ARCC vs. VTI
ARCC (Ares Capital Corporation) is a stock, while VTI (Vanguard Total Stock Market ETF) is Large Cap Blend Equities fund tracking the CRSP US Total Market Index. Over the past 10 years, ARCC returned 13.20%/yr vs 15.02%/yr for VTI. A 0.56 correlation means they provide meaningful diversification when combined.
Performance
ARCC vs. VTI - Performance Comparison
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Returns By Period
In the year-to-date period, ARCC achieves a -2.20% return, which is significantly lower than VTI's 9.62% return. Over the past 10 years, ARCC has underperformed VTI with an annualized return of 13.20%, while VTI has yielded a comparatively higher 15.02% annualized return.
ARCC
- 1D
- 1.00%
- 1M
- 1.90%
- YTD
- -2.20%
- 6M
- -2.87%
- 1Y
- -3.87%
- 3Y*
- 10.27%
- 5Y*
- 9.04%
- 10Y*
- 13.20%
VTI
- 1D
- 0.57%
- 1M
- -0.28%
- YTD
- 9.62%
- 6M
- 9.69%
- 1Y
- 26.27%
- 3Y*
- 20.60%
- 5Y*
- 12.20%
- 10Y*
- 15.02%
ARCC vs. VTI - 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% |
VTI Vanguard Total Stock Market ETF | 9.62% | 17.10% | 23.81% | 26.05% | -19.52% | 25.68% | 21.08% | 30.67% | -5.23% | 21.21% |
Correlation
The correlation between ARCC and VTI is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.47 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.49 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.54 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.51 |
Correlation (All Time) Calculated using the full available price history since Oct 6, 2004 | 0.56 |
The correlation between ARCC and VTI has been stable across timeframes, ranging from 0.47 to 0.56 - a consistent structural relationship.
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Return for Risk
ARCC vs. VTI — Risk / Return Rank
ARCC
VTI
ARCC vs. VTI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Ares Capital Corporation (ARCC) and Vanguard Total Stock Market ETF (VTI). 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 | VTI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.25 | ||
| Sortino ratioReturn per unit of downside risk | -2.93 | ||
| Omega ratioGain probability vs. loss probability | 0.97 | 1.35 | -0.38 |
| Calmar ratioReturn relative to maximum drawdown | -0.26 | 2.79 | -3.05 |
| Martin ratioReturn relative to average drawdown | -0.47 | 12.52 | -12.99 |
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Drawdowns
ARCC vs. VTI - Drawdown Comparison
The maximum ARCC drawdown since its inception was -79.36%, which is greater than VTI's maximum drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for ARCC and VTI.
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Drawdown Indicators
| ARCC | VTI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -79.36% | -55.45% | -23.91% |
Max Drawdown (1Y)Largest decline over 1 year | -19.35% | -8.92% | -10.43% |
Max Drawdown (3Y)Largest decline over 3 years | -19.35% | -19.30% | -0.05% |
Max Drawdown (5Y)Largest decline over 5 years | -21.76% | -25.36% | +3.60% |
Max Drawdown (10Y)Largest decline over 10 years | -56.77% | -35.00% | -21.77% |
Current DrawdownCurrent decline from peak | -10.98% | -2.14% | -8.84% |
Average DrawdownAverage peak-to-trough decline | -9.10% | -8.02% | -1.08% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.68% | 1.99% | +8.69% |
Volatility
ARCC vs. VTI - Volatility Comparison
The current volatility for Ares Capital Corporation (ARCC) is 3.72%, while Vanguard Total Stock Market ETF (VTI) has a volatility of 4.50%. This indicates that ARCC experiences smaller price fluctuations and is considered to be less risky than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ARCC | VTI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.72% | 4.50% | -0.78% |
Volatility (6M)Calculated over the trailing 6-month period | 14.83% | 9.82% | +5.01% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.48% | 12.64% | +5.84% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.96% | 17.47% | +2.49% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 25.58% | 18.33% | +7.25% |
Dividends
ARCC vs. VTI - Dividend Comparison
ARCC's dividend yield for the trailing twelve months is around 9.97%, more than VTI's 1.03% 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% |
VTI Vanguard Total Stock Market ETF | 1.03% | 1.12% | 1.27% | 1.44% | 1.66% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% |
Frequently Asked Questions
ARCC and VTI have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTI has higher volatility (4.50%) compared to ARCC (3.72%). In terms of maximum drawdown, ARCC dropped -79.36% vs VTI's -55.45%.
VTI currently has the higher Sharpe Ratio (1.97 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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