PBDC vs. ARCC
PBDC (Putnam BDC Income ETF) is Financials Equities fund actively managed by Franklin Templeton, while ARCC (Ares Capital Corporation) is a stock. Over the past 3 years, PBDC returned 5.94%/yr vs 8.79%/yr for ARCC. Their correlation of 0.84 suggests significant overlap in exposure.
Performance
PBDC vs. ARCC - Performance Comparison
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Returns By Period
In the year-to-date period, PBDC achieves a -8.72% return, which is significantly lower than ARCC's -2.93% return.
PBDC
- 1D
- -0.75%
- 1M
- -0.56%
- 6M
- -8.88%
- YTD
- -8.72%
- 1Y
- -13.79%
- 3Y*
- 5.94%
- 5Y*
- —
- 10Y*
- —
ARCC
- 1D
- -0.75%
- 1M
- -0.75%
- 6M
- -4.30%
- YTD
- -2.93%
- 1Y
- -10.06%
- 3Y*
- 8.79%
- 5Y*
- 8.45%
- 10Y*
- 12.89%
PBDC vs. ARCC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
PBDC Putnam BDC Income ETF | -8.72% | -1.77% | 19.43% | 30.52% | 10.38% |
ARCC Ares Capital Corporation | -2.93% | 1.07% | 19.78% | 20.03% | 12.66% |
Correlation
The correlation between PBDC and ARCC is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.88 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.85 |
Correlation (All Time) Calculated using the full available price history since Sep 30, 2022 | 0.84 |
The correlation between PBDC and ARCC has been stable across timeframes, ranging from 0.84 to 0.88 - a consistent structural relationship.
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Return for Risk
PBDC vs. ARCC — Risk / Return Rank
PBDC
ARCC
PBDC vs. ARCC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Putnam BDC Income ETF (PBDC) 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.
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.
| PBDC | ARCC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.20 | ||
| Sortino ratioReturn per unit of downside risk | -0.32 | ||
| Omega ratioGain probability vs. loss probability | 0.89 | 0.92 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | -0.69 | -0.52 | -0.17 |
| Martin ratioReturn relative to average drawdown | -1.14 | -0.89 | -0.24 |
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Drawdowns
PBDC vs. ARCC - Drawdown Comparison
The maximum PBDC drawdown since its inception was -20.47%, smaller than the maximum ARCC drawdown of -79.36%. Use the drawdown chart below to compare losses from any high point for PBDC and ARCC.
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Drawdown Indicators
| PBDC | ARCC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -20.47% | -79.36% | +58.89% |
Max Drawdown (1Y)Largest decline over 1 year | -20.15% | -19.35% | -0.80% |
Max Drawdown (3Y)Largest decline over 3 years | -20.47% | -19.35% | -1.12% |
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 | -16.27% | -11.64% | -4.63% |
Average DrawdownAverage peak-to-trough decline | -5.00% | -9.12% | +4.12% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 12.17% | 11.26% | +0.91% |
Volatility
PBDC vs. ARCC - Volatility Comparison
The current volatility for Putnam BDC Income ETF (PBDC) is 4.56%, while Ares Capital Corporation (ARCC) has a volatility of 4.86%. This indicates that PBDC 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.
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Volatility by Period
| PBDC | ARCC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.56% | 4.86% | -0.30% |
Volatility (6M)Calculated over the trailing 6-month period | 15.17% | 14.87% | +0.30% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.81% | 18.85% | -0.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.02% | 19.99% | -2.97% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.02% | 25.58% | -8.56% |
Dividends
PBDC vs. ARCC - Dividend Comparison
PBDC's dividend yield for the trailing twelve months is around 11.52%, more than ARCC's 10.30% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | 10.30% | 9.49% | 8.77% | 9.59% | 10.12% | 7.65% | 9.47% | 9.01% | 9.88% | 9.67% | 9.22% | 11.02% |
PBDC Putnam BDC Income ETF | 11.52% | 10.53% | 9.29% | 9.86% | 3.40% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
PBDC and ARCC have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ARCC has higher volatility (4.86%) compared to PBDC (4.56%). In terms of maximum drawdown, PBDC dropped -20.47% vs ARCC's -79.36%.
ARCC currently has the higher Sharpe Ratio (-0.54 vs -0.74), 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.
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