MSDL vs. ARCC
MSDL (Morgan Stanley Direct Lending Fund) and ARCC (Ares Capital Corporation) are both stocks. Both operate in the Asset Management industry within the Financial Services sector. Over the past year, MSDL returned -13.06% vs -6.58% for ARCC. At a 0.48 correlation, their price movements are largely independent.
Performance
MSDL vs. ARCC - Performance Comparison
Loading charts...
Returns By Period
The year-to-date returns for both stocks are quite close, with MSDL having a -5.04% return and ARCC slightly lower at -5.14%.
MSDL
- 1D
- -2.88%
- 1M
- -3.81%
- YTD
- -5.04%
- 6M
- -7.33%
- 1Y
- -13.06%
- 3Y*
- —
- 5Y*
- —
- 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%
MSDL vs. ARCC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
MSDL Morgan Stanley Direct Lending Fund | -5.04% | -10.85% | 10.95% |
ARCC Ares Capital Corporation | -5.14% | 1.07% | 18.01% |
Correlation
The correlation between MSDL 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 (All Time) Calculated using the full available price history since Jan 25, 2024 | 0.48 |
Over the past year, MSDL and ARCC have become more correlated (0.69) than their long-term average of 0.48, meaning their price movements have been converging.
Fundamentals
MSDL:
$1.30B
ARCC:
$13.41B
MSDL:
$1.54
ARCC:
$1.63
MSDL:
9.83
ARCC:
11.46
MSDL:
0.14
ARCC:
1.72
MSDL:
4.19
ARCC:
5.01
MSDL:
0.77
ARCC:
0.95
MSDL:
$313.72M
ARCC:
$2.63B
MSDL:
$139.11M
ARCC:
$1.86B
MSDL:
$126.37M
ARCC:
$2.05B
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
MSDL vs. ARCC — Risk / Return Rank
MSDL
ARCC
MSDL vs. ARCC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Morgan Stanley Direct Lending Fund (MSDL) 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.
| MSDL | ARCC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.30 | ||
| Sortino ratioReturn per unit of downside risk | -0.47 | ||
| Omega ratioGain probability vs. loss probability | 0.90 | 0.95 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | -0.53 | -0.34 | -0.19 |
| Martin ratioReturn relative to average drawdown | -0.98 | -0.63 | -0.35 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| MSDL | ARCC | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.66 | -0.36 | -0.30 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.43 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.49 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.11 | 0.37 | -0.49 |
Drawdowns
MSDL vs. ARCC - Drawdown Comparison
The maximum MSDL drawdown since its inception was -29.68%, smaller than the maximum ARCC drawdown of -79.36%. Use the drawdown chart below to compare losses from any high point for MSDL and ARCC.
Loading charts...
Drawdown Indicators
| MSDL | ARCC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -29.68% | -79.36% | +49.68% |
Max Drawdown (1Y)Largest decline over 1 year | -24.80% | -19.35% | -5.45% |
Max Drawdown (3Y)Largest decline over 3 years | — | -19.35% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -21.76% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -56.77% | — |
Current DrawdownCurrent decline from peak | -21.45% | -13.66% | -7.79% |
Average DrawdownAverage peak-to-trough decline | -12.04% | -9.10% | -2.94% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 13.37% | 10.48% | +2.89% |
Volatility
MSDL vs. ARCC - Volatility Comparison
Morgan Stanley Direct Lending Fund (MSDL) has a higher volatility of 5.77% compared to Ares Capital Corporation (ARCC) at 3.94%. This indicates that MSDL's price experiences larger fluctuations and is considered to be riskier than ARCC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| MSDL | ARCC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.77% | 3.94% | +1.83% |
Volatility (6M)Calculated over the trailing 6-month period | 16.16% | 14.71% | +1.45% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.93% | 18.40% | +1.53% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.16% | 19.96% | +3.20% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.16% | 25.58% | -2.42% |
Dividends
MSDL vs. ARCC - Dividend Comparison
MSDL's dividend yield for the trailing twelve months is around 12.87%, 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% |
MSDL Morgan Stanley Direct Lending Fund | 12.87% | 12.14% | 10.65% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Financials
MSDL vs. ARCC - Financials Comparison
This section allows you to compare key financial metrics between Morgan Stanley Direct Lending Fund and Ares Capital Corporation. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
MSDL vs. ARCC - Profitability Comparison
MSDL - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Morgan Stanley Direct Lending Fund reported a gross profit of 0.00 and revenue of 89.06M. Therefore, the gross margin over that period was 0.0%.
ARCC - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Ares Capital Corporation reported a gross profit of 550.00M and revenue of 763.00M. Therefore, the gross margin over that period was 72.1%.
MSDL - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Morgan Stanley Direct Lending Fund reported an operating income of 0.00 and revenue of 89.06M, resulting in an operating margin of 0.0%.
ARCC - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Ares Capital Corporation reported an operating income of 404.00M and revenue of 763.00M, resulting in an operating margin of 53.0%.
MSDL - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Morgan Stanley Direct Lending Fund reported a net income of 41.34M and revenue of 89.06M, resulting in a net margin of 46.4%.
ARCC - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Ares Capital Corporation reported a net income of 92.00M and revenue of 763.00M, resulting in a net margin of 12.1%.
Frequently Asked Questions
MSDL 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.
MSDL has higher volatility (5.77%) compared to ARCC (3.94%). In terms of maximum drawdown, MSDL dropped -29.68% vs ARCC's -79.36%.
ARCC currently has the higher Sharpe Ratio (-0.36 vs -0.66), 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.
Find the right allocation for MSDL and ARCC
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer