WIW vs. ARDC

Last updated Jun 4, 2026

WIW (Western Asset Inflation-Linked Opportunities & Income Fund) is Inflation-Protected Bonds fund, while ARDC (Ares Dynamic Credit Allocation Fund, Inc.) is a stock. Over the past 10 years, WIW returned 4.02%/yr vs 8.26%/yr for ARDC. At a 0.23 correlation, their price movements are largely independent.

Performance

WIW vs. ARDC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Western Asset Inflation-Linked Opportunities & Income Fund (WIW) and Ares Dynamic Credit Allocation Fund, Inc. (ARDC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, WIW achieves a 2.28% return, which is significantly higher than ARDC's -1.78% return. Over the past 10 years, WIW has underperformed ARDC with an annualized return of 4.02%, while ARDC has yielded a comparatively higher 8.26% annualized return.

WIW

• 1D: -0.82%
• 1M: 0.15%
• YTD: 2.28%
• 6M: 0.68%
• 1Y: 8.01%
• 3Y*: 7.45%
• 5Y*: 0.77%
• 10Y*: 4.02%

ARDC

• 1D: -1.19%
• 1M: 0.41%
• YTD: -1.78%
• 6M: -1.97%
• 1Y: -1.89%
• 3Y*: 12.41%
• 5Y*: 4.79%
• 10Y*: 8.26%

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

WIW vs. ARDC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
WIW Western Asset Inflation-Linked Opportunities & Income Fund	2.28%	13.17%	3.83%	5.10%	-25.30%	17.66%	11.46%	18.27%	-7.57%	6.46%
ARDC Ares Dynamic Credit Allocation Fund, Inc.	-1.78%	-3.10%	21.05%	32.35%	-22.21%	23.12%	2.56%	21.26%	-8.80%	17.63%

Correlation

The correlation between WIW and ARDC is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.26
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (5Y) Calculated over the trailing 5-year period	0.28
Correlation (10Y) Calculated over the trailing 10-year period	0.23
Correlation (All Time) Calculated using the full available price history since Nov 29, 2012	0.23

Return for Risk

WIW vs. ARDC — Risk / Return Rank

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

WIW

WIW Risk / Return Rank: 22
WIW Sharpe Ratio Rank: 17
WIW Sortino Ratio Rank: 16
WIW Omega Ratio Rank: 17
WIW Calmar Ratio Rank: 35
WIW Martin Ratio Rank: 24

ARDC

ARDC Risk / Return Rank: 31
ARDC Sharpe Ratio Rank: 32
ARDC Sortino Ratio Rank: 25
ARDC Omega Ratio Rank: 25
ARDC Calmar Ratio Rank: 36
ARDC Martin Ratio Rank: 36

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.

WIW vs. ARDC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Western Asset Inflation-Linked Opportunities & Income Fund (WIW) and Ares Dynamic Credit Allocation Fund, Inc. (ARDC). 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.

	WIW	ARDC	Difference
Sharpe ratio: Return per unit of total volatility	1.16	-0.20	+1.36
Sortino ratio: Return per unit of downside risk	1.69	-0.21	+1.90
Omega ratio: Gain probability vs. loss probability	1.22	0.97	+0.24
Calmar ratio: Return relative to maximum drawdown	2.23	-0.12	+2.35
Martin ratio: Return relative to average drawdown	5.92	-0.26	+6.18
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

WIW vs. ARDC - Sharpe Ratio Comparison

The current WIW Sharpe Ratio is 1.16, which is higher than the ARDC Sharpe Ratio of -0.20. The chart below compares the historical Sharpe Ratios of WIW and ARDC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	WIW	ARDC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.16	-0.20	+1.36
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.08	0.35	-0.27
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.40	0.49	-0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	0.36	-0.04

Drawdowns

WIW vs. ARDC - Drawdown Comparison

The maximum WIW drawdown since its inception was -29.49%, smaller than the maximum ARDC drawdown of -45.40%. Use the drawdown chart below to compare losses from any high point for WIW and ARDC.

Drawdown Indicators

	WIW	ARDC	Difference
Max Drawdown Largest peak-to-trough decline	-29.49%	-45.40%	+15.91%
Max Drawdown (1Y) Largest decline over 1 year	-3.61%	-15.57%	+11.96%
Max Drawdown (3Y) Largest decline over 3 years	-8.65%	-19.78%	+11.13%
Max Drawdown (5Y) Largest decline over 5 years	-29.49%	-26.48%	-3.01%
Max Drawdown (10Y) Largest decline over 10 years	-29.49%	-45.40%	+15.91%
Current Drawdown Current decline from peak	-5.64%	-9.26%	+3.62%
Average Drawdown Average peak-to-trough decline	-7.97%	-6.64%	-1.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.36%	7.36%	-6.00%

Volatility

WIW vs. ARDC - Volatility Comparison

The current volatility for Western Asset Inflation-Linked Opportunities & Income Fund (WIW) is 1.76%, while Ares Dynamic Credit Allocation Fund, Inc. (ARDC) has a volatility of 2.83%. This indicates that WIW experiences smaller price fluctuations and is considered to be less risky than ARDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	WIW	ARDC	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.76%	2.83%	-1.07%
Volatility (6M) Calculated over the trailing 6-month period	4.32%	7.14%	-2.82%
Volatility (1Y) Calculated over the trailing 1-year period	6.93%	9.51%	-2.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.18%	13.80%	-3.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.98%	16.87%	-6.89%

Dividends

WIW vs. ARDC - Dividend Comparison

WIW's dividend yield for the trailing twelve months is around 8.85%, less than ARDC's 10.80% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARDC Ares Dynamic Credit Allocation Fund, Inc.	10.80%	10.19%	9.33%	9.85%	10.31%	7.16%	8.40%	8.40%	9.35%	7.58%	8.45%	10.51%
WIW Western Asset Inflation-Linked Opportunities & Income Fund	8.85%	8.68%	8.78%	10.38%	11.81%	6.93%	3.20%	3.74%	4.26%	3.70%	3.61%	3.91%

Frequently Asked Questions

Can I hold both WIW and ARDC in my portfolio?

WIW and ARDC 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, WIW or ARDC?

ARDC has higher volatility (2.83%) compared to WIW (1.76%). In terms of maximum drawdown, WIW dropped -29.49% vs ARDC's -45.40%.

Which has better risk-adjusted returns?

WIW currently has the higher Sharpe Ratio (1.16 vs -0.20), 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.