QQQ vs. ARCC
QQQ (Invesco QQQ ETF) is Nasdaq-100 fund tracking the NASDAQ-100 Index, while ARCC (Ares Capital Corporation) is a stock. Over the past 10 years, QQQ returned 21.79%/yr vs 13.20%/yr for ARCC. At a 0.47 correlation, their price movements are largely independent.
Performance
QQQ vs. ARCC - Performance Comparison
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Returns By Period
In the year-to-date period, QQQ achieves a 17.57% return, which is significantly higher than ARCC's -2.20% return. Over the past 10 years, QQQ has outperformed ARCC with an annualized return of 21.79%, while ARCC has yielded a comparatively lower 13.20% annualized return.
QQQ
- 1D
- 0.59%
- 1M
- 0.22%
- YTD
- 17.57%
- 6M
- 17.85%
- 1Y
- 37.55%
- 3Y*
- 26.43%
- 5Y*
- 16.85%
- 10Y*
- 21.79%
ARCC
- 1D
- 1.00%
- 1M
- 1.90%
- YTD
- -2.20%
- 6M
- -2.87%
- 1Y
- -3.87%
- 3Y*
- 10.27%
- 5Y*
- 9.04%
- 10Y*
- 13.20%
QQQ vs. ARCC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
QQQ Invesco QQQ ETF | 17.57% | 20.77% | 25.58% | 54.86% | -32.58% | 27.42% | 48.62% | 38.96% | -0.13% | 32.66% |
ARCC Ares Capital Corporation | -2.20% | 1.07% | 19.78% | 20.03% | -3.84% | 36.14% | 0.86% | 31.30% | 8.81% | 4.50% |
Correlation
The correlation between QQQ and ARCC is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.37 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.37 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.43 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.39 |
Correlation (All Time) Calculated using the full available price history since Oct 6, 2004 | 0.47 |
The correlation between QQQ and ARCC shifts across timeframes, from 0.37 (3 years) to 0.47 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
QQQ vs. ARCC — Risk / Return Rank
QQQ
ARCC
QQQ vs. ARCC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco QQQ ETF (QQQ) 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.
| QQQ | ARCC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.37 | ||
| Sortino ratioReturn per unit of downside risk | +2.99 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 0.97 | +0.40 |
| Calmar ratioReturn relative to maximum drawdown | 3.01 | -0.26 | +3.27 |
| Martin ratioReturn relative to average drawdown | 11.22 | -0.47 | +11.70 |
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Drawdowns
QQQ vs. ARCC - Drawdown Comparison
The maximum QQQ drawdown since its inception was -82.97%, roughly equal to the maximum ARCC drawdown of -79.36%. Use the drawdown chart below to compare losses from any high point for QQQ and ARCC.
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Drawdown Indicators
| QQQ | ARCC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -82.97% | -79.36% | -3.61% |
Max Drawdown (1Y)Largest decline over 1 year | -11.96% | -19.35% | +7.39% |
Max Drawdown (3Y)Largest decline over 3 years | -22.77% | -19.35% | -3.42% |
Max Drawdown (5Y)Largest decline over 5 years | -35.12% | -21.76% | -13.36% |
Max Drawdown (10Y)Largest decline over 10 years | -35.12% | -56.77% | +21.65% |
Current DrawdownCurrent decline from peak | -3.33% | -10.98% | +7.65% |
Average DrawdownAverage peak-to-trough decline | -32.75% | -9.10% | -23.65% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.20% | 10.68% | -7.48% |
Volatility
QQQ vs. ARCC - Volatility Comparison
Invesco QQQ ETF (QQQ) has a higher volatility of 7.56% compared to Ares Capital Corporation (ARCC) at 3.72%. This indicates that QQQ'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.
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Volatility by Period
| QQQ | ARCC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.56% | 3.72% | +3.84% |
Volatility (6M)Calculated over the trailing 6-month period | 13.81% | 14.83% | -1.02% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.19% | 18.48% | -1.29% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.55% | 19.96% | +2.59% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.38% | 25.58% | -3.20% |
Dividends
QQQ vs. ARCC - Dividend Comparison
QQQ's dividend yield for the trailing twelve months is around 0.39%, less than ARCC's 9.97% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | 7.48% | 9.49% | 8.77% | 9.59% | 10.12% | 7.65% | 9.47% | 9.01% | 9.88% | 9.67% | 9.22% | 11.02% |
QQQ Invesco QQQ ETF | 0.39% | 0.45% | 0.56% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% |
Frequently Asked Questions
QQQ and ARCC have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
QQQ has higher volatility (7.56%) compared to ARCC (3.72%). In terms of maximum drawdown, QQQ dropped -82.97% vs ARCC's -79.36%.
QQQ currently has the higher Sharpe Ratio (2.09 vs -0.27), 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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