ETF Comparison

ARCC vs OBDC: Which Is the Better Pick in 2026?

A head-to-head comparison of Ares Capital Corporation and Blue Owl Capital Corporation covering yield, cost, risk, and income potential.

Data updated July 4, 2026

Ares Management

ETFs1

Total AUM—

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Ares Management operates a focused ETF lineup of three funds primarily concentrated in closed-end and income-generating strategies. The company is known for managing investment solutions that emphasize fixed income and alternative assets, with popular tickers including ACRE, ARCC, and ARDC that serve investors seeking regular income distributions. Ares leverages its broader asset management expertise to deliver income-focused products tailored to investors with specific yield objectives.

See our curated list of related YouTube videos on ARCC.

See all Ares Management ETFs

Blue Owl Capital

ETFs1

Total AUM—

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Blue Owl Capital operates a focused ETF offering concentrated in the income-generating space, with a single fund family dedicated to yield-focused strategies. The firm manages one ETF, ticker OBDC, which targets investors seeking regular distributions through its income-oriented approach. Blue Owl Capital's limited but specialized ETF lineup reflects a niche positioning within the broader ETF market.

See our curated list of related YouTube videos on OBDC.

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Side-by-side snapshot

	ARCC	OBDC
Full name	Ares Capital Corporation	Blue Owl Capital Corporation
Issuer	Ares Management	Blue Owl Capital
Last Close	$18.73 as of July 4, 2026	$10.82 as of July 4, 2026
Distribution yield	10.29%	13.70%
Distribution Safety Score	93	43
Expense ratio	—	—
AUM	—	—
Distribution frequency	Quarterly	Quarterly
Underlying index	—	—
Objective	—	A specialty finance company that provides direct lending solutions to U.S. middle market companies, investing primarily in senior secured first lien and unitranche loans.
Asset class	Equity	Equity
Inception date	N/A	N/A
Beta	0.618	0.667
Last dividend	$0.4800	$0.3100
Ex-dividend date	06/15/2026	06/30/2026

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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 OBDC over the trailing twelve months, posting a -6.38% total return against -17.41%. The lead holds up over 5 years too: ARCC has compounded at 8.86% a year, against 4.91% for OBDC. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	Since Jul 2019	Volatility	Sharpe	Sortino	Max drawdown
ARCC	-3.46%	-6.38%	9.55%	8.86%	10.53%	17.5%	0.27	0.37	-19.3%
OBDC	-10.82%	-17.41%	3.31%	4.91%	5.57%	19.9%	-0.06	-0.09	-23.9%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jul 2019” measures every fund from July 18, 2019 — 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.

Quick verdict

ARCC (Ares Capital Corporation) and OBDC (Blue Owl Capital Corporation) are both quarterly-pay dividend-paying business development companies (BDCs), but they take different approaches.

OBDC offers the higher yield at 13.70% vs 10.29% for ARCC. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

Deep dive

Yield & income

On a $10,000 investment, ARCC would generate roughly $85.75/month, while OBDC would produce $114.17/month, at current distribution rates. Both pay quarterly distributions.

ARCC yield10.29%

OBDC yield13.70%

Monthly diff on $10K$28.42

Cost & efficiency

Over 10 years on $10,000, ARCC would cost approximately $0 in fees vs $0 for OBDC (simplified, not compounded). Both charge the same expense ratio.

ARCC ER—

OBDC ER—

Strategy & risk

ARCC is a business development company, while OBDC is a business development company. Beta is 0.618 for ARCC and 0.667 for OBDC, indicating ARCC is less volatile relative to the market.

ARCC beta0.618

OBDC beta0.667

Fund details

ARCC is managed by Ares Management (launched —) with — in assets. OBDC is managed by Blue Owl Capital (launched —) with — in assets.

ARCC AUM—

OBDC AUM—

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Frequently asked questions

Is ARCC or OBDC better for dividend income?

It depends on your goals. OBDC 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 OBDC?

ARCC (Ares Capital Corporation) is a business development company, while OBDC (Blue Owl Capital Corporation) is a business development company. They are issued by Ares Management and Blue Owl Capital respectively.

Can I hold both ARCC and OBDC?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, ARCC or OBDC?

ARCC has an expense ratio of — while OBDC charges —. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in ARCC vs OBDC generate?

At current rates, $10,000 in ARCC would generate roughly $85.75 per month ($1,029.00 annually). The same in OBDC would produce about $114.17 per month ($1,370.00 annually).

Which has performed better historically, ARCC or OBDC?

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ARCC vs OBDC — at a glance

Generated June 2026 from current fund data.

Overview

ARCC and OBDC are both business development companies (BDCs) that generate income through lending to middle-market businesses, but they differ materially in lending strategy and portfolio composition. ARCC is the larger, more diversified operator under Ares Management, while OBDC, formerly known as Dyal Capital Partners and now part of Blue Owl Capital, specializes in direct lending through senior secured first lien and unitranche loans with a narrower focus.

How they differ

The biggest difference is lending structure: OBDC concentrates on direct lending via senior secured first lien and unitranche positions, whereas ARCC runs a broader portfolio spanning direct lending, credit partnerships, and equity co-investments across multiple segments. OBDC's tighter strategy drives a materially higher distribution rate of 13.81% versus ARCC's 10.76%, reflecting the higher yields available in direct lending but also greater concentration risk. Both carry similar leverage and quarterly distributions, but OBDC's smaller scale and narrower loan focus make it more exposed to individual credit cycles in the middle market, while ARCC's diversification across lending, equity, and partnership channels provides a wider shock absorber.

Who each is best for

ARCC: Fits investors seeking BDC exposure with broad diversification across lending and equity strategies, lower leverage relative to peers, and a distribution rate in the mid-10% range that aims to balance current income with capital preservation over a longer holding period.

OBDC: Fits investors comfortable with higher yield in exchange for concentrated exposure to the direct-lending segment of the middle market, who value the simplicity of a single, transparent strategy and accept that narrower diversification brings steeper cyclical swings.

Key risks to know

Direct lending concentration: OBDC's exclusive focus on first lien and unitranche loans to mid-market borrowers leaves it more vulnerable to credit deterioration in a single segment; ARCC's multi-channel portfolio spreads that risk across lending, equity, and partnership assets.

NAV erosion at elevated yields: OBDC's 13.81% distribution rate is materially above long-term net investment income for most BDCs; sustained payouts at this level may rely on return of capital, gradually eroding NAV per share.

Rising interest rates and refinancing risk: As BDCs earn a spread between their cost of debt and lending returns, tightening rate cycles can compress that spread; direct lenders like OBDC are also more exposed to borrower refinancing stress when rates stay elevated.

Equity drawdowns in downturn: Both carry beta around 0.65, but OBDC's concentrated strategy could amplify losses if middle-market credit deteriorates faster than the broader BDC market; ARCC's diversification may cushion the decline.

Bottom line

If you prioritize a proven, diversified lending platform with lower distribution yield and multiple income streams, ARCC offers that structure; if you're willing to accept the higher concentration and reinvestment risk that comes with chasing a 13.81% yield, OBDC's direct-lending focus delivers that premium. Past performance does not guarantee future results; both BDCs are exposed to credit cycles and leverage constraints that can compress distributions faster than NAV.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.