PBDC vs. CAOS

Last updated Aug 2, 2026

PBDC (Putnam BDC Income ETF) and CAOS (Alpha Architect Tail Risk ETF) are both exchange-traded funds - PBDC is a Financials Equities fund actively managed by Franklin Templeton, while CAOS is a Options Trading fund actively managed by Alpha Architect. Both are actively managed. Over the past 3 years, PBDC returned 4.71%/yr vs 3.48%/yr for CAOS. Their 0.01 correlation means their historical movements had little consistent relationship. PBDC charges 13.49%/yr vs 0.63%/yr for CAOS.

Performance

PBDC vs. CAOS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Putnam BDC Income ETF (PBDC) and Alpha Architect Tail Risk ETF (CAOS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PBDC achieves a -9.20% return, which is significantly lower than CAOS's 0.76% return.

PBDC

• 1D: 0.11%
• 1M: -1.02%
• 6M: -8.00%
• YTD: -9.20%
• 1Y: -12.27%
• 3Y*: 4.71%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 11.83%

CAOS

• 1D: -0.06%
• 1M: -0.01%
• 6M: 0.16%
• YTD: 0.76%
• 1Y: 1.73%
• 3Y*: 3.48%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 4.70%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
CAOS Alpha Architect Tail Risk ETF	$6.81M	$5.39M	$5.09M
PBDC Putnam BDC Income ETF	$3.46M	$3.16M	$3.71M

PBDC vs. CAOS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
PBDC Putnam BDC Income ETF	-9.20%	-1.77%	19.43%	17.59%
CAOS Alpha Architect Tail Risk ETF	0.76%	2.55%	5.33%	7.43%

Correlation

The correlation between PBDC and CAOS is -0.26, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.26
Correlation (3Y) Balances recent behavior with more history.	-0.11
Correlation (All Time) Calculated using the full available price history since Mar 6, 2023	0.01

The correlation between PBDC and CAOS shifts across timeframes, from -0.26 (1 year) to 0.01 (all time), reflecting how their relationship changes across market environments.

Return for Risk

PBDC vs. CAOS — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

PBDC

PBDC Risk / Return Rank: 3
PBDC Sharpe Ratio Rank: 3
PBDC Sortino Ratio Rank: 4
PBDC Omega Ratio Rank: 4
PBDC Calmar Ratio Rank: 3
PBDC Martin Ratio Rank: 2

CAOS

CAOS Risk / Return Rank: 56
CAOS Sharpe Ratio Rank: 49
CAOS Sortino Ratio Rank: 55
CAOS Omega Ratio Rank: 54
CAOS Calmar Ratio Rank: 72
CAOS Martin Ratio Rank: 48

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

PBDC vs. CAOS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Putnam BDC Income ETF (PBDC) and Alpha Architect Tail Risk ETF (CAOS). 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	CAOS	Difference
Sharpe ratio: Return per unit of total volatility	-0.70	1.19	-1.89
Sortino ratio: Return per unit of downside risk	-0.91	1.89	-2.80
Omega ratio: Gain probability vs. loss probability	0.90	1.24	-0.34
Calmar ratio: Return relative to maximum drawdown	-0.75	2.47	-3.22
Martin ratio: Return relative to average drawdown	-1.28	5.45	-6.73

PBDC vs. CAOS - Sharpe Ratio Comparison

The current PBDC Sharpe Ratio is -0.70, which is lower than the CAOS Sharpe Ratio of 1.19. The chart below compares the historical Sharpe Ratios of PBDC and CAOS, 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

PBDC vs. CAOS - Drawdown Comparison

The maximum PBDC drawdown since its inception was -20.47%, which is greater than CAOS's maximum drawdown of -3.89%. Use the drawdown chart below to compare losses from any high point for PBDC and CAOS.

Drawdown Indicators

	PBDC	CAOS	Difference
Max Drawdown Largest peak-to-trough decline	-20.47%	-3.89%	-16.58%
Max Drawdown (1Y) Largest decline over 1 year	-17.71%	-0.76%	-16.95%
Max Drawdown (3Y) Largest decline over 3 years	-20.47%	-3.60%	-16.87%
Current Drawdown Current decline from peak	-16.71%	-1.13%	-15.58%
Average Drawdown Average peak-to-trough decline	-5.16%	-0.92%	-4.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.32%	0.34%	+9.98%

Volatility

PBDC vs. CAOS - Volatility Comparison

Putnam BDC Income ETF (PBDC) has a higher volatility of 4.35% compared to Alpha Architect Tail Risk ETF (CAOS) at 0.51%. This indicates that PBDC's price experiences larger fluctuations and is considered to be riskier than CAOS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PBDC	CAOS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.35%	0.51%	+3.84%
Volatility (6M) Calculated over the trailing 6-month period	15.20%	1.07%	+14.13%
Volatility (1Y) Calculated over the trailing 1-year period	18.87%	1.57%	+17.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.00%	4.18%	+12.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.00%	4.18%	+12.82%

PBDC vs. CAOS - Expense Ratio Comparison

PBDC has a 13.49% expense ratio, which is higher than CAOS's 0.63% expense ratio.

Dividends

PBDC vs. CAOS - Dividend Comparison

PBDC's dividend yield for the trailing twelve months is around 11.58%, while CAOS has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022
CAOS Alpha Architect Tail Risk ETF	0.00%	0.00%	0.00%	0.00%	0.00%
PBDC Putnam BDC Income ETF	11.58%	10.53%	9.29%	9.86%	3.40%

Frequently Asked Questions

Can I hold both PBDC and CAOS in my portfolio?

PBDC and CAOS have a correlation of -0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PBDC or CAOS?

PBDC has higher volatility (4.35%) compared to CAOS (0.51%). In terms of maximum drawdown, PBDC dropped -20.47% vs CAOS's -3.89%.

Which ETF is better, PBDC or CAOS?

On 3-year performance, PBDC leads with 4.71% vs 3.48% for CAOS. On fees, CAOS is cheaper at 0.63% per year. On volatility, CAOS has been the lower-risk option at 0.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PBDC or CAOS?

Over the 3-year period, PBDC has performed better with a 4.71% return vs 3.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PBDC or CAOS?

CAOS is cheaper with a 0.63% expense ratio, compared with 13.49% for PBDC.

Which ETF pays a higher dividend yield, PBDC or CAOS?

PBDC has the higher dividend yield at 11.58%, compared with 0.00% for CAOS.

What is the main difference between PBDC and CAOS?

PBDC is categorized as Financials Equities, while CAOS is Options Trading. They also come from different issuers: Franklin Templeton and Alpha Architect. Their fees differ too: 13.49% for PBDC and 0.63% for CAOS.

Which has better risk-adjusted returns?

CAOS currently has the higher Sharpe Ratio (1.19 vs -0.70), 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.