ADAIX vs. ARB

Last updated Jun 4, 2026

ADAIX (AQR Diversified Arbitrage Fund Class I) and ARB (AltShares Merger Arbitrage ETF) are both funds - ADAIX is a Multistrategy fund actively managed by AQR Funds, while ARB is a Hedge Fund fund tracking the Water Island Merger Arbitrage USD Hedged Index. ADAIX is actively managed, while ARB is passively managed. Over the past 5 years, ADAIX returned 2.99%/yr vs 3.87%/yr for ARB. At a 0.36 correlation, their price movements are largely independent. ADAIX charges 1.38%/yr vs 0.87%/yr for ARB.

Performance

ADAIX vs. ARB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AQR Diversified Arbitrage Fund Class I (ADAIX) and AltShares Merger Arbitrage ETF (ARB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ADAIX achieves a 2.96% return, which is significantly higher than ARB's 1.70% return.

ADAIX

• 1D: -0.08%
• 1M: 0.69%
• YTD: 2.96%
• 6M: 3.46%
• 1Y: 6.74%
• 3Y*: 6.25%
• 5Y*: 2.99%
• 10Y*: 6.85%

ARB

• 1D: 0.03%
• 1M: 0.35%
• YTD: 1.70%
• 6M: 2.28%
• 1Y: 4.90%
• 3Y*: 6.40%
• 5Y*: 3.87%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

ADAIX vs. ARB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
ADAIX AQR Diversified Arbitrage Fund Class I	2.96%	8.03%	3.19%	4.51%	-3.30%	6.27%	29.56%
ARB AltShares Merger Arbitrage ETF	1.70%	6.05%	4.07%	3.85%	2.67%	3.16%	3.78%

Correlation

The correlation between ADAIX and ARB is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.26
Correlation (5Y) Calculated over the trailing 5-year period	0.42
Correlation (All Time) Calculated using the full available price history since May 8, 2020	0.36

Over the past year, the correlation between ADAIX and ARB has dropped to 0.13 - well below their long-term average of 0.36, suggesting their price drivers have been diverging.

Return for Risk

ADAIX vs. ARB — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ADAIX

ADAIX Risk / Return Rank: 99
ADAIX Sharpe Ratio Rank: 99
ADAIX Sortino Ratio Rank: 99
ADAIX Omega Ratio Rank: 98
ADAIX Calmar Ratio Rank: 99
ADAIX Martin Ratio Rank: 99

ARB

ARB Risk / Return Rank: 69
ARB Sharpe Ratio Rank: 48
ARB Sortino Ratio Rank: 57
ARB Omega Ratio Rank: 56
ARB Calmar Ratio Rank: 94
ARB Martin Ratio Rank: 90

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ADAIX vs. ARB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AQR Diversified Arbitrage Fund Class I (ADAIX) and AltShares Merger Arbitrage ETF (ARB). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ADAIX	ARB	Difference
Sharpe ratio: Return per unit of total volatility	4.84	1.70	+3.14
Sortino ratio: Return per unit of downside risk	8.18	2.77	+5.41
Omega ratio: Gain probability vs. loss probability	2.26	1.35	+0.91
Calmar ratio: Return relative to maximum drawdown	14.61	7.17	+7.44
Martin ratio: Return relative to average drawdown	44.38	20.90	+23.49
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ADAIX vs. ARB - Sharpe Ratio Comparison

The current ADAIX Sharpe Ratio is 4.84, which is higher than the ARB Sharpe Ratio of 1.70. The chart below compares the historical Sharpe Ratios of ADAIX and ARB, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ADAIX	ARB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.84	1.70	+3.14
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.15	0.88	+0.26
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.59	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.21	0.95	+0.26

Drawdowns

ADAIX vs. ARB - Drawdown Comparison

The maximum ADAIX drawdown since its inception was -14.75%, which is greater than ARB's maximum drawdown of -5.60%. Use the drawdown chart below to compare losses from any high point for ADAIX and ARB.

Drawdown Indicators

	ADAIX	ARB	Difference
Max Drawdown Largest peak-to-trough decline	-14.75%	-5.60%	-9.15%
Max Drawdown (1Y) Largest decline over 1 year	-0.46%	-0.69%	+0.23%
Max Drawdown (3Y) Largest decline over 3 years	-1.78%	-2.13%	+0.35%
Max Drawdown (5Y) Largest decline over 5 years	-7.40%	-5.60%	-1.80%
Max Drawdown (10Y) Largest decline over 10 years	-14.75%	—	—
Current Drawdown Current decline from peak	-0.15%	-0.49%	+0.34%
Average Drawdown Average peak-to-trough decline	-2.82%	-0.94%	-1.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.15%	0.24%	-0.09%

Volatility

ADAIX vs. ARB - Volatility Comparison

The current volatility for AQR Diversified Arbitrage Fund Class I (ADAIX) is 0.37%, while AltShares Merger Arbitrage ETF (ARB) has a volatility of 1.28%. This indicates that ADAIX experiences smaller price fluctuations and is considered to be less risky than ARB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ADAIX	ARB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.37%	1.28%	-0.91%
Volatility (6M) Calculated over the trailing 6-month period	1.06%	2.38%	-1.32%
Volatility (1Y) Calculated over the trailing 1-year period	1.40%	2.89%	-1.49%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.62%	4.40%	-1.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.32%	4.40%	-0.08%

ADAIX vs. ARB - Expense Ratio Comparison

ADAIX has a 1.38% expense ratio, which is higher than ARB's 0.87% expense ratio.

Dividends

ADAIX vs. ARB - Dividend Comparison

ADAIX's dividend yield for the trailing twelve months is around 2.06%, more than ARB's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ADAIX AQR Diversified Arbitrage Fund Class I	2.06%	2.12%	1.23%	2.74%	0.10%	0.65%	1.60%	2.11%	6.53%	7.17%	7.18%	4.93%
ARB AltShares Merger Arbitrage ETF	0.43%	0.43%	1.12%	0.00%	4.18%	0.00%	2.87%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ADAIX and ARB in my portfolio?

ADAIX and ARB have a correlation of 0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ADAIX or ARB?

ARB has higher volatility (1.28%) compared to ADAIX (0.37%). In terms of maximum drawdown, ADAIX dropped -14.75% vs ARB's -5.60%.

Which has better risk-adjusted returns?

ADAIX currently has the higher Sharpe Ratio (4.84 vs 1.70), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.