BABO vs. BABA

Last updated Jun 4, 2026

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

Performance

BABO vs. BABA - Performance Comparison

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

Returns By Period

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

BABO

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

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%

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

BABO vs. BABA - Yearly Performance Comparison

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

Correlation

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

Return for Risk

BABO vs. BABA — Risk / Return Rank

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

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

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

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.

BABO vs. BABA - Risk-Adjusted Trends Comparison

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

	BABO	BABA	Difference
Sharpe ratio: Return per unit of total volatility	0.25	0.29	-0.04
Sortino ratio: Return per unit of downside risk	0.64	0.81	-0.17
Omega ratio: Gain probability vs. loss probability	1.07	1.09	-0.01
Calmar ratio: Return relative to maximum drawdown	0.29	0.34	-0.05
Martin ratio: Return relative to average drawdown	0.60	0.67	-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.

BABO vs. BABA - Sharpe Ratio Comparison

The current BABO Sharpe Ratio is 0.25, which is comparable to the BABA Sharpe Ratio of 0.29. The chart below compares the historical Sharpe Ratios of BABO and BABA, 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

	BABO	BABA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.25	0.29	-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	0.40	0.07	+0.33

Drawdowns

BABO vs. BABA - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

BABO vs. BABA - Volatility Comparison

The current volatility for YieldMax BABA Option Income Strategy ETF (BABO) is 12.03%, while Alibaba Group Holding Limited (BABA) has a volatility of 14.74%. This indicates that BABO experiences smaller price fluctuations and is considered to be less risky than BABA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

Dividends

BABO vs. BABA - Dividend Comparison

BABO's dividend yield for the trailing twelve months is around 85.81%, more than BABA's 1.57% 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 BABO and BABA in my portfolio?

With a correlation of 0.98, BABO and BABA 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, BABO or BABA?

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

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.