FCT vs. DSU

Last updated Jun 3, 2026

FCT (First Trust Senior Floating Rate Income Fund II) and DSU (BlackRock Debt Strategies Fund, Inc.) are both Bank Loan funds. Over the past 10 years, FCT returned 5.99%/yr vs 8.07%/yr for DSU. At a 0.37 correlation, their price movements are largely independent. FCT charges 0.03%/yr vs 2.47%/yr for DSU.

Performance

FCT vs. DSU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Senior Floating Rate Income Fund II (FCT) and BlackRock Debt Strategies Fund, Inc. (DSU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FCT achieves a 0.95% return, which is significantly higher than DSU's 0.76% return. Over the past 10 years, FCT has underperformed DSU with an annualized return of 5.99%, while DSU has yielded a comparatively higher 8.07% annualized return.

FCT

• 1D: 0.10%
• 1M: -0.85%
• YTD: 0.95%
• 6M: 7.80%
• 1Y: 9.53%
• 3Y*: 12.40%
• 5Y*: 5.15%
• 10Y*: 5.99%

DSU

• 1D: -0.10%
• 1M: -1.42%
• YTD: 0.76%
• 6M: 0.94%
• 1Y: 4.18%
• 3Y*: 12.99%
• 5Y*: 7.09%
• 10Y*: 8.07%

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

FCT vs. DSU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FCT First Trust Senior Floating Rate Income Fund II	0.95%	9.24%	14.91%	18.06%	-14.54%	13.72%	2.73%	20.13%	-8.07%	-1.07%
DSU BlackRock Debt Strategies Fund, Inc.	0.76%	5.97%	11.13%	30.34%	-15.51%	19.36%	1.60%	23.84%	-10.04%	10.68%

Correlation

The correlation between FCT and DSU is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.33
Correlation (3Y) Calculated over the trailing 3-year period	0.40
Correlation (5Y) Calculated over the trailing 5-year period	0.45
Correlation (10Y) Calculated over the trailing 10-year period	0.43
Correlation (All Time) Calculated using the full available price history since May 27, 2004	0.37

The correlation between FCT and DSU shifts across timeframes, from 0.33 (1 year) to 0.45 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

FCT vs. DSU — Risk / Return Rank

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

FCT

FCT Risk / Return Rank: 22
FCT Sharpe Ratio Rank: 16
FCT Sortino Ratio Rank: 25
FCT Omega Ratio Rank: 24
FCT Calmar Ratio Rank: 26
FCT Martin Ratio Rank: 18

DSU

DSU Risk / Return Rank: 6
DSU Sharpe Ratio Rank: 6
DSU Sortino Ratio Rank: 6
DSU Omega Ratio Rank: 6
DSU Calmar Ratio Rank: 6
DSU 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.

FCT vs. DSU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Senior Floating Rate Income Fund II (FCT) and BlackRock Debt Strategies Fund, Inc. (DSU). 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.

	FCT	DSU	Difference
Sharpe ratio Return per unit of total volatility	1.13	0.52	+0.62
Sortino ratio Return per unit of downside risk	2.10	0.83	+1.27
Omega ratio Gain probability vs. loss probability	1.26	1.10	+0.16
Calmar ratio Return relative to maximum drawdown	1.95	0.65	+1.30
Martin ratio Return relative to average drawdown	5.14	2.43	+2.72
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FCT vs. DSU - Sharpe Ratio Comparison

The current FCT Sharpe Ratio is 1.13, which is higher than the DSU Sharpe Ratio of 0.52. The chart below compares the historical Sharpe Ratios of FCT and DSU, 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

	FCT	DSU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.13	0.52	+0.62
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.43	0.61	-0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.45	0.51	-0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	0.23	+0.05

Drawdowns

FCT vs. DSU - Drawdown Comparison

The maximum FCT drawdown since its inception was -67.23%, smaller than the maximum DSU drawdown of -72.03%. Use the drawdown chart below to compare losses from any high point for FCT and DSU.

Drawdown Indicators

	FCT	DSU	Difference
Max Drawdown Largest peak-to-trough decline	-67.23%	-72.03%	+4.80%
Max Drawdown (1Y) Largest decline over 1 year	-5.04%	-7.21%	+2.17%
Max Drawdown (3Y) Largest decline over 3 years	-11.61%	-14.59%	+2.98%
Max Drawdown (5Y) Largest decline over 5 years	-23.86%	-24.23%	+0.37%
Max Drawdown (10Y) Largest decline over 10 years	-39.88%	-45.36%	+5.48%
Current Drawdown Current decline from peak	-1.15%	-1.72%	+0.57%
Average Drawdown Average peak-to-trough decline	-8.98%	-11.61%	+2.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.91%	1.93%	-0.02%

Volatility

FCT vs. DSU - Volatility Comparison

The current volatility for First Trust Senior Floating Rate Income Fund II (FCT) is 1.15%, while BlackRock Debt Strategies Fund, Inc. (DSU) has a volatility of 1.73%. This indicates that FCT experiences smaller price fluctuations and is considered to be less risky than DSU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FCT	DSU	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.15%	1.73%	-0.58%
Volatility (6M) Calculated over the trailing 6-month period	7.02%	6.19%	+0.83%
Volatility (1Y) Calculated over the trailing 1-year period	8.45%	8.12%	+0.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.03%	11.74%	+0.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.32%	15.92%	-2.60%

FCT vs. DSU - Expense Ratio Comparison

FCT has a 0.03% expense ratio, which is lower than DSU's 2.47% expense ratio.

Dividends

FCT vs. DSU - Dividend Comparison

FCT's dividend yield for the trailing twelve months is around 12.15%, which matches DSU's 12.14% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DSU BlackRock Debt Strategies Fund, Inc.	12.14%	11.64%	11.01%	9.70%	7.56%	6.21%	7.96%	7.43%	8.41%	6.98%	6.60%	8.07%
FCT First Trust Senior Floating Rate Income Fund II	12.15%	11.56%	11.25%	10.62%	9.03%	9.23%	9.88%	6.60%	6.49%	6.16%	6.11%	7.17%

Frequently Asked Questions

Can I hold both FCT and DSU in my portfolio?

FCT and DSU have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FCT or DSU?

DSU has higher volatility (1.73%) compared to FCT (1.15%). In terms of maximum drawdown, FCT dropped -67.23% vs DSU's -72.03%.

Which has better risk-adjusted returns?

FCT currently has the higher Sharpe Ratio (1.13 vs 0.52), 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.