Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: Both CSWC and TSLX fall intoTier 3: Specialty. This suggests they share a similar risk profile and volatility expectation.
| Metric | CSWC | TSLX |
|---|---|---|
| Total Return (1Y) | 3.72% | 0.00% |
| NAV Change (1Y) | -0.60% | 0.00% |
| Max Drawdown | -24.44% | -23.67% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
CSWC (Capital Southwest) is a sector-specific income fund managed by BDC. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Concentrates on sector-specific opportunities, typically REITs, MLPs, or BDCs with higher baseline yields.
TSLX (Sixth Street Specialty Lending) is a sector-specific income fund managed by BDC. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Concentrates on sector-specific opportunities, typically REITs, MLPs, or BDCs with higher baseline yields.
In the head-to-head battle of CSWC vs TSLX, the choice depends on your specific goal. TSLX wins for Immediate Income with a 8.38% yield. However, CSWC is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
CSWC
Annual Yield: 4.32%
$360/mo
($4,317/year)
Frequency: monthly
TSLX
Annual Yield: 8.38%
$699/mo
($8,383/year)
Frequency: quarterly
Income Gap: TSLX generates $4,065/year more than CSWC on the same $100k investment.
Over 20 years, that's $81,306 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. CSWC has delivered a superior Total Return of 3.72% over the past year.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.