ARDC vs VOO
ARDC vs VOO
Ares Dynamic Credit Allocation Fund Inc. vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | ARDC | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 3.69% | 0.03% | |
| AUM | $320M | $979.0B | |
| Dividend Yield | 10.05% | 1.09% | |
| Holdings | 316 | 509 | |
| YTD Return | -0.57% | +13.31% | |
| 1Y Return | -3.80% | +24.01% | |
| 3Y Return (annualized) | +9.10% | +21.17% | |
| 5Y Return (annualized) | +4.61% | +13.34% | |
| Volatility (annualized) | 13.5% | 14.1% | |
| Max Drawdown | -57.1% | -34.3% | |
| Fund Family | Ares Public Funds | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 27, 2012 | Sep 7, 2010 |
ARDC vs VOO Performance
Ares Dynamic Credit Allocation Fund Inc. (ARDC) is a ETF from Ares Public Funds and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year ARDC returned -3.80% while VOO returned +24.01%. Year to date, ARDC is down 0.57% versus a gain of 13.31% for VOO.
Over three years, ARDC compounded at +9.10% per year against +21.17% for VOO; over five years the annualized figures are +4.61% and +13.34% respectively. Across the full 14-year window we track, VOO has the edge at +13.55% annualized vs +0.35%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -34.3% for VOO. 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 VOO charges 0.03%. On a $10,000 position that is $369 vs $3 annually, a gap of $366 per year that compounds over a long holding period. On income, ARDC currently yields 10.05% against 1.09% for VOO.
Holdings Overlap
ARDC and VOO share 0 holdings out of 605 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 VOO?
ARDC has an expense ratio of 3.69% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $366 per year of difference.
Which performed better, ARDC or VOO?
Over the past year ARDC returned -3.80% vs +24.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (14 years), ARDC annualized +0.35% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, ARDC or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 13.5% for ARDC. Worst drawdown: ARDC -57.1% vs VOO -34.3%.
Should I hold both ARDC and VOO?
ARDC and VOO 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 VOO?
ARDC and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 605 unique securities.
Which pays a higher dividend, ARDC or VOO?
ARDC yields 10.05% while VOO yields 1.09%, so ARDC currently pays the higher dividend yield.
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