ARDC vs VTI
ARDC vs VTI
Ares Dynamic Credit Allocation Fund Inc. vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | ARDC | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 3.69% | 0.03% | |
| AUM | $320M | $663.5B | |
| Dividend Yield | 10.05% | 1.07% | |
| Holdings | 316 | 3,543 | |
| YTD Return | -0.57% | +13.57% | |
| 1Y Return | -3.80% | +24.23% | |
| 3Y Return (annualized) | +9.10% | +20.73% | |
| 5Y Return (annualized) | +4.61% | +12.24% | |
| Volatility (annualized) | 13.5% | 15.3% | |
| Max Drawdown | -57.1% | -56.6% | |
| Fund Family | Ares Public Funds | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 27, 2012 | May 24, 2001 |
ARDC vs VTI Performance
Ares Dynamic Credit Allocation Fund Inc. (ARDC) is a ETF from Ares Public Funds and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year ARDC returned -3.80% while VTI returned +24.23%. Year to date, ARDC is down 0.57% versus a gain of 13.57% for VTI.
Over three years, ARDC compounded at +9.10% per year against +20.73% for VTI; over five years the annualized figures are +4.61% and +12.24% respectively. Across the full 14-year window we track, VTI has the edge at +8.12% annualized vs +0.35%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI 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 -56.6% for VTI. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ARDC charges 3.69% per year while VTI 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 1.07% for VTI.
Holdings Overlap
ARDC and VTI share 0 holdings out of 2883 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 VTI?
ARDC has an expense ratio of 3.69% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $366 per year of difference.
Which performed better, ARDC or VTI?
Over the past year ARDC returned -3.80% vs +24.23% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (14 years), ARDC annualized +0.35% vs +8.12% for VTI. Past performance does not guarantee future results.
Which is riskier, ARDC or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 13.5% for ARDC. Worst drawdown: ARDC -57.1% vs VTI -56.6%.
Should I hold both ARDC and VTI?
ARDC and VTI have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ARDC and VTI?
ARDC and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2883 unique securities.
Which pays a higher dividend, ARDC or VTI?
ARDC yields 10.05% while VTI yields 1.07%, so ARDC currently pays the higher dividend yield.
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