ARDC vs. TBIL

Last updated Jul 17, 2026

ARDC (Ares Dynamic Credit Allocation Fund, Inc.) is a stock, while TBIL (F/m US Treasury 3 Month Bill ETF) is Ultrashort Bond fund tracking the Bloomberg US Treasury Bellwether 3M Total Return USD Unhedged Index. Over the past 3 years, ARDC returned 10.86%/yr vs 4.58%/yr for TBIL. At a correlation of -0.00, they often move in opposite directions.

Performance

ARDC vs. TBIL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Ares Dynamic Credit Allocation Fund, Inc. (ARDC) and F/m US Treasury 3 Month Bill ETF (TBIL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ARDC achieves a -0.27% return, which is significantly lower than TBIL's 1.93% return.

ARDC

• 1D: -0.87%
• 1M: 0.81%
• 6M: -2.76%
• YTD: -0.27%
• 1Y: -4.23%
• 3Y*: 10.86%
• 5Y*: 4.99%
• 10Y*: 8.30%

TBIL

• 1D: 0.02%
• 1M: 0.29%
• 6M: 1.79%
• YTD: 1.93%
• 1Y: 3.89%
• 3Y*: 4.58%
• 5Y*: —
• 10Y*: —

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

ARDC vs. TBIL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
ARDC Ares Dynamic Credit Allocation Fund, Inc.	-0.27%	-3.10%	21.05%	32.35%	-8.30%
TBIL F/m US Treasury 3 Month Bill ETF	1.93%	4.19%	5.15%	5.12%	1.29%

Correlation

The correlation between ARDC and TBIL is -0.04, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.04
Correlation (3Y) Calculated over the trailing 3-year period	-0.02
Correlation (All Time) Calculated using the full available price history since Aug 9, 2022	-0.00

Return for Risk

ARDC vs. TBIL — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ARDC

ARDC Risk / Return Rank: 27
ARDC Sharpe Ratio Rank: 25
ARDC Sortino Ratio Rank: 20
ARDC Omega Ratio Rank: 21
ARDC Calmar Ratio Rank: 36
ARDC Martin Ratio Rank: 34

TBIL

TBIL Risk / Return Rank: 100
TBIL Sharpe Ratio Rank: 100
TBIL Sortino Ratio Rank: 100
TBIL Omega Ratio Rank: 100
TBIL Calmar Ratio Rank: 100
TBIL Martin Ratio Rank: 100

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ARDC vs. TBIL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Ares Dynamic Credit Allocation Fund, Inc. (ARDC) and F/m US Treasury 3 Month Bill ETF (TBIL). 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	TBIL	Difference
Sharpe ratio: Return per unit of total volatility	-0.44	13.92	-14.36
Sortino ratio: Return per unit of downside risk	-0.56	64.45	-65.01
Omega ratio: Gain probability vs. loss probability	0.93	20.57	-19.64
Calmar ratio: Return relative to maximum drawdown	-0.27	194.74	-195.01
Martin ratio: Return relative to average drawdown	-0.54	1,042.78	-1,043.32

ARDC vs. TBIL - Sharpe Ratio Comparison

The current ARDC Sharpe Ratio is -0.44, which is lower than the TBIL Sharpe Ratio of 13.92. The chart below compares the historical Sharpe Ratios of ARDC and TBIL, 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. TBIL - Drawdown Comparison

The maximum ARDC drawdown since its inception was -45.40%, which is greater than TBIL's maximum drawdown of -0.10%. Use the drawdown chart below to compare losses from any high point for ARDC and TBIL.

Drawdown Indicators

	ARDC	TBIL	Difference
Max Drawdown Largest peak-to-trough decline	-45.40%	-0.10%	-45.30%
Max Drawdown (1Y) Largest decline over 1 year	-15.57%	-0.02%	-15.55%
Max Drawdown (3Y) Largest decline over 3 years	-19.78%	-0.02%	-19.76%
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	-7.86%	0.00%	-7.86%
Average Drawdown Average peak-to-trough decline	-6.65%	-0.00%	-6.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.82%	0.00%	+7.82%

Volatility

ARDC vs. TBIL - Volatility Comparison

Ares Dynamic Credit Allocation Fund, Inc. (ARDC) has a higher volatility of 2.61% compared to F/m US Treasury 3 Month Bill ETF (TBIL) at 0.08%. This indicates that ARDC's price experiences larger fluctuations and is considered to be riskier than TBIL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARDC	TBIL	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.61%	0.08%	+2.53%
Volatility (6M) Calculated over the trailing 6-month period	7.30%	0.20%	+7.10%
Volatility (1Y) Calculated over the trailing 1-year period	9.63%	0.28%	+9.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.79%	0.32%	+13.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.85%	0.32%	+16.53%

ARDC vs. TBIL - Expense Ratio Comparison

ARDC has a 0.00% expense ratio, which is lower than TBIL's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ARDC vs. TBIL - Dividend Comparison

ARDC's dividend yield for the trailing twelve months is around 10.73%, more than TBIL's 3.73% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARDC Ares Dynamic Credit Allocation Fund, Inc.	10.73%	10.19%	9.33%	9.85%	10.31%	7.16%	8.40%	8.40%	9.35%	7.58%	8.45%	10.51%
TBIL F/m US Treasury 3 Month Bill ETF	3.73%	4.07%	5.02%	5.00%	1.10%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ARDC and TBIL in my portfolio?

ARDC and TBIL have a correlation of -0.04, 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 TBIL?

ARDC has higher volatility (2.61%) compared to TBIL (0.08%). In terms of maximum drawdown, ARDC dropped -45.40% vs TBIL's -0.10%.

Which has better risk-adjusted returns?

TBIL currently has the higher Sharpe Ratio (13.92 vs -0.44), 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.