BGB vs. ARCC

Last updated Jun 3, 2026

BGB (Blackstone GSO Strategic Credit Closed Fund) is High Yield Bonds fund actively managed by Blackstone, while ARCC (Ares Capital Corporation) is a stock. Over the past 10 years, BGB returned 6.46%/yr vs 12.56%/yr for ARCC. At a 0.31 correlation, their price movements are largely independent.

Performance

BGB vs. ARCC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Blackstone GSO Strategic Credit Closed Fund (BGB) and Ares Capital Corporation (ARCC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BGB achieves a -1.05% return, which is significantly higher than ARCC's -5.14% return. Over the past 10 years, BGB has underperformed ARCC with an annualized return of 6.46%, while ARCC has yielded a comparatively higher 12.56% annualized return.

BGB

• 1D: -0.13%
• 1M: 1.23%
• YTD: -1.05%
• 6M: -0.34%
• 1Y: 3.71%
• 3Y*: 12.61%
• 5Y*: 5.17%
• 10Y*: 6.46%

ARCC

• 1D: -1.53%
• 1M: -2.61%
• YTD: -5.14%
• 6M: -5.66%
• 1Y: -6.58%
• 3Y*: 9.07%
• 5Y*: 8.64%
• 10Y*: 12.56%

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

BGB vs. ARCC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BGB Blackstone GSO Strategic Credit Closed Fund	-1.05%	4.80%	18.69%	19.50%	-16.06%	15.41%	-4.69%	17.07%	-5.21%	10.09%
ARCC Ares Capital Corporation	-5.14%	1.07%	19.78%	20.03%	-3.84%	36.14%	0.86%	31.30%	8.81%	4.50%

Correlation

The correlation between BGB and ARCC is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.32
Correlation (3Y) Calculated over the trailing 3-year period	0.32
Correlation (5Y) Calculated over the trailing 5-year period	0.36
Correlation (10Y) Calculated over the trailing 10-year period	0.34
Correlation (All Time) Calculated using the full available price history since Sep 27, 2012	0.31

Return for Risk

BGB vs. ARCC — Risk / Return Rank

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

BGB

BGB Risk / Return Rank: 5
BGB Sharpe Ratio Rank: 6
BGB Sortino Ratio Rank: 5
BGB Omega Ratio Rank: 6
BGB Calmar Ratio Rank: 4
BGB Martin Ratio Rank: 4

ARCC

ARCC Risk / Return Rank: 25
ARCC Sharpe Ratio Rank: 25
ARCC Sortino Ratio Rank: 21
ARCC Omega Ratio Rank: 22
ARCC Calmar Ratio Rank: 29
ARCC Martin Ratio Rank: 29

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.

BGB vs. ARCC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Blackstone GSO Strategic Credit Closed Fund (BGB) and Ares Capital Corporation (ARCC). 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.

	BGB	ARCC	Difference
Sharpe ratio Return per unit of total volatility	0.48	-0.36	+0.84
Sortino ratio Return per unit of downside risk	0.74	-0.38	+1.12
Omega ratio Gain probability vs. loss probability	1.09	0.95	+0.14
Calmar ratio Return relative to maximum drawdown	0.33	-0.34	+0.67
Martin ratio Return relative to average drawdown	0.70	-0.63	+1.33
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BGB vs. ARCC - Sharpe Ratio Comparison

The current BGB Sharpe Ratio is 0.48, which is higher than the ARCC Sharpe Ratio of -0.36. The chart below compares the historical Sharpe Ratios of BGB and ARCC, 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

	BGB	ARCC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.48	-0.36	+0.84
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.48	0.43	+0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.40	0.49	-0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.29	0.37	-0.08

Drawdowns

BGB vs. ARCC - Drawdown Comparison

The maximum BGB drawdown since its inception was -44.87%, smaller than the maximum ARCC drawdown of -79.36%. Use the drawdown chart below to compare losses from any high point for BGB and ARCC.

Drawdown Indicators

	BGB	ARCC	Difference
Max Drawdown Largest peak-to-trough decline	-44.87%	-79.36%	+34.49%
Max Drawdown (1Y) Largest decline over 1 year	-9.06%	-19.35%	+10.29%
Max Drawdown (3Y) Largest decline over 3 years	-12.77%	-19.35%	+6.58%
Max Drawdown (5Y) Largest decline over 5 years	-21.23%	-21.76%	+0.53%
Max Drawdown (10Y) Largest decline over 10 years	-44.87%	-56.77%	+11.90%
Current Drawdown Current decline from peak	-4.41%	-13.66%	+9.25%
Average Drawdown Average peak-to-trough decline	-5.98%	-9.10%	+3.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.31%	10.48%	-6.17%

Volatility

BGB vs. ARCC - Volatility Comparison

The current volatility for Blackstone GSO Strategic Credit Closed Fund (BGB) is 1.84%, while Ares Capital Corporation (ARCC) has a volatility of 3.94%. This indicates that BGB experiences smaller price fluctuations and is considered to be less risky than ARCC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BGB	ARCC	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.84%	3.94%	-2.10%
Volatility (6M) Calculated over the trailing 6-month period	5.61%	14.71%	-9.10%
Volatility (1Y) Calculated over the trailing 1-year period	7.76%	18.40%	-10.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.92%	19.96%	-9.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.11%	25.58%	-9.47%

Dividends

BGB vs. ARCC - Dividend Comparison

BGB's dividend yield for the trailing twelve months is around 8.54%, less than ARCC's 10.28% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARCC Ares Capital Corporation	10.28%	9.49%	8.77%	9.59%	10.12%	7.65%	9.47%	9.01%	9.88%	9.67%	9.22%	11.02%
BGB Blackstone GSO Strategic Credit Closed Fund	8.54%	8.58%	9.26%	10.69%	7.35%	6.63%	8.77%	9.30%	11.18%	7.35%	8.76%	9.42%

Frequently Asked Questions

Can I hold both BGB and ARCC in my portfolio?

BGB and ARCC have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BGB or ARCC?

ARCC has higher volatility (3.94%) compared to BGB (1.84%). In terms of maximum drawdown, BGB dropped -44.87% vs ARCC's -79.36%.

Which has better risk-adjusted returns?

BGB currently has the higher Sharpe Ratio (0.48 vs -0.36), 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.