Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: Both MAIN and O fall intoTier 3: Specialty. This suggests they share a similar risk profile and volatility expectation.
| Metric | MAIN | O |
|---|---|---|
| Total Return (1Y) | 10.87% | 13.65% |
| NAV Change (1Y) | 5.23% | 8.35% |
| Max Drawdown | -27.23% | -15.41% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
MAIN (Main Street Capital) 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.
O (Realty Income) is a sector-specific income fund managed by REIT. 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 MAIN vs O, the choice depends on your specific goal. MAIN wins for Immediate Income with a 5.64% yield. However, O 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:
MAIN
Annual Yield: 5.64%
$470/mo
($5,643/year)
Frequency: monthly
O
Annual Yield: 5.30%
$441/mo
($5,298/year)
Frequency: monthly
Income Gap: MAIN generates $345/year more than O on the same $100k investment.
Over 20 years, that's $6,901 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. O has delivered a superior Total Return of 13.65% over the past year.
What is Max Drawdown? Max drawdown measures the largest peak-to-trough decline in portfolio value during a specific period. Unlike NAV change (which only looks at start vs. end), max drawdown captures the worst moment of pain an investor experienced.
Real-World Scenario: $100,000 Investment
O (More Resilient)
Max Drawdown: -15.41%
-$15,410
Worst unrealized loss
MAIN (More Volatile)
Max Drawdown: -27.23%
-$27,230
Worst unrealized loss
Protection Value: O saved investors $11,820 in drawdown severity on a $100k position.
Why This Matters More Than Total Return: During bear markets or corrections, investors with lower max drawdown are:
⚖️ Capital Preservation Winner: O demonstrated superior downside protection, making it the better choice for retirees who cannot afford steep temporary losses.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.