ARCC vs. SCHD
Compare and contrast key facts about Ares Capital Corporation (ARCC) and Schwab US Dividend Equity ETF (SCHD).
SCHD is a passively managed fund by Charles Schwab that tracks the performance of the Dow Jones U.S. Dividend 100 Index. It was launched on Oct 20, 2011.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ARCC or SCHD.
Performance
ARCC vs. SCHD - Performance Comparison
Returns By Period
The year-to-date returns for both investments are quite close, with ARCC having a 16.05% return and SCHD slightly higher at 16.58%. Over the past 10 years, ARCC has outperformed SCHD with an annualized return of 13.31%, while SCHD has yielded a comparatively lower 11.44% annualized return.
ARCC
16.05%
0.14%
6.46%
21.17%
13.40%
13.31%
SCHD
16.58%
-0.07%
10.53%
26.04%
12.78%
11.44%
Key characteristics
| ARCC | SCHD | |
|---|---|---|
| Sharpe Ratio | 1.87 | 2.41 |
| Sortino Ratio | 2.63 | 3.46 |
| Omega Ratio | 1.34 | 1.42 |
| Calmar Ratio | 3.06 | 3.46 |
| Martin Ratio | 12.97 | 13.08 |
| Ulcer Index | 1.64% | 2.04% |
| Daily Std Dev | 11.39% | 11.08% |
| Max Drawdown | -79.36% | -33.37% |
| Current Drawdown | -0.18% | -1.27% |
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Correlation
The correlation between ARCC and SCHD is 0.50, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Risk-Adjusted Performance
ARCC vs. SCHD - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Ares Capital Corporation (ARCC) and Schwab US Dividend Equity ETF (SCHD). 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.
Dividends
ARCC vs. SCHD - Dividend Comparison
ARCC's dividend yield for the trailing twelve months is around 8.86%, more than SCHD's 3.39% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | 8.86% | 9.59% | 10.12% | 7.65% | 9.47% | 9.01% | 9.88% | 9.67% | 9.22% | 11.02% | 10.06% | 8.84% |
SCHD Schwab US Dividend Equity ETF | 3.39% | 3.49% | 3.39% | 2.78% | 3.16% | 2.98% | 3.06% | 2.63% | 2.89% | 2.97% | 2.63% | 2.47% |
Drawdowns
ARCC vs. SCHD - Drawdown Comparison
The maximum ARCC drawdown since its inception was -79.36%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for ARCC and SCHD. For additional features, visit the drawdowns tool.
Volatility
ARCC vs. SCHD - Volatility Comparison
The current volatility for Ares Capital Corporation (ARCC) is 3.29%, while Schwab US Dividend Equity ETF (SCHD) has a volatility of 3.60%. This indicates that ARCC experiences smaller price fluctuations and is considered to be less risky than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.