DBC vs. BABO

Last updated Jun 13, 2026

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

Performance

DBC vs. BABO - Performance Comparison

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

Returns By Period

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

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%

BABO

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

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

DBC vs. BABO - Yearly Performance Comparison

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

Correlation

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

Return for Risk

DBC vs. BABO — Risk / Return Rank

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

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

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

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.

DBC vs. BABO - Risk-Adjusted Trends Comparison

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

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

DBC vs. BABO - Sharpe Ratio Comparison

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

DBC vs. BABO - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

DBC vs. BABO - Volatility Comparison

The current volatility for Invesco DB Commodity Index Tracking Fund (DBC) is 5.20%, while YieldMax BABA Option Income Strategy ETF (BABO) has a volatility of 8.72%. This indicates that DBC experiences smaller price fluctuations and is considered to be less risky than BABO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

DBC vs. BABO - Expense Ratio Comparison

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

Dividends

DBC vs. BABO - Dividend Comparison

DBC's dividend yield for the trailing twelve months is around 2.61%, less than BABO's 98.48% 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 DBC and BABO in my portfolio?

DBC and BABO 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, DBC or BABO?

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

Which ETF is better, DBC or BABO?

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, DBC or BABO?

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, DBC or BABO?

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

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

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

What is the main difference between DBC and BABO?

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

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.