ARDC vs SPY
ARDC vs SPY
Ares Dynamic Credit Allocation Fund Inc. vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | ARDC | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 3.69% | 0.09% | |
| AUM | $320M | $789.1B | |
| Dividend Yield | 10.05% | 1.01% | |
| Holdings | 316 | 505 | |
| YTD Return | -0.57% | +13.28% | |
| 1Y Return | -3.80% | +23.94% | |
| 3Y Return (annualized) | +9.10% | +21.07% | |
| 5Y Return (annualized) | +4.61% | +13.27% | |
| Volatility (annualized) | 13.5% | 15.3% | |
| Max Drawdown | -57.1% | -56.5% | |
| Fund Family | Ares Public Funds | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 27, 2012 | Jan 22, 1993 |
ARDC vs SPY Performance
Ares Dynamic Credit Allocation Fund Inc. (ARDC) is a ETF from Ares Public Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year ARDC returned -3.80% while SPY returned +23.94%. Year to date, ARDC is down 0.57% versus a gain of 13.28% for SPY.
Over three years, ARDC compounded at +9.10% per year against +21.07% for SPY; over five years the annualized figures are +4.61% and +13.27% respectively. Across the full 14-year window we track, SPY has the edge at +8.84% annualized vs +0.35%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 13.5% for ARDC. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -57.1% for ARDC and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ARDC charges 3.69% per year while SPY charges 0.09%. On a $10,000 position that is $369 vs $9 annually, a gap of $360 per year that compounds over a long holding period. On income, ARDC currently yields 10.05% against 1.01% for SPY.
Holdings Overlap
ARDC and SPY share 0 holdings out of 603 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ARDC or SPY?
ARDC has an expense ratio of 3.69% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $360 per year of difference.
Which performed better, ARDC or SPY?
Over the past year ARDC returned -3.80% vs +23.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (14 years), ARDC annualized +0.35% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, ARDC or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.5% for ARDC. Worst drawdown: ARDC -57.1% vs SPY -56.5%.
Should I hold both ARDC and SPY?
ARDC and SPY have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ARDC and SPY?
ARDC and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 603 unique securities.
Which pays a higher dividend, ARDC or SPY?
ARDC yields 10.05% while SPY yields 1.01%, so ARDC currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.