ARCC vs. SCHD
ARCC (Ares Capital Corporation) is a stock, while SCHD (Schwab U.S. Dividend Equity ETF) is Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Over the past 10 years, ARCC returned 12.33%/yr vs 12.76%/yr for SCHD. Their 0.49 correlation means their historical movements had little consistent relationship.
Performance
ARCC vs. SCHD - Performance Comparison
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Returns By Period
In the year-to-date period, ARCC achieves a -2.30% return, which is significantly lower than SCHD's 24.03% return. Both investments have delivered pretty close results over the past 10 years, with ARCC having a 12.33% annualized return and SCHD not far ahead at 12.76%.
ARCC
- 1D
- -0.37%
- 1M
- 0.16%
- 6M
- -0.63%
- YTD
- -2.30%
- 1Y
- -7.66%
- 3Y*
- 8.39%
- 5Y*
- 8.57%
- 10Y*
- 12.33%
- ALL TIME*
- 11.98%
SCHD
- 1D
- 0.18%
- 1M
- 3.33%
- 6M
- 14.09%
- YTD
- 24.03%
- 1Y
- 31.54%
- 3Y*
- 14.19%
- 5Y*
- 9.54%
- 10Y*
- 12.76%
- ALL TIME*
- 13.39%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $81.64M | $84.10M | $93.93M | |
| $786.88M | $715.86M | $685.58M |
ARCC vs. SCHD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | -2.30% | 1.07% | 19.78% | 20.03% | -3.84% | 36.14% | 0.86% | 31.30% | 8.81% | 4.50% |
SCHD Schwab U.S. Dividend Equity ETF | 24.03% | 4.34% | 11.66% | 4.54% | -3.26% | 29.87% | 15.03% | 27.29% | -5.56% | 20.85% |
Correlation
The correlation between ARCC and SCHD is 0.29, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.29 |
Correlation (3Y) Balances recent behavior with more history. | 0.43 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.50 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.48 |
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011 | 0.49 |
Over the past year, the correlation between ARCC and SCHD has dropped to 0.29 - well below their long-term average of 0.49, suggesting their price drivers have been diverging.
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Return for Risk
ARCC vs. SCHD — Risk / Return Rank
ARCC
SCHD
ARCC vs. SCHD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Ares Capital Corporation (ARCC) and Schwab U.S. 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.
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 | SCHD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -3.27 | ||
| Sortino ratioReturn per unit of downside risk | -4.89 | ||
| Omega ratioGain probability vs. loss probability | 0.94 | 1.51 | -0.57 |
| Calmar ratioReturn relative to maximum drawdown | -0.50 | 6.74 | -7.24 |
| Martin ratioReturn relative to average drawdown | -0.91 | 17.01 | -17.92 |
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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.
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Drawdown Indicators
| ARCC | SCHD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -79.36% | -33.37% | -45.99% |
Max Drawdown (1Y)Largest decline over 1 year | -17.35% | -4.61% | -12.74% |
Max Drawdown (3Y)Largest decline over 3 years | -19.35% | -16.13% | -3.22% |
Max Drawdown (5Y)Largest decline over 5 years | -21.76% | -16.85% | -4.91% |
Max Drawdown (10Y)Largest decline over 10 years | -56.77% | -33.37% | -23.40% |
Current DrawdownCurrent decline from peak | -11.07% | -1.24% | -9.83% |
Average DrawdownAverage peak-to-trough decline | -9.12% | -3.30% | -5.82% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 9.51% | 1.82% | +7.69% |
Volatility
ARCC vs. SCHD - Volatility Comparison
Ares Capital Corporation (ARCC) has a higher volatility of 4.33% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 4.11%. This indicates that ARCC's price experiences larger fluctuations and is considered to be riskier than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ARCC | SCHD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.33% | 4.11% | +0.22% |
Volatility (6M)Calculated over the trailing 6-month period | 14.79% | 8.11% | +6.68% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.86% | 11.13% | +7.73% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.97% | 14.39% | +5.58% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 25.58% | 16.72% | +8.86% |
Dividends
ARCC vs. SCHD - Dividend Comparison
ARCC's dividend yield for the trailing twelve months is around 10.23%, more than SCHD's 3.13% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | 10.23% | 9.49% | 8.77% | 9.59% | 10.12% | 7.65% | 9.47% | 9.01% | 9.88% | 9.67% | 9.22% | 11.02% |
SCHD Schwab U.S. Dividend Equity ETF | 3.13% | 3.82% | 3.64% | 3.49% | 3.39% | 2.78% | 3.16% | 2.98% | 3.06% | 2.63% | 2.89% | 2.97% |
Frequently Asked Questions
ARCC and SCHD have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ARCC has higher volatility (4.33%) compared to SCHD (4.11%). In terms of maximum drawdown, ARCC dropped -79.36% vs SCHD's -33.37%.
SCHD currently has the higher Sharpe Ratio (2.81 vs -0.46), 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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