BDCX vs. CSWC

Last updated Aug 1, 2026

BDCX (ETRACS Quarterly Pay 1.5X Leveraged MVIS BDC Index ETN) is Leveraged Equities fund tracking the MVIS US Business Development Companies (150%), while CSWC (Capital Southwest Corporation) is a stock. Over the past 5 years, BDCX returned 2.22%/yr vs 10.90%/yr for CSWC. Their 0.70 correlation means they have sometimes moved together and sometimes differently.

Performance

BDCX vs. CSWC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ETRACS Quarterly Pay 1.5X Leveraged MVIS BDC Index ETN (BDCX) and Capital Southwest Corporation (CSWC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BDCX achieves a -10.75% return, which is significantly lower than CSWC's 13.50% return.

BDCX

• 1D: -0.19%
• 1M: -2.20%
• 6M: -9.86%
• YTD: -10.75%
• 1Y: -18.23%
• 3Y*: 0.23%
• 5Y*: 2.22%
• 10Y*: —
• ALL TIME*: 11.61%

CSWC

• 1D: 0.00%
• 1M: 0.22%
• 6M: 6.37%
• YTD: 13.50%
• 1Y: 17.52%
• 3Y*: 16.12%
• 5Y*: 10.90%
• 10Y*: 16.81%
• ALL TIME*: 11.99%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
BDCX ETRACS Quarterly Pay 1.5X Leveraged MVIS BDC Index ETN	$38.67K	$35.86K	$42.25K
CSWC Capital Southwest Corporation	$14.98M	$15.10M	$15.36M

BDCX vs. CSWC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
BDCX ETRACS Quarterly Pay 1.5X Leveraged MVIS BDC Index ETN	-10.75%	-10.42%	15.32%	35.33%	-17.67%	52.70%	25.40%
CSWC Capital Southwest Corporation	13.50%	14.28%	2.14%	56.10%	-24.63%	57.40%	35.62%

Correlation

The correlation between BDCX and CSWC is 0.75, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.75
Correlation (3Y) Balances recent behavior with more history.	0.73
Correlation (5Y) Shows whether the relationship held over a longer period.	0.72
Correlation (All Time) Calculated using the full available price history since Jun 3, 2020	0.70

The correlation between BDCX and CSWC has been stable across timeframes, ranging from 0.70 to 0.75 - a consistent structural relationship.

Return for Risk

BDCX vs. CSWC — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

BDCX

BDCX Risk / Return Rank: 3
BDCX Sharpe Ratio Rank: 4
BDCX Sortino Ratio Rank: 4
BDCX Omega Ratio Rank: 4
BDCX Calmar Ratio Rank: 3
BDCX Martin Ratio Rank: 2

CSWC

CSWC Risk / Return Rank: 68
CSWC Sharpe Ratio Rank: 72
CSWC Sortino Ratio Rank: 66
CSWC Omega Ratio Rank: 63
CSWC Calmar Ratio Rank: 67
CSWC Martin Ratio Rank: 72

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

BDCX vs. CSWC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ETRACS Quarterly Pay 1.5X Leveraged MVIS BDC Index ETN (BDCX) and Capital Southwest Corporation (CSWC). 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.

	BDCX	CSWC	Difference
Sharpe ratio: Return per unit of total volatility	-0.69	0.83	-1.53
Sortino ratio: Return per unit of downside risk	-0.89	1.30	-2.19
Omega ratio: Gain probability vs. loss probability	0.90	1.15	-0.25
Calmar ratio: Return relative to maximum drawdown	-0.74	1.01	-1.75
Martin ratio: Return relative to average drawdown	-1.28	3.24	-4.52

BDCX vs. CSWC - Sharpe Ratio Comparison

The current BDCX Sharpe Ratio is -0.69, which is lower than the CSWC Sharpe Ratio of 0.83. The chart below compares the historical Sharpe Ratios of BDCX and CSWC, 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

BDCX vs. CSWC - Drawdown Comparison

The maximum BDCX drawdown since its inception was -34.96%, smaller than the maximum CSWC drawdown of -68.33%. Use the drawdown chart below to compare losses from any high point for BDCX and CSWC.

Drawdown Indicators

	BDCX	CSWC	Difference
Max Drawdown Largest peak-to-trough decline	-34.96%	-68.33%	+33.37%
Max Drawdown (1Y) Largest decline over 1 year	-26.35%	-15.75%	-10.60%
Max Drawdown (3Y) Largest decline over 3 years	-33.39%	-27.74%	-5.65%
Max Drawdown (5Y) Largest decline over 5 years	-34.96%	-33.66%	-1.30%
Max Drawdown (10Y) Largest decline over 10 years	—	-61.15%	—
Current Drawdown Current decline from peak	-27.46%	-2.92%	-24.54%
Average Drawdown Average peak-to-trough decline	-10.50%	-18.29%	+7.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.28%	4.90%	+10.38%

Volatility

BDCX vs. CSWC - Volatility Comparison

ETRACS Quarterly Pay 1.5X Leveraged MVIS BDC Index ETN (BDCX) has a higher volatility of 7.16% compared to Capital Southwest Corporation (CSWC) at 4.33%. This indicates that BDCX's price experiences larger fluctuations and is considered to be riskier than CSWC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BDCX	CSWC	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.16%	4.33%	+2.83%
Volatility (6M) Calculated over the trailing 6-month period	22.67%	13.19%	+9.48%
Volatility (1Y) Calculated over the trailing 1-year period	28.36%	19.04%	+9.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.69%	22.21%	+4.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.87%	27.40%	-0.53%

Dividends

BDCX vs. CSWC - Dividend Comparison

BDCX's dividend yield for the trailing twelve months is around 21.64%, more than CSWC's 10.86% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BDCX ETRACS Quarterly Pay 1.5X Leveraged MVIS BDC Index ETN	21.64%	19.17%	15.28%	14.71%	17.47%	11.52%	6.32%	0.00%	0.00%	0.00%	0.00%	0.00%
CSWC Capital Southwest Corporation	10.86%	11.56%	11.59%	10.21%	12.46%	10.13%	11.49%	13.07%	10.77%	7.01%	2.35%	216.86%

Frequently Asked Questions

Can I hold both BDCX and CSWC in my portfolio?

BDCX and CSWC have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BDCX or CSWC?

BDCX has higher volatility (7.16%) compared to CSWC (4.33%). In terms of maximum drawdown, BDCX dropped -34.96% vs CSWC's -68.33%.

Which has better risk-adjusted returns?

CSWC currently has the higher Sharpe Ratio (0.83 vs -0.69), 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.