ADX vs ARCC: two very different income vehicles — one an equity closed‑end fund (ADX), the other a giant private‑credit BDC (ARCC). The short takeaway: ADX = equity exposure + deep discount + 7.3% yield, while ARCC = private credit + 9.6% yield + steadier earnings. They serve different roles in a portfolio.
Below is a structured, side‑by‑side comparison using the latest sourced financial data.
📊 ADX vs ARCC — Key Financial Comparison
| ADX7.33% yield | ARCC9.66% yield | |
| Valuation | ||
| P/E Ratio | 5.34 | 14.88 |
| Market Cap | $3.24B | $14.35B |
| Price vs 52W High | −1.02% | −11.4% |
| Income | ||
| Dividend Yield | 7.33% | 9.66% |
| Dividend Per Share | $1.91 | $1.92 |
| Dividend Type | Equity distributions | Ordinary income (BDC) |
| Portfolio | ||
| Asset Type | US equities (internally managed CEF) | Private credit loans to mid‑market firms |
| Top Holdings | NVDA, AAPL, GOOGL, MSFT | ~$29B loan book across 500+ companies |
| Beta | 0.92 | 0.62 |
| Financial Strength | ||
| Debt/Equity | — | 1.14 |
| Net Asset Value | — | $19.35/share |
| ROE | — | 6.88% |
| Performance | ||
| YTD Return | 11.32% | −1.38% |
| 1‑Year Return | 18.65% | −10.34% |
| 5‑Year Return | 25.29% | −0.84% |
Sources: ADX price, yield, P/E, holdings, performance ARCC price, yield, P/E, NAV, debt/equity, returns MSN Money+1MSN Money. Ares Capital Corpfinance.yahoo.com. Ares Capital Corporation (ARCC) Stock Price, News, Quote & History – Yahoo Finance
🧠 What the comparison actually means
ADX — Adams Diversified Equity Fund
Identity: A 1929‑founded, internally managed US equity closed‑end fund. What stands out:
- Trades at a deep discount to NAV (typical for ADX historically).
- Very low P/E of 5.3, meaning the equity portfolio is priced cheaply.
- 7.3% yield paid through quarterly distributions.
- Heavy exposure to mega‑cap tech (NVDA, AAPL, GOOGL, MSFT).
- No leverage risk like a BDC; instead, equity market risk.
Implication: ADX behaves like a discounted S&P‑tilted equity basket with a high distribution rate. Strong when markets rise; volatile when they fall.
ARCC — Ares Capital Corporation
Identity: The largest publicly traded BDC, lending to mid‑market US companies. What stands out:
- 9.6% yield, one of the highest sustainable yields in the BDC space.
- Earnings are interest‑rate sensitive; higher rates → higher income.
- NAV slipped from $19.94 → $19.35 recently due to unrealized losses.
- Debt/Equity 1.14 — normal for BDCs but still leverage‑heavy.
- 1‑year share price −10%, reflecting credit‑cycle concerns.
Implication: ARCC is a credit‑income machine. It performs best when defaults stay low and rates stay high. It is less volatile than equities but carries credit‑risk and leverage‑risk.
🧩 Which fits which role?
ADX is better for:
- Equity‑income exposure
- Benefiting from a discount to NAV
- Long‑term capital appreciation + distributions
- Tech‑heavy growth tilt
ARCC is better for:
- High, steady cash yield
- Lower volatility than equities
- Private‑credit exposure
- Income‑focused portfolios
⚠️ Risk Notes (important)
- ADX risk: equity drawdowns, tech concentration, discount widening.
- ARCC risk: credit cycle deterioration, rising non‑accruals (currently 2.4% per Yahoo Scout) , NAV erosion, leverage.
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