ARDC vs. IQQQ

Last updated Aug 3, 2026

ARDC (Ares Dynamic Credit Allocation Fund, Inc.) is a stock, while IQQQ (ProShares Nasdaq-100 High Income ETF) is Nasdaq-100 fund tracking the Nasdaq-100 Daily Covered Call Index. ARDC is actively managed, while IQQQ is passively managed. Over the past year, ARDC returned -4.12% vs 21.93% for IQQQ. Their 0.30 correlation means their historical movements had little consistent relationship. ARDC charges 5.26%/yr vs 0.55%/yr for IQQQ.

Performance

ARDC vs. IQQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Ares Dynamic Credit Allocation Fund, Inc. (ARDC) and ProShares Nasdaq-100 High Income ETF (IQQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ARDC achieves a -0.97% return, which is significantly lower than IQQQ's 10.08% return.

ARDC

• 1D: 0.32%
• 1M: -2.17%
• 6M: -2.88%
• YTD: -0.97%
• 1Y: -4.12%
• 3Y*: 9.45%
• 5Y*: 4.88%
• 10Y*: 7.88%
• ALL TIME*: 5.60%

IQQQ

• 1D: 0.73%
• 1M: -3.19%
• 6M: 8.63%
• YTD: 10.08%
• 1Y: 21.93%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 18.05%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ARDC Ares Dynamic Credit Allocation Fund, Inc.	$1.13M	$1.55M	$1.50M
IQQQ ProShares Nasdaq-100 High Income ETF	$2.00M	$2.37M	$2.93M

ARDC vs. IQQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ARDC Ares Dynamic Credit Allocation Fund, Inc.	-0.97%	-3.10%	14.48%
IQQQ ProShares Nasdaq-100 High Income ETF	10.08%	17.11%	14.82%

Correlation

The correlation between ARDC and IQQQ is 0.41, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.41
Correlation (All Time) Calculated using the full available price history since Mar 20, 2024	0.30

The correlation between ARDC and IQQQ shifts across timeframes, from 0.30 (all time) to 0.41 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

ARDC vs. IQQQ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ARDC

ARDC Risk / Return Rank: 26
ARDC Sharpe Ratio Rank: 22
ARDC Sortino Ratio Rank: 19
ARDC Omega Ratio Rank: 20
ARDC Calmar Ratio Rank: 34
ARDC Martin Ratio Rank: 33

IQQQ

IQQQ Risk / Return Rank: 44
IQQQ Sharpe Ratio Rank: 43
IQQQ Sortino Ratio Rank: 41
IQQQ Omega Ratio Rank: 40
IQQQ Calmar Ratio Rank: 50
IQQQ Martin Ratio Rank: 47

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ARDC vs. IQQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Ares Dynamic Credit Allocation Fund, Inc. (ARDC) and ProShares Nasdaq-100 High Income ETF (IQQQ). 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.

	ARDC	IQQQ	Difference
Sharpe ratio: Return per unit of total volatility	-0.49	1.07	-1.56
Sortino ratio: Return per unit of downside risk	-0.62	1.52	-2.14
Omega ratio: Gain probability vs. loss probability	0.93	1.19	-0.26
Calmar ratio: Return relative to maximum drawdown	-0.30	1.76	-2.06
Martin ratio: Return relative to average drawdown	-0.58	5.26	-5.84

ARDC vs. IQQQ - Sharpe Ratio Comparison

The current ARDC Sharpe Ratio is -0.49, which is lower than the IQQQ Sharpe Ratio of 1.07. The chart below compares the historical Sharpe Ratios of ARDC and IQQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ARDC vs. IQQQ - Drawdown Comparison

The maximum ARDC drawdown since its inception was -45.40%, which is greater than IQQQ's maximum drawdown of -20.41%. Use the drawdown chart below to compare losses from any high point for ARDC and IQQQ.

Drawdown Indicators

	ARDC	IQQQ	Difference
Max Drawdown Largest peak-to-trough decline	-45.40%	-20.41%	-24.99%
Max Drawdown (1Y) Largest decline over 1 year	-15.57%	-11.25%	-4.32%
Max Drawdown (3Y) Largest decline over 3 years	-19.78%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-26.48%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-45.40%	—	—
Current Drawdown Current decline from peak	-8.50%	-7.56%	-0.94%
Average Drawdown Average peak-to-trough decline	-6.65%	-3.71%	-2.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.01%	3.77%	+4.24%

Volatility

ARDC vs. IQQQ - Volatility Comparison

The current volatility for Ares Dynamic Credit Allocation Fund, Inc. (ARDC) is 2.49%, while ProShares Nasdaq-100 High Income ETF (IQQQ) has a volatility of 6.84%. This indicates that ARDC experiences smaller price fluctuations and is considered to be less risky than IQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARDC	IQQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.49%	6.84%	-4.35%
Volatility (6M) Calculated over the trailing 6-month period	7.50%	15.11%	-7.61%
Volatility (1Y) Calculated over the trailing 1-year period	9.61%	18.47%	-8.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.78%	19.30%	-5.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.86%	19.30%	-2.44%

ARDC vs. IQQQ - Expense Ratio Comparison

ARDC has a 5.26% expense ratio, which is higher than IQQQ's 0.55% expense ratio.

Dividends

ARDC vs. IQQQ - Dividend Comparison

ARDC's dividend yield for the trailing twelve months is around 10.90%, more than IQQQ's 5.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARDC Ares Dynamic Credit Allocation Fund, Inc.	10.90%	10.19%	9.33%	9.85%	10.31%	7.16%	8.40%	8.40%	9.35%	7.58%	8.45%	10.51%
IQQQ ProShares Nasdaq-100 High Income ETF	5.37%	10.34%	7.27%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ARDC and IQQQ in my portfolio?

ARDC and IQQQ have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ARDC or IQQQ?

IQQQ has higher volatility (6.84%) compared to ARDC (2.49%). In terms of maximum drawdown, ARDC dropped -45.40% vs IQQQ's -20.41%.

Which has better risk-adjusted returns?

IQQQ currently has the higher Sharpe Ratio (1.07 vs -0.49), 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.