BARAX vs. NCTWX

Last updated Jun 4, 2026

BARAX (Baron Asset Fund) and NCTWX (Nicholas II Fund) are both Mid Cap Growth Equities funds. Over the past 10 years, BARAX returned 10.51%/yr vs 9.25%/yr for NCTWX. Their correlation of 0.85 suggests significant overlap in exposure. BARAX charges 1.29%/yr vs 0.59%/yr for NCTWX.

Performance

BARAX vs. NCTWX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Baron Asset Fund (BARAX) and Nicholas II Fund (NCTWX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BARAX achieves a -3.88% return, which is significantly lower than NCTWX's -0.24% return. Over the past 10 years, BARAX has outperformed NCTWX with an annualized return of 10.51%, while NCTWX has yielded a comparatively lower 9.25% annualized return.

BARAX

• 1D: -0.63%
• 1M: 1.74%
• YTD: -3.88%
• 6M: 1.00%
• 1Y: 0.55%
• 3Y*: 8.21%
• 5Y*: 1.91%
• 10Y*: 10.51%

NCTWX

• 1D: -0.24%
• 1M: 4.92%
• YTD: -0.24%
• 6M: -0.85%
• 1Y: -1.51%
• 3Y*: 5.91%
• 5Y*: 2.76%
• 10Y*: 9.25%

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

BARAX vs. NCTWX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BARAX Baron Asset Fund	-3.88%	7.89%	10.35%	17.05%	-26.06%	13.88%	32.98%	37.64%	-0.15%	26.18%
NCTWX Nicholas II Fund	-0.24%	-1.27%	6.74%	19.89%	-18.03%	21.58%	15.73%	34.90%	-4.20%	25.65%

Correlation

The correlation between BARAX and NCTWX is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Jun 15, 1987	0.85

The correlation between BARAX and NCTWX has been stable across timeframes, ranging from 0.85 to 0.91 - a consistent structural relationship.

Return for Risk

BARAX vs. NCTWX — Risk / Return Rank

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

BARAX

BARAX Risk / Return Rank: 3
BARAX Sharpe Ratio Rank: 3
BARAX Sortino Ratio Rank: 3
BARAX Omega Ratio Rank: 3
BARAX Calmar Ratio Rank: 3
BARAX Martin Ratio Rank: 3

NCTWX

NCTWX Risk / Return Rank: 2
NCTWX Sharpe Ratio Rank: 2
NCTWX Sortino Ratio Rank: 2
NCTWX Omega Ratio Rank: 2
NCTWX Calmar Ratio Rank: 2
NCTWX Martin Ratio Rank: 2

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.

BARAX vs. NCTWX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Baron Asset Fund (BARAX) and Nicholas II Fund (NCTWX). 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.

	BARAX	NCTWX	Difference
Sharpe ratio Return per unit of total volatility	0.08	-0.05	+0.13
Sortino ratio Return per unit of downside risk	0.25	0.04	+0.21
Omega ratio Gain probability vs. loss probability	1.03	1.00	+0.02
Calmar ratio Return relative to maximum drawdown	0.11	-0.04	+0.16
Martin ratio Return relative to average drawdown	0.23	-0.11	+0.34
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BARAX vs. NCTWX - Sharpe Ratio Comparison

The current BARAX Sharpe Ratio is 0.08, which is higher than the NCTWX Sharpe Ratio of -0.05. The chart below compares the historical Sharpe Ratios of BARAX and NCTWX, 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

	BARAX	NCTWX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.08	-0.05	+0.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.10	0.15	-0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.53	0.51	+0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.49	0.58	-0.09

Drawdowns

BARAX vs. NCTWX - Drawdown Comparison

The maximum BARAX drawdown since its inception was -59.71%, which is greater than NCTWX's maximum drawdown of -46.46%. Use the drawdown chart below to compare losses from any high point for BARAX and NCTWX.

Drawdown Indicators

	BARAX	NCTWX	Difference
Max Drawdown Largest peak-to-trough decline	-59.71%	-46.46%	-13.25%
Max Drawdown (1Y) Largest decline over 1 year	-10.75%	-15.43%	+4.68%
Max Drawdown (3Y) Largest decline over 3 years	-17.82%	-20.63%	+2.81%
Max Drawdown (5Y) Largest decline over 5 years	-37.53%	-25.89%	-11.64%
Max Drawdown (10Y) Largest decline over 10 years	-37.53%	-36.61%	-0.92%
Current Drawdown Current decline from peak	-5.36%	-8.47%	+3.11%
Average Drawdown Average peak-to-trough decline	-11.42%	-6.89%	-4.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.20%	6.38%	-1.18%

Volatility

BARAX vs. NCTWX - Volatility Comparison

The current volatility for Baron Asset Fund (BARAX) is 3.28%, while Nicholas II Fund (NCTWX) has a volatility of 4.09%. This indicates that BARAX experiences smaller price fluctuations and is considered to be less risky than NCTWX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BARAX	NCTWX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.28%	4.09%	-0.81%
Volatility (6M) Calculated over the trailing 6-month period	10.83%	11.55%	-0.72%
Volatility (1Y) Calculated over the trailing 1-year period	14.75%	14.91%	-0.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.46%	18.09%	+1.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.79%	18.29%	+1.50%

BARAX vs. NCTWX - Expense Ratio Comparison

BARAX has a 1.29% expense ratio, which is higher than NCTWX's 0.59% expense ratio.

Dividends

BARAX vs. NCTWX - Dividend Comparison

BARAX's dividend yield for the trailing twelve months is around 11.97%, less than NCTWX's 12.46% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BARAX Baron Asset Fund	11.97%	11.51%	19.23%	3.48%	0.01%	7.65%	3.05%	1.78%	7.42%	7.25%	4.88%	11.50%
NCTWX Nicholas II Fund	12.46%	12.43%	5.21%	0.72%	3.92%	9.86%	3.79%	11.36%	12.57%	11.02%	5.11%	6.40%

Frequently Asked Questions

Can I hold both BARAX and NCTWX in my portfolio?

BARAX and NCTWX have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BARAX or NCTWX?

NCTWX has higher volatility (4.09%) compared to BARAX (3.28%). In terms of maximum drawdown, BARAX dropped -59.71% vs NCTWX's -46.46%.

Which has better risk-adjusted returns?

BARAX currently has the higher Sharpe Ratio (0.08 vs -0.05), 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.