DGRO vs. ARDC

Last updated Jun 13, 2026

DGRO (iShares Core Dividend Growth ETF) is Large Cap Growth Equities fund tracking the Morningstar US Dividend Growth Index, while ARDC (Ares Dynamic Credit Allocation Fund, Inc.) is a stock. Over the past 10 years, DGRO returned 13.52%/yr vs 8.32%/yr for ARDC. At a 0.37 correlation, their price movements are largely independent.

Performance

DGRO vs. ARDC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core Dividend Growth ETF (DGRO) and Ares Dynamic Credit Allocation Fund, Inc. (ARDC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DGRO achieves a 9.86% return, which is significantly higher than ARDC's -1.07% return. Over the past 10 years, DGRO has outperformed ARDC with an annualized return of 13.52%, while ARDC has yielded a comparatively lower 8.32% annualized return.

DGRO

• 1D: 0.69%
• 1M: 3.74%
• YTD: 9.86%
• 6M: 9.27%
• 1Y: 22.26%
• 3Y*: 16.74%
• 5Y*: 10.82%
• 10Y*: 13.52%

ARDC

• 1D: 0.24%
• 1M: -1.38%
• YTD: -1.07%
• 6M: -0.45%
• 1Y: -2.63%
• 3Y*: 12.24%
• 5Y*: 4.85%
• 10Y*: 8.32%

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

DGRO vs. ARDC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DGRO iShares Core Dividend Growth ETF	9.86%	15.69%	16.62%	10.47%	-7.91%	26.64%	9.50%	29.87%	-2.38%	23.00%
ARDC Ares Dynamic Credit Allocation Fund, Inc.	-1.07%	-3.10%	21.05%	32.35%	-22.21%	23.12%	2.56%	21.26%	-8.80%	17.63%

Correlation

The correlation between DGRO and ARDC is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (3Y) Calculated over the trailing 3-year period	0.33
Correlation (5Y) Calculated over the trailing 5-year period	0.41
Correlation (10Y) Calculated over the trailing 10-year period	0.37
Correlation (All Time) Calculated using the full available price history since Jun 12, 2014	0.37

The correlation between DGRO and ARDC shifts across timeframes, from 0.27 (1 year) to 0.41 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

DGRO vs. ARDC — Risk / Return Rank

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

DGRO

DGRO Risk / Return Rank: 82
DGRO Sharpe Ratio Rank: 84
DGRO Sortino Ratio Rank: 87
DGRO Omega Ratio Rank: 82
DGRO Calmar Ratio Rank: 77
DGRO Martin Ratio Rank: 79

ARDC

ARDC Risk / Return Rank: 31
ARDC Sharpe Ratio Rank: 31
ARDC Sortino Ratio Rank: 24
ARDC Omega Ratio Rank: 25
ARDC Calmar Ratio Rank: 37
ARDC Martin Ratio Rank: 36

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.

DGRO vs. ARDC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core Dividend Growth ETF (DGRO) and Ares Dynamic Credit Allocation Fund, Inc. (ARDC). 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.

	DGRO	ARDC	Difference
Sharpe ratio: Return per unit of total volatility	2.34	-0.28	+2.62
Sortino ratio: Return per unit of downside risk	3.40	-0.33	+3.72
Omega ratio: Gain probability vs. loss probability	1.42	0.96	+0.46
Calmar ratio: Return relative to maximum drawdown	3.46	-0.17	+3.63
Martin ratio: Return relative to average drawdown	13.36	-0.35	+13.72

DGRO vs. ARDC - Sharpe Ratio Comparison

The current DGRO Sharpe Ratio is 2.34, which is higher than the ARDC Sharpe Ratio of -0.28. The chart below compares the historical Sharpe Ratios of DGRO and ARDC, 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

DGRO vs. ARDC - Drawdown Comparison

The maximum DGRO drawdown since its inception was -35.10%, smaller than the maximum ARDC drawdown of -45.40%. Use the drawdown chart below to compare losses from any high point for DGRO and ARDC.

Drawdown Indicators

	DGRO	ARDC	Difference
Max Drawdown Largest peak-to-trough decline	-35.10%	-45.40%	+10.30%
Max Drawdown (1Y) Largest decline over 1 year	-6.47%	-15.57%	+9.10%
Max Drawdown (3Y) Largest decline over 3 years	-14.03%	-19.78%	+5.75%
Max Drawdown (5Y) Largest decline over 5 years	-19.31%	-26.48%	+7.17%
Max Drawdown (10Y) Largest decline over 10 years	-35.10%	-45.40%	+10.30%
Current Drawdown Current decline from peak	0.00%	-8.60%	+8.60%
Average Drawdown Average peak-to-trough decline	-3.44%	-6.64%	+3.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.68%	7.51%	-5.83%

Volatility

DGRO vs. ARDC - Volatility Comparison

iShares Core Dividend Growth ETF (DGRO) has a higher volatility of 2.64% compared to Ares Dynamic Credit Allocation Fund, Inc. (ARDC) at 2.42%. This indicates that DGRO's price experiences larger fluctuations and is considered to be riskier than ARDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DGRO	ARDC	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.64%	2.42%	+0.22%
Volatility (6M) Calculated over the trailing 6-month period	6.96%	7.13%	-0.17%
Volatility (1Y) Calculated over the trailing 1-year period	9.59%	9.47%	+0.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.83%	13.78%	+0.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.62%	16.86%	-0.24%

DGRO vs. ARDC - Expense Ratio Comparison

DGRO has a 0.08% expense ratio, which is higher than ARDC's 0.00% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

DGRO vs. ARDC - Dividend Comparison

DGRO's dividend yield for the trailing twelve months is around 1.94%, less than ARDC's 10.72% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARDC Ares Dynamic Credit Allocation Fund, Inc.	10.72%	10.19%	9.33%	9.85%	10.31%	7.16%	8.40%	8.40%	9.35%	7.58%	8.45%	10.51%
DGRO iShares Core Dividend Growth ETF	1.94%	2.09%	2.26%	2.45%	2.34%	1.93%	2.30%	2.21%	2.44%	2.03%	2.27%	2.52%

Frequently Asked Questions

Can I hold both DGRO and ARDC in my portfolio?

DGRO and ARDC have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DGRO or ARDC?

DGRO has higher volatility (2.64%) compared to ARDC (2.42%). In terms of maximum drawdown, DGRO dropped -35.10% vs ARDC's -45.40%.

Which has better risk-adjusted returns?

DGRO currently has the higher Sharpe Ratio (2.34 vs -0.28), 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.