HYIN vs. ARCC

Last updated Jun 4, 2026

HYIN (WisdomTree Alternative Income Fund) is Diversified Portfolio fund tracking the Gapstow Liquid Alternative Credit Index, while ARCC (Ares Capital Corporation) is a stock. Over the past 5 years, HYIN returned -0.74%/yr vs 8.64%/yr for ARCC. A 0.68 correlation means they provide meaningful diversification when combined.

Performance

HYIN vs. ARCC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Alternative Income Fund (HYIN) 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, HYIN achieves a -6.43% return, which is significantly lower than ARCC's -5.14% return.

HYIN

• 1D: -1.40%
• 1M: -4.77%
• YTD: -6.43%
• 6M: -7.89%
• 1Y: -4.98%
• 3Y*: 4.61%
• 5Y*: -0.74%
• 10Y*: —

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)

HYIN vs. ARCC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
HYIN WisdomTree Alternative Income Fund	-6.43%	-0.46%	7.39%	21.84%	-21.14%	3.08%
ARCC Ares Capital Corporation	-5.14%	1.07%	19.78%	20.03%	-3.84%	18.13%

Correlation

The correlation between HYIN and ARCC is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (All Time) Calculated using the full available price history since May 7, 2021	0.68

The correlation between HYIN and ARCC has been stable across timeframes, ranging from 0.62 to 0.69 - a consistent structural relationship.

Return for Risk

HYIN vs. ARCC — Risk / Return Rank

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

HYIN

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

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.

HYIN vs. ARCC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Alternative Income Fund (HYIN) 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.

	HYIN	ARCC	Difference
Sharpe ratio: Return per unit of total volatility	-0.39	-0.36	-0.03
Sortino ratio: Return per unit of downside risk	-0.47	-0.38	-0.09
Omega ratio: Gain probability vs. loss probability	0.95	0.95	-0.01
Calmar ratio: Return relative to maximum drawdown	-0.32	-0.34	+0.02
Martin ratio: Return relative to average drawdown	-0.69	-0.63	-0.06
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HYIN vs. ARCC - Sharpe Ratio Comparison

The current HYIN Sharpe Ratio is -0.39, which is comparable to the ARCC Sharpe Ratio of -0.36. The chart below compares the historical Sharpe Ratios of HYIN 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

	HYIN	ARCC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.39	-0.36	-0.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.04	0.43	-0.48
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.49	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.01	0.37	-0.39

Drawdowns

HYIN vs. ARCC - Drawdown Comparison

The maximum HYIN drawdown since its inception was -31.10%, smaller than the maximum ARCC drawdown of -79.36%. Use the drawdown chart below to compare losses from any high point for HYIN and ARCC.

Drawdown Indicators

	HYIN	ARCC	Difference
Max Drawdown Largest peak-to-trough decline	-31.10%	-79.36%	+48.26%
Max Drawdown (1Y) Largest decline over 1 year	-15.52%	-19.35%	+3.83%
Max Drawdown (3Y) Largest decline over 3 years	-15.85%	-19.35%	+3.50%
Max Drawdown (5Y) Largest decline over 5 years	-31.10%	-21.76%	-9.34%
Max Drawdown (10Y) Largest decline over 10 years	—	-56.77%	—
Current Drawdown Current decline from peak	-12.18%	-13.66%	+1.48%
Average Drawdown Average peak-to-trough decline	-9.02%	-9.10%	+0.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.24%	10.48%	-3.24%

Volatility

HYIN vs. ARCC - Volatility Comparison

The current volatility for WisdomTree Alternative Income Fund (HYIN) is 3.10%, while Ares Capital Corporation (ARCC) has a volatility of 3.94%. This indicates that HYIN 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

	HYIN	ARCC	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.10%	3.94%	-0.84%
Volatility (6M) Calculated over the trailing 6-month period	10.16%	14.71%	-4.55%
Volatility (1Y) Calculated over the trailing 1-year period	12.76%	18.40%	-5.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.80%	19.96%	-3.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.80%	25.58%	-8.78%

Dividends

HYIN vs. ARCC - Dividend Comparison

HYIN's dividend yield for the trailing twelve months is around 13.44%, more 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%
HYIN WisdomTree Alternative Income Fund	13.44%	12.58%	12.59%	11.71%	11.34%	4.13%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both HYIN and ARCC in my portfolio?

HYIN and ARCC have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HYIN or ARCC?

ARCC has higher volatility (3.94%) compared to HYIN (3.10%). In terms of maximum drawdown, HYIN dropped -31.10% vs ARCC's -79.36%.

Which has better risk-adjusted returns?

ARCC currently has the higher Sharpe Ratio (-0.36 vs -0.39), 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.