higher volatility of 4.82% compared to KFA Mount Lucas Index Strategy ETF (KMLM) at 4.35%. This indicates that ARCC's price experiences larger fluctuations and is considered to be riskier than KMLM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ARCC | KMLM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.82% | 4.35% | +0.47% |
Volatility (6M)Calculated over the trailing 6-month period | 14.88% | 10.24% | +4.64% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.00% | 11.68% | +7.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.00% | 14.55% | +5.45% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 25.59% | 14.68% | +10.91% |
Dividends
ARCC vs. KMLM - Dividend Comparison
ARCC's dividend yield for the trailing twelve months is around 10.02%, more than KMLM's 4.54% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | 10.02% | 9.49% | 8.77% | 9.59% | 10.12% | 7.65% | 9.47% | 9.01% | 9.88% | 9.67% | 9.22% | 11.02% |
KMLM KFA Mount Lucas Index Strategy ETF | 4.54% | 5.02% | 0.82% | 0.00% | 13.22% | 6.94% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
ARCC and KMLM 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 (4.82%) compared to KMLM (4.35%). In terms of maximum drawdown, ARCC dropped -79.36% vs KMLM's -27.47%.
KMLM currently has the higher Sharpe Ratio (1.36 vs -0.30), 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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