PDX vs. ARCC

Last updated Jun 23, 2026

PDX (PIMCO Dynamic Income Strategy Fund) is Tactical Allocation fund actively managed by PIMCO, while ARCC (Ares Capital Corporation) is a stock. Over the past 5 years, PDX returned 21.66%/yr vs 8.23%/yr for ARCC. At a 0.39 correlation, their price movements are largely independent.

Performance

PDX vs. ARCC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO Dynamic Income Strategy Fund (PDX) 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, PDX achieves a 15.17% return, which is significantly higher than ARCC's -7.09% return.

PDX

• 1D: 0.10%
• 1M: -3.76%
• YTD: 15.17%
• 6M: 16.19%
• 1Y: 4.63%
• 3Y*: 25.27%
• 5Y*: 21.66%
• 10Y*: —

ARCC

• 1D: -1.05%
• 1M: -1.58%
• YTD: -7.09%
• 6M: -5.60%
• 1Y: -8.51%
• 3Y*: 9.49%
• 5Y*: 8.23%
• 10Y*: 12.43%

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

PDX vs. ARCC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
PDX PIMCO Dynamic Income Strategy Fund	15.17%	-10.59%	36.99%	44.51%	23.02%	68.79%	-44.20%	-9.89%
ARCC Ares Capital Corporation	-7.09%	1.07%	19.78%	20.03%	-3.84%	36.14%	0.86%	27.21%

Correlation

The correlation between PDX and ARCC is 0.15, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.15
Correlation (3Y) Calculated over the trailing 3-year period	0.28
Correlation (5Y) Calculated over the trailing 5-year period	0.39
Correlation (All Time) Calculated using the full available price history since Jan 30, 2019	0.39

Over the past year, the correlation between PDX and ARCC has dropped to 0.15 - well below their long-term average of 0.39, suggesting their price drivers have been diverging.

Return for Risk

PDX vs. ARCC — Risk / Return Rank

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

PDX

PDX Risk / Return Rank: 5
PDX Sharpe Ratio Rank: 5
PDX Sortino Ratio Rank: 5
PDX Omega Ratio Rank: 5
PDX Calmar Ratio Rank: 4
PDX Martin Ratio Rank: 4

ARCC

ARCC Risk / Return Rank: 23
ARCC Sharpe Ratio Rank: 22
ARCC Sortino Ratio Rank: 19
ARCC Omega Ratio Rank: 20
ARCC Calmar Ratio Rank: 27
ARCC Martin Ratio Rank: 27

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.

PDX vs. ARCC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO Dynamic Income Strategy Fund (PDX) 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.

	PDX	ARCC	Difference
Sharpe ratio: Return per unit of total volatility	0.33	-0.46	+0.78
Sortino ratio: Return per unit of downside risk	0.56	-0.52	+1.08
Omega ratio: Gain probability vs. loss probability	1.07	0.94	+0.13
Calmar ratio: Return relative to maximum drawdown	0.30	-0.44	+0.74
Martin ratio: Return relative to average drawdown	0.67	-0.79	+1.46

PDX vs. ARCC - Sharpe Ratio Comparison

The current PDX Sharpe Ratio is 0.33, which is higher than the ARCC Sharpe Ratio of -0.46. The chart below compares the historical Sharpe Ratios of PDX 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.

Drawdowns

PDX vs. ARCC - Drawdown Comparison

The maximum PDX drawdown since its inception was -80.63%, roughly equal to the maximum ARCC drawdown of -79.36%. Use the drawdown chart below to compare losses from any high point for PDX and ARCC.

Drawdown Indicators

	PDX	ARCC	Difference
Max Drawdown Largest peak-to-trough decline	-80.63%	-79.36%	-1.27%
Max Drawdown (1Y) Largest decline over 1 year	-15.65%	-19.35%	+3.70%
Max Drawdown (3Y) Largest decline over 3 years	-37.24%	-19.35%	-17.89%
Max Drawdown (5Y) Largest decline over 5 years	-37.24%	-21.76%	-15.48%
Max Drawdown (10Y) Largest decline over 10 years	—	-56.77%	—
Current Drawdown Current decline from peak	-16.35%	-15.44%	-0.91%
Average Drawdown Average peak-to-trough decline	-18.81%	-9.11%	-9.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.89%	10.85%	-3.96%

Volatility

PDX vs. ARCC - Volatility Comparison

The current volatility for PIMCO Dynamic Income Strategy Fund (PDX) is 2.06%, while Ares Capital Corporation (ARCC) has a volatility of 4.64%. This indicates that PDX 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

	PDX	ARCC	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.06%	4.64%	-2.58%
Volatility (6M) Calculated over the trailing 6-month period	10.13%	15.11%	-4.98%
Volatility (1Y) Calculated over the trailing 1-year period	14.24%	18.68%	-4.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.50%	19.95%	+5.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	36.36%	25.60%	+10.76%

Dividends

PDX vs. ARCC - Dividend Comparison

PDX's dividend yield for the trailing twelve months is around 21.98%, more than ARCC's 10.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARCC Ares Capital Corporation	10.76%	9.49%	8.77%	9.59%	10.12%	7.65%	9.47%	9.01%	9.88%	9.67%	9.22%	11.02%
PDX PIMCO Dynamic Income Strategy Fund	21.98%	24.34%	6.31%	4.30%	5.89%	5.28%	14.11%	9.58%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PDX and ARCC in my portfolio?

PDX and ARCC have a correlation of 0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PDX or ARCC?

ARCC has higher volatility (4.64%) compared to PDX (2.06%). In terms of maximum drawdown, PDX dropped -80.63% vs ARCC's -79.36%.

Which has better risk-adjusted returns?

PDX currently has the higher Sharpe Ratio (0.33 vs -0.46), 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.