BLW vs. BCAT

Last updated Jun 3, 2026

BLW (BlackRock Limited Duration Income Trust) and BCAT (BlackRock Capital Allocation Trust) are both stocks. Both are in the Financial Services sector — BLW in Asset Management, BCAT in Capital Markets. Over the past 5 years, BLW returned 3.00%/yr vs 8.20%/yr for BCAT. At a 0.39 correlation, their price movements are largely independent.

Performance

BLW vs. BCAT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BlackRock Limited Duration Income Trust (BLW) and BlackRock Capital Allocation Trust (BCAT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BLW achieves a -5.11% return, which is significantly lower than BCAT's 22.45% return.

BLW

• 1D: -0.24%
• 1M: -2.00%
• YTD: -5.11%
• 6M: -5.02%
• 1Y: -1.66%
• 3Y*: 8.92%
• 5Y*: 3.00%
• 10Y*: 6.50%

BCAT

• 1D: -0.25%
• 1M: 6.35%
• YTD: 22.45%
• 6M: 22.72%
• 1Y: 30.79%
• 3Y*: 21.60%
• 5Y*: 8.20%
• 10Y*: —

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

BLW vs. BCAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
BLW BlackRock Limited Duration Income Trust	-5.11%	7.17%	11.06%	17.29%	-15.92%	13.52%	11.40%
BCAT BlackRock Capital Allocation Trust	22.45%	16.78%	19.37%	19.30%	-22.64%	-5.21%	9.35%

Correlation

The correlation between BLW and BCAT 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	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.42
Correlation (All Time) Calculated using the full available price history since Sep 28, 2020	0.39

The correlation between BLW and BCAT shifts across timeframes, from 0.32 (1 year) to 0.42 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

BLW vs. BCAT — Risk / Return Rank

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

BLW

BLW Risk / Return Rank: 30
BLW Sharpe Ratio Rank: 31
BLW Sortino Ratio Rank: 24
BLW Omega Ratio Rank: 24
BLW Calmar Ratio Rank: 36
BLW Martin Ratio Rank: 33

BCAT

BCAT Risk / Return Rank: 92
BCAT Sharpe Ratio Rank: 93
BCAT Sortino Ratio Rank: 94
BCAT Omega Ratio Rank: 92
BCAT Calmar Ratio Rank: 88
BCAT Martin Ratio Rank: 95

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.

BLW vs. BCAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BlackRock Limited Duration Income Trust (BLW) and BlackRock Capital Allocation Trust (BCAT). 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.

	BLW	BCAT	Difference
Sharpe ratio Return per unit of total volatility	-0.21	2.81	-3.02
Sortino ratio Return per unit of downside risk	-0.24	3.89	-4.13
Omega ratio Gain probability vs. loss probability	0.97	1.50	-0.53
Calmar ratio Return relative to maximum drawdown	-0.12	4.05	-4.16
Martin ratio Return relative to average drawdown	-0.38	19.33	-19.72
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BLW vs. BCAT - Sharpe Ratio Comparison

The current BLW Sharpe Ratio is -0.21, which is lower than the BCAT Sharpe Ratio of 2.81. The chart below compares the historical Sharpe Ratios of BLW and BCAT, 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

	BLW	BCAT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.21	2.81	-3.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.24	0.54	-0.30
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.45	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	0.57	-0.17

Drawdowns

BLW vs. BCAT - Drawdown Comparison

The maximum BLW drawdown since its inception was -44.13%, which is greater than BCAT's maximum drawdown of -36.13%. Use the drawdown chart below to compare losses from any high point for BLW and BCAT.

Drawdown Indicators

	BLW	BCAT	Difference
Max Drawdown Largest peak-to-trough decline	-44.13%	-36.13%	-8.00%
Max Drawdown (1Y) Largest decline over 1 year	-11.19%	-7.98%	-3.21%
Max Drawdown (3Y) Largest decline over 3 years	-11.19%	-13.69%	+2.50%
Max Drawdown (5Y) Largest decline over 5 years	-26.30%	-35.03%	+8.73%
Max Drawdown (10Y) Largest decline over 10 years	-41.85%	—	—
Current Drawdown Current decline from peak	-7.13%	-0.25%	-6.88%
Average Drawdown Average peak-to-trough decline	-6.04%	-12.81%	+6.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.40%	1.67%	+1.73%

Volatility

BLW vs. BCAT - Volatility Comparison

The current volatility for BlackRock Limited Duration Income Trust (BLW) is 2.36%, while BlackRock Capital Allocation Trust (BCAT) has a volatility of 2.89%. This indicates that BLW experiences smaller price fluctuations and is considered to be less risky than BCAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BLW	BCAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.36%	2.89%	-0.53%
Volatility (6M) Calculated over the trailing 6-month period	6.91%	8.48%	-1.57%
Volatility (1Y) Calculated over the trailing 1-year period	7.90%	11.07%	-3.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.32%	15.21%	-2.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.59%	15.91%	-1.32%

Dividends

BLW vs. BCAT - Dividend Comparison

BLW's dividend yield for the trailing twelve months is around 10.88%, less than BCAT's 20.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BCAT BlackRock Capital Allocation Trust	20.05%	23.45%	17.48%	10.08%	9.01%	6.42%	0.48%	0.00%	0.00%	0.00%	0.00%	0.00%
BLW BlackRock Limited Duration Income Trust	10.88%	9.89%	9.39%	8.63%	8.26%	6.99%	7.39%	6.27%	7.14%	6.24%	9.68%	8.26%

Financials

Frequently Asked Questions

Can I hold both BLW and BCAT in my portfolio?

BLW and BCAT 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, BLW or BCAT?

BCAT has higher volatility (2.89%) compared to BLW (2.36%). In terms of maximum drawdown, BLW dropped -44.13% vs BCAT's -36.13%.

Which has better risk-adjusted returns?

BCAT currently has the higher Sharpe Ratio (2.81 vs -0.21), 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.