ARDC vs VXUS
ARDC vs VXUS
Ares Dynamic Credit Allocation Fund Inc. vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.
Side-by-Side Comparison
| Metric | ARDC | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 3.69% | 0.05% | |
| AUM | $320M | $156.5B | |
| Dividend Yield | 10.05% | 2.60% | |
| Holdings | 316 | 8,747 | |
| YTD Return | -0.57% | +13.65% | |
| 1Y Return | -3.80% | +28.53% | |
| 3Y Return (annualized) | +9.10% | +18.64% | |
| 5Y Return (annualized) | +4.61% | +9.00% | |
| Volatility (annualized) | 13.5% | 15.1% | |
| Max Drawdown | -57.1% | -39.9% | |
| Fund Family | Ares Public Funds | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 27, 2012 | Jan 26, 2011 |
ARDC vs VXUS Performance
Ares Dynamic Credit Allocation Fund Inc. (ARDC) is a ETF from Ares Public Funds and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year ARDC returned -3.80% while VXUS returned +28.53%. Year to date, ARDC is down 0.57% versus a gain of 13.65% for VXUS.
Over three years, ARDC compounded at +9.10% per year against +18.64% for VXUS; over five years the annualized figures are +4.61% and +9.00% respectively. Across the full 14-year window we track, VXUS has the edge at +4.81% annualized vs +0.35%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 VXUS charges 0.05%. On a $10,000 position that is $369 vs $5 annually, a gap of $364 per year that compounds over a long holding period. On income, ARDC currently yields 10.05% against 2.60% for VXUS.
Holdings Overlap
ARDC and VXUS share 0 holdings out of 7960 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 VXUS?
ARDC has an expense ratio of 3.69% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $364 per year of difference.
Which performed better, ARDC or VXUS?
Over the past year ARDC returned -3.80% vs +28.53% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (14 years), ARDC annualized +0.35% vs +4.81% for VXUS. Past performance does not guarantee future results.
Which is riskier, ARDC or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 13.5% for ARDC. Worst drawdown: ARDC -57.1% vs VXUS -39.9%.
Should I hold both ARDC and VXUS?
ARDC and VXUS 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 VXUS?
ARDC and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7960 unique securities.
Which pays a higher dividend, ARDC or VXUS?
ARDC yields 10.05% while VXUS yields 2.60%, so ARDC currently pays the higher dividend yield.
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