ARCC vs. SPY
Compare and contrast key facts about Ares Capital Corporation (ARCC) and SPDR S&P 500 ETF (SPY).
SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ARCC or SPY.
Key characteristics
| ARCC | SPY | |
|---|---|---|
| YTD Return | 5.58% | 5.46% |
| 1Y Return | 25.15% | 22.99% |
| 3Y Return (Ann) | 11.97% | 7.85% |
| 5Y Return (Ann) | 13.81% | 13.16% |
| 10Y Return (Ann) | 12.00% | 12.40% |
| Sharpe Ratio | 1.93 | 1.97 |
| Daily Std Dev | 13.30% | 11.75% |
| Max Drawdown | -79.36% | -55.19% |
| Current Drawdown | -0.77% | -4.48% |
Correlation
The correlation between ARCC and SPY is 0.56, 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.
Performance
ARCC vs. SPY - Performance Comparison
The year-to-date returns for both stocks are quite close, with ARCC having a 5.58% return and SPY slightly lower at 5.46%. Both investments have delivered pretty close results over the past 10 years, with ARCC having a 12.00% annualized return and SPY not far ahead at 12.40%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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Risk-Adjusted Performance
ARCC vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Ares Capital Corporation (ARCC) and SPDR S&P 500 ETF (SPY). 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. SPY - Dividend Comparison
ARCC's dividend yield for the trailing twelve months is around 9.29%, more than SPY's 1.35% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | 9.29% | 9.59% | 10.10% | 7.60% | 9.41% | 8.94% | 9.78% | 9.57% | 9.12% | 10.90% | 9.93% | 8.67% |
SPY SPDR S&P 500 ETF | 1.35% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
Drawdowns
ARCC vs. SPY - Drawdown Comparison
The maximum ARCC drawdown since its inception was -79.36%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for ARCC and SPY. For additional features, visit the drawdowns tool.
Volatility
ARCC vs. SPY - Volatility Comparison
Ares Capital Corporation (ARCC) has a higher volatility of 3.88% compared to SPDR S&P 500 ETF (SPY) at 3.26%. This indicates that ARCC's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.