BDC Comparison
ARCC vs BXSL: Which Is the Better Pick in 2026?
A head-to-head comparison of Ares Capital Corporation and Blackstone Secured Lending Fund covering yield, cost, risk, and income potential.
Data updated August 19, 2026
Best for
- ARCCInvestors who want private-credit income through a business development company.
- BXSLInvestors who want higher current income (12.72% vs 9.78% for ARCC).
Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
ARCC has outpaced BXSL over the trailing twelve months, posting a -2.63% total return against -7.15%. The lead holds up over 5 years too: ARCC has compounded at 9.74% a year, against 8.54% for BXSL. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD | 1Y | 3Y | 5Y | Since Oct 2021 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|---|---|
| ARCC | 2.06% | -2.63% | 10.83% | 9.74% | 7.81% | 17.8% | 0.33 | 0.46 | -19.3% |
| BXSL | -1.43% | -7.15% | 7.70% | 8.54% | 8.54% | 19.2% | 0.15 | 0.21 | -24.2% |
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 19, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Oct 2021” measures every fund from October 28, 2021 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.
Side-by-side snapshot
| Metric | ARCC | BXSL |
|---|---|---|
| Full name | Ares Capital Corporation | Blackstone Secured Lending Fund |
| Issuer | Ares Management | Blackstone |
| Last Close | $19.67 as of August 19, 2026 | $24.35 as of August 19, 2026 |
| Distribution yield | 9.78% | 12.72% |
| Distribution Safety Score™ | 94 | 94 |
| Expense ratio | — | — |
| AUM | — | — |
| Distribution frequency | Quarterly | Quarterly |
| Underlying index | — | — |
| Objective | — | — |
| Asset class | Equity | Equity |
| Inception date | N/A | N/A |
| Beta | 0.62 | 0.422 |
| Last dividend | $0.4800 | $0.7700 |
| Ex-dividend date | 09/15/2026 | 09/30/2026 |
Bottom lineChoose ARCC if you want private-credit income through a business development company. Choose BXSL if you want higher current income (12.72% vs 9.78% for ARCC).
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Quick verdict
ARCC (Ares Capital Corporation) and BXSL (Blackstone Secured Lending Fund) are both quarterly-pay dividend-paying business development companies (BDCs), but they take different approaches.
BXSL offers the higher yield at 12.72% vs 9.78% for ARCC. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
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Deep dive
Yield & income
On a $10,000 investment, ARCC would generate roughly $81.50/month, while BXSL would produce $106.00/month, at current distribution rates. Both pay quarterly distributions.
Strategy & risk
ARCC is a business development company built around BDC exposure, while BXSL is a business development company built around BDC exposure. Beta is 0.62 for ARCC and 0.422 for BXSL, making BXSL the less volatile of the two by this measure.
Security details
ARCC (Ares Capital Corporation) is a business development company. BXSL (Blackstone Secured Lending Fund) is a business development company.
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Frequently asked questions
What is the current distribution yield for ARCC and BXSL?
ARCC currently distributes 9.78% and BXSL 12.72%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.
Is ARCC or BXSL better for dividend income?
It depends on your goals. BXSL currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
What is the difference between ARCC and BXSL?
ARCC (Ares Capital Corporation) is a business development company built around BDC exposure, while BXSL (Blackstone Secured Lending Fund) is a business development company built around BDC exposure. They are issued by Ares Management and Blackstone respectively.
Can I hold both ARCC and BXSL?
Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.
Is ARCC or BXSL safer?
By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: ARCC scores 94, BXSL scores 94. Neither has a clear safety edge on that measure. BXSL has also shown lower price volatility (beta 0.42 vs 0.62 for ARCC). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.
How much income does $10,000 in ARCC vs BXSL generate?
At current rates, $10,000 in ARCC would generate roughly $81.50 per month ($978.00 annually). The same in BXSL would produce about $106.00 per month ($1,272.00 annually).
Which has performed better historically, ARCC or BXSL?
ARCC has outpaced BXSL over the trailing twelve months, posting a -2.63% total return against -7.15%. The lead holds up over 5 years too: ARCC has compounded at 9.74% a year, against 8.54% for BXSL. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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ARCC vs BXSL — at a glance
Generated August 16, 2026.
Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.
Overview
Both ARCC and BXSL are business development companies that lend to middle-market businesses, but they target different borrower profiles and risk tiers. ARCC (Ares Capital) is the larger, more diversified BDC with a focus on leveraged buyout financing and unitranche debt across a broad portfolio. BXSL (Blackstone Secured Lending) specializes in secured first-lien and second-lien loans to lower-middle-market companies, positioning itself as a more conservative credit strategy within the BDC space.
How they differ
The largest difference is credit positioning: BXSL targets senior secured loans with collateral backing, while ARCC takes a broader mix of debt and equity stakes in middle-market sponsors. BXSL yields 12.62% versus ARCC's 9.66%—a 296 basis-point spread that reflects BXSL's concentration in below-investment-grade credits and layered debt structures. ARCC's beta of 0.62 is notably higher than BXSL's 0.42, suggesting ARCC's equity stakes and broader exposure to sponsor valuations carry more systematic risk. Both distribute quarterly, but BXSL's portfolio is skewed toward first-lien and second-lien secured positions, which typically offer lower recovery rates in a downturn despite senior position in the capital stack.
Who each is best for
ARCC: Fits investors seeking exposure to leveraged buyout financing with modest volatility relative to broader markets, comfortable holding a diversified portfolio of debt and equity stakes across numerous portfolio companies.
BXSL: Fits investors prioritizing current income from secured senior loans and willing to accept concentration in below-investment-grade credits and potential NAV pressure if covenant violations or refinancing stress emerge.
Key risks to know
- Credit cyclicality risk. Both BDCs hold loans to lower-rated borrowers; in a recession or rapid rate environment, covenant breaches and refinancing stress could force writedowns. BXSL's emphasis on layered (first and second-lien) structures amplifies exposure to junior-tranche losses if sponsors exhaust liquidity.
- NAV erosion from yield distribution. BXSL's 12.62% distribution rate is materially above typical middle-market loan coupons (7–9%); sustained distributions at this level may require return-of-capital components or portfolio sales at unfavorable prices, slowly eroding NAV.
- Interest-rate and spread environment. Both hold floating-rate loans, so margin compression if spreads tighten could reduce portfolio yields and force distribution cuts. BXSL's secured-loan focus means portfolio turnover may accelerate if borrowers refinance into lower-cost capital.
- Equity-risk concentration. ARCC holds meaningful equity stakes alongside its debt positions; if sponsor valuations contract sharply, equity value erodes faster than debt, pressuring overall NAV and distributions.
Bottom line
ARCC offers lower yield but broader diversification and lower systematic volatility; BXSL delivers higher current income from a tighter, more secured strategy but faces greater concentration risk in below-investment-grade credits and NAV erosion risk at current distribution levels. If you prioritize stability and moderate income, ARCC's profile may fit better; if you're chasing yield and comfortable with senior-secured credit risk, BXSL's higher rate is the tradeoff. Neither compensates for underlying credit or refinancing risk through yield alone—past performance does not guarantee future distributions.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
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