BABA vs. BABO

Last updated Jun 4, 2026

BABA (Alibaba Group Holding Limited) is a stock, while BABO (YieldMax BABA Option Income Strategy ETF) is Derivative Income fund actively managed by YieldMax. Over the past year, BABA returned 12.52% vs 8.62% for BABO. With a 0.98 correlation, they move nearly in lockstep.

Performance

BABA vs. BABO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alibaba Group Holding Limited (BABA) and YieldMax BABA Option Income Strategy ETF (BABO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BABA achieves a -13.21% return, which is significantly lower than BABO's -12.48% return.

BABA

• 1D: -2.76%
• 1M: -4.55%
• YTD: -13.21%
• 6M: -19.53%
• 1Y: 12.52%
• 3Y*: 16.70%
• 5Y*: -9.37%
• 10Y*: 5.74%

BABO

• 1D: -1.54%
• 1M: -4.06%
• YTD: -12.48%
• 6M: -16.80%
• 1Y: 8.62%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BABA vs. BABO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BABA Alibaba Group Holding Limited	-13.21%	75.80%	5.58%
BABO YieldMax BABA Option Income Strategy ETF	-12.48%	46.84%	-0.08%

Correlation

The correlation between BABA and BABO is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (All Time) Calculated using the full available price history since Aug 9, 2024	0.98

The correlation between BABA and BABO has been stable across timeframes, ranging from 0.98 to 0.98 - a consistent structural relationship.

Return for Risk

BABA vs. BABO — Risk / Return Rank

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

BABA

BABA Risk / Return Rank: 48
BABA Sharpe Ratio Rank: 50
BABA Sortino Ratio Rank: 49
BABA Omega Ratio Rank: 45
BABA Calmar Ratio Rank: 48
BABA Martin Ratio Rank: 48

BABO

BABO Risk / Return Rank: 12
BABO Sharpe Ratio Rank: 12
BABO Sortino Ratio Rank: 14
BABO Omega Ratio Rank: 13
BABO Calmar Ratio Rank: 12
BABO Martin Ratio Rank: 12

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.

BABA vs. BABO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alibaba Group Holding Limited (BABA) and YieldMax BABA Option Income Strategy ETF (BABO). 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.

	BABA	BABO	Difference
Sharpe ratio: Return per unit of total volatility	0.29	0.25	+0.04
Sortino ratio: Return per unit of downside risk	0.81	0.64	+0.17
Omega ratio: Gain probability vs. loss probability	1.09	1.07	+0.01
Calmar ratio: Return relative to maximum drawdown	0.34	0.29	+0.05
Martin ratio: Return relative to average drawdown	0.67	0.60	+0.08
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BABA vs. BABO - Sharpe Ratio Comparison

The current BABA Sharpe Ratio is 0.29, which is comparable to the BABO Sharpe Ratio of 0.25. The chart below compares the historical Sharpe Ratios of BABA and BABO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BABA	BABO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.29	0.25	+0.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.18	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.13	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.07	0.40	-0.33

Drawdowns

BABA vs. BABO - Drawdown Comparison

The maximum BABA drawdown since its inception was -80.09%, which is greater than BABO's maximum drawdown of -29.37%. Use the drawdown chart below to compare losses from any high point for BABA and BABO.

Drawdown Indicators

	BABA	BABO	Difference
Max Drawdown Largest peak-to-trough decline	-80.09%	-29.37%	-50.72%
Max Drawdown (1Y) Largest decline over 1 year	-36.77%	-29.37%	-7.40%
Max Drawdown (3Y) Largest decline over 3 years	-36.77%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-72.48%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-80.09%	—	—
Current Drawdown Current decline from peak	-57.76%	-26.47%	-31.29%
Average Drawdown Average peak-to-trough decline	-37.51%	-13.68%	-23.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	18.62%	14.49%	+4.13%

Volatility

BABA vs. BABO - Volatility Comparison

Alibaba Group Holding Limited (BABA) has a higher volatility of 14.74% compared to YieldMax BABA Option Income Strategy ETF (BABO) at 12.03%. This indicates that BABA's price experiences larger fluctuations and is considered to be riskier than BABO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BABA	BABO	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.74%	12.03%	+2.71%
Volatility (6M) Calculated over the trailing 6-month period	28.96%	24.11%	+4.85%
Volatility (1Y) Calculated over the trailing 1-year period	43.68%	35.12%	+8.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	51.36%	36.77%	+14.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	43.38%	36.77%	+6.61%

Dividends

BABA vs. BABO - Dividend Comparison

BABA's dividend yield for the trailing twelve months is around 1.57%, less than BABO's 85.81% yield.

Position	TTM	2025	2024	2023
BABA Alibaba Group Holding Limited	1.57%	1.36%	1.96%	1.29%
BABO YieldMax BABA Option Income Strategy ETF	85.81%	85.50%	20.65%	0.00%

Frequently Asked Questions

Can I hold both BABA and BABO in my portfolio?

With a correlation of 0.98, BABA and BABO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, BABA or BABO?

BABA has higher volatility (14.74%) compared to BABO (12.03%). In terms of maximum drawdown, BABA dropped -80.09% vs BABO's -29.37%.

Which has better risk-adjusted returns?

BABA currently has the higher Sharpe Ratio (0.29 vs 0.25), 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.