Ares Capital Corporation vs State Street Real Estate Select Sector SPDR ETF — how do they compare? Ares Capital Corporation trades at $18.75 (market cap $13.48B), while State Street Real Estate Select Sector SPDR ETF trades at $44.49. The key difference: Ares Capital Corporation pays a 10.22% dividend while State Street Real Estate Select Sector SPDR ETF pays none, and State Street Real Estate Select Sector SPDR ETF is trading nearer its 52-week high, Ares Capital Corporation nearer its low. Which is the better fit depends on your goals.
| ARCC | XLRE | |
|---|---|---|
Market Cap | $13.48B | — |
Sector | Financials | Sector/Thematic |
52-Week High | $23.25 | $45.36 |
52-Week Low | $17.45 | $40.01 |
Dividend Yield | 10.22% | — |
Signals from Pluang's Aura AI — not financial advice
Ares Capital (ARCC) trades at $18.78, up 2.01% on the day, with a bearish technical signal but strong analyst support. The stock shows a P/E of 11.52 and P/B of 0.96, trading below the consensus price target of $20.58. Recent earnings have missed expectations, with Q2 2026 results pending, while revenue declined to $1.51B in 2025 from $1.7B in 2024. A dividend of $0.48 is scheduled for payment on June 30, 2026, supporting income appeal amid mixed sentiment.
ARCC presents a value opportunity with a high dividend yield and undervaluation relative to analyst targets, but faces headwinds from earnings misses and a bearish technical outlook. Risks include revenue volatility and competitive pressures in the BDC space, though institutional buy ratings suggest confidence in recovery potential. Investors should weigh income stability against growth challenges.
XLRE trades at $44.45, up 0.5% with neutral technical signals and mixed moving averages. The ETF shows resilience amid interest rate volatility, with real estate ETFs outperforming broader markets despite inflation concerns. Recent news highlights XLRE's low 0.08% expense ratio advantage over competitors and steady dividend distributions, though short interest in REITs edged higher in May.
Outlook remains balanced with potential from REIT sector recovery and diversification benefits, but faces headwinds from rising Treasury yields and inflation. The 3.4% dividend yield provides income appeal, though rate sensitivity and economic uncertainty warrant cautious monitoring of fundamental improvements in property markets.
Trailing returns across standard periods
Latest headlines on both assets
Ares Capital Corp is a United States-based closed-ended specialty finance company. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. The company focuses on investing primarily in U.S. middle-market companies with investment opportunities as well as in larger companies. Its portfolio comprises of first lien senior secured loans, second lien senior secured loans, and mezzanine debt (subordinated unsecured loan), which may include equity components that are diversified by industry and sector. The company may invest in preferred and common equity investments to a lesser proportion. Its revenue mainly consists of interest and dividend income received from the investment made.
Read more on ARCC →XLRE tracks the Real Estate Select Sector Index, providing exposure to S&P 500 real estate companies. It focuses on equity REITs across residential, industrial, and healthcare sub-sectors, with top holdings like Welltower, Prologis, and American Tower.
Read more on XLRE →