BABO vs. DBC

Last updated Jun 13, 2026

BABO (YieldMax BABA Option Income Strategy ETF) and DBC (Invesco DB Commodity Index Tracking Fund) are both exchange-traded funds - BABO is a Derivative Income fund actively managed by YieldMax, while DBC is a Commodities fund tracking the DBIQ Optimum Yield Diversified Commodity Index Excess Return. BABO is actively managed, while DBC is passively managed. Over the past year, BABO returned -1.50% vs 30.29% for DBC. At a 0.11 correlation, their price movements are largely independent. BABO charges 0.99%/yr vs 0.85%/yr for DBC.

Performance

BABO vs. DBC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in YieldMax BABA Option Income Strategy ETF (BABO) and Invesco DB Commodity Index Tracking Fund (DBC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BABO achieves a -20.64% return, which is significantly lower than DBC's 27.68% return.

BABO

• 1D: -0.37%
• 1M: -16.79%
• YTD: -20.64%
• 6M: -24.20%
• 1Y: -1.50%
• 3Y*: —
• 5Y*: —
• 10Y*: —

DBC

• 1D: -1.04%
• 1M: -8.35%
• YTD: 27.68%
• 6M: 28.76%
• 1Y: 30.29%
• 3Y*: 12.92%
• 5Y*: 11.29%
• 10Y*: 8.27%

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

BABO vs. DBC - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BABO YieldMax BABA Option Income Strategy ETF	-20.64%	46.84%	0.65%
DBC Invesco DB Commodity Index Tracking Fund	27.68%	8.10%	2.93%

Correlation

The correlation between BABO and DBC is 0.01, 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	0.01
Correlation (All Time) Calculated using the full available price history since Aug 8, 2024	0.11

The correlation between BABO and DBC shifts across timeframes, from 0.01 (1 year) to 0.11 (all time), reflecting how their relationship changes across market environments.

Return for Risk

BABO vs. DBC — Risk / Return Rank

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

BABO

BABO Risk / Return Rank: 8
BABO Sharpe Ratio Rank: 8
BABO Sortino Ratio Rank: 9
BABO Omega Ratio Rank: 9
BABO Calmar Ratio Rank: 8
BABO Martin Ratio Rank: 8

DBC

DBC Risk / Return Rank: 64
DBC Sharpe Ratio Rank: 63
DBC Sortino Ratio Rank: 59
DBC Omega Ratio Rank: 60
DBC Calmar Ratio Rank: 77
DBC Martin Ratio Rank: 61

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. DBC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for YieldMax BABA Option Income Strategy ETF (BABO) and Invesco DB Commodity Index Tracking Fund (DBC). 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.

	BABO	DBC	Difference
Sharpe ratio: Return per unit of total volatility	-0.12	1.82	-1.94
Sortino ratio: Return per unit of downside risk	0.08	2.42	-2.35
Omega ratio: Gain probability vs. loss probability	1.01	1.32	-0.31
Calmar ratio: Return relative to maximum drawdown	-0.13	3.48	-3.61
Martin ratio: Return relative to average drawdown	-0.28	9.64	-9.93

BABO vs. DBC - Sharpe Ratio Comparison

The current BABO Sharpe Ratio is -0.12, which is lower than the DBC Sharpe Ratio of 1.82. The chart below compares the historical Sharpe Ratios of BABO and DBC, 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

BABO vs. DBC - Drawdown Comparison

The maximum BABO drawdown since its inception was -33.33%, smaller than the maximum DBC drawdown of -76.36%. Use the drawdown chart below to compare losses from any high point for BABO and DBC.

Drawdown Indicators

	BABO	DBC	Difference
Max Drawdown Largest peak-to-trough decline	-33.33%	-76.36%	+43.03%
Max Drawdown (1Y) Largest decline over 1 year	-33.33%	-9.91%	-23.42%
Max Drawdown (3Y) Largest decline over 3 years	—	-13.82%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-27.34%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-41.71%	—
Current Drawdown Current decline from peak	-33.33%	-26.14%	-7.19%
Average Drawdown Average peak-to-trough decline	-13.90%	-46.19%	+32.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.34%	3.57%	+11.77%

Volatility

BABO vs. DBC - Volatility Comparison

YieldMax BABA Option Income Strategy ETF (BABO) has a higher volatility of 8.72% compared to Invesco DB Commodity Index Tracking Fund (DBC) at 5.20%. This indicates that BABO's price experiences larger fluctuations and is considered to be riskier than DBC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BABO	DBC	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.72%	5.20%	+3.52%
Volatility (6M) Calculated over the trailing 6-month period	24.44%	16.11%	+8.33%
Volatility (1Y) Calculated over the trailing 1-year period	35.33%	18.94%	+16.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	36.67%	19.22%	+17.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	36.67%	17.82%	+18.85%

BABO vs. DBC - Expense Ratio Comparison

BABO has a 0.99% expense ratio, which is higher than DBC's 0.85% expense ratio.

Dividends

BABO vs. DBC - Dividend Comparison

BABO's dividend yield for the trailing twelve months is around 98.48%, more than DBC's 2.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
BABO YieldMax BABA Option Income Strategy ETF	98.48%	85.50%	20.65%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
DBC Invesco DB Commodity Index Tracking Fund	2.61%	3.33%	5.22%	4.94%	0.59%	0.00%	0.00%	1.59%	1.30%

Frequently Asked Questions

Can I hold both BABO and DBC in my portfolio?

BABO and DBC have a correlation of 0.01, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BABO or DBC?

BABO has higher volatility (8.72%) compared to DBC (5.20%). In terms of maximum drawdown, BABO dropped -33.33% vs DBC's -76.36%.

Which ETF is better, BABO or DBC?

On 1-year performance, DBC leads with 30.29% vs -1.50% for BABO. On fees, DBC is cheaper at 0.85% per year. On volatility, DBC has been the lower-risk option at 5.20%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BABO or DBC?

Over the 1-year period, DBC has performed better with a 30.29% return vs -1.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BABO or DBC?

DBC is cheaper with a 0.85% expense ratio, compared with 0.99% for BABO.

Which ETF pays a higher dividend yield, BABO or DBC?

BABO has the higher dividend yield at 98.48%, compared with 2.61% for DBC.

What is the main difference between BABO and DBC?

BABO is categorized as Derivative Income, while DBC is Commodities. They also come from different issuers: YieldMax and Invesco. Their fees differ too: 0.99% for BABO and 0.85% for DBC.

Which has better risk-adjusted returns?

DBC currently has the higher Sharpe Ratio (1.82 vs -0.12), 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.