ARB vs. ADME

Last updated Jun 4, 2026

ARB (AltShares Merger Arbitrage ETF) and ADME (Aptus Drawdown Managed Equity ETF) are both Hedge Fund funds - ARB tracks the Water Island Merger Arbitrage USD Hedged Index while ADME tracks the Aptus Behavioral Momentum Index. Both are passively managed. Over the past 5 years, ARB returned 3.87%/yr vs 8.23%/yr for ADME. At a 0.36 correlation, their price movements are largely independent. ARB charges 0.87%/yr vs 0.79%/yr for ADME.

Performance

ARB vs. ADME - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AltShares Merger Arbitrage ETF (ARB) and Aptus Drawdown Managed Equity ETF (ADME). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ARB achieves a 1.70% return, which is significantly lower than ADME's 9.81% return.

ARB

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

ADME

• 1D: -0.72%
• 1M: 4.45%
• YTD: 9.81%
• 6M: 8.93%
• 1Y: 20.89%
• 3Y*: 17.40%
• 5Y*: 8.23%
• 10Y*: —

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

ARB vs. ADME - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
ARB AltShares Merger Arbitrage ETF	1.70%	6.05%	4.07%	3.85%	2.67%	3.16%	3.78%
ADME Aptus Drawdown Managed Equity ETF	9.81%	10.28%	22.11%	15.42%	-21.80%	20.24%	18.73%

Correlation

The correlation between ARB and ADME is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.37
Correlation (3Y) Calculated over the trailing 3-year period	0.31
Correlation (5Y) Calculated over the trailing 5-year period	0.36
Correlation (All Time) Calculated using the full available price history since May 8, 2020	0.36

ARB vs. ADME - Sectors Allocation Comparison

Sectors	ARB	ADME
Financial Services	21.4%	11.9%
Healthcare	17.4%	8.4%
Technology	16.3%	35.2%
Industrials	11.9%	8.3%
Communication Services	9.9%	11.3%
Consumer Defensive	6.2%	5.0%
Consumer Cyclical	5.6%	10.2%
Basic Materials	5.3%	1.7%
Utilities	3.1%	2.3%
Real Estate	3.1%	2.0%
Energy	0.6%	3.6%

Return for Risk

ARB vs. ADME — Risk / Return Rank

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

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

ADME

ADME Risk / Return Rank: 62
ADME Sharpe Ratio Rank: 62
ADME Sortino Ratio Rank: 64
ADME Omega Ratio Rank: 60
ADME Calmar Ratio Rank: 56
ADME Martin Ratio Rank: 66

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.

ARB vs. ADME - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AltShares Merger Arbitrage ETF (ARB) and Aptus Drawdown Managed Equity ETF (ADME). 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.

	ARB	ADME	Difference
Sharpe ratio: Return per unit of total volatility	1.70	2.11	-0.41
Sortino ratio: Return per unit of downside risk	2.77	3.01	-0.24
Omega ratio: Gain probability vs. loss probability	1.35	1.37	-0.02
Calmar ratio: Return relative to maximum drawdown	7.17	2.80	+4.37
Martin ratio: Return relative to average drawdown	20.90	12.23	+8.66
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ARB vs. ADME - Sharpe Ratio Comparison

The current ARB Sharpe Ratio is 1.70, which is comparable to the ADME Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of ARB and ADME, 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

	ARB	ADME	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.70	2.11	-0.41
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.88	0.64	+0.24
Sharpe Ratio (All Time) Calculated using the full available price history	0.95	0.63	+0.32

Drawdowns

ARB vs. ADME - Drawdown Comparison

The maximum ARB drawdown since its inception was -5.60%, smaller than the maximum ADME drawdown of -27.49%. Use the drawdown chart below to compare losses from any high point for ARB and ADME.

Drawdown Indicators

	ARB	ADME	Difference
Max Drawdown Largest peak-to-trough decline	-5.60%	-27.49%	+21.89%
Max Drawdown (1Y) Largest decline over 1 year	-0.69%	-7.49%	+6.80%
Max Drawdown (3Y) Largest decline over 3 years	-2.13%	-15.67%	+13.54%
Max Drawdown (5Y) Largest decline over 5 years	-5.60%	-23.43%	+17.83%
Current Drawdown Current decline from peak	-0.49%	-0.72%	+0.23%
Average Drawdown Average peak-to-trough decline	-0.94%	-7.92%	+6.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.24%	1.71%	-1.47%

Volatility

ARB vs. ADME - Volatility Comparison

The current volatility for AltShares Merger Arbitrage ETF (ARB) is 1.28%, while Aptus Drawdown Managed Equity ETF (ADME) has a volatility of 2.99%. This indicates that ARB experiences smaller price fluctuations and is considered to be less risky than ADME based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARB	ADME	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.28%	2.99%	-1.71%
Volatility (6M) Calculated over the trailing 6-month period	2.38%	7.69%	-5.31%
Volatility (1Y) Calculated over the trailing 1-year period	2.89%	9.95%	-7.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.40%	12.87%	-8.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.40%	14.40%	-10.00%

ARB vs. ADME - Expense Ratio Comparison

ARB has a 0.87% expense ratio, which is higher than ADME's 0.79% expense ratio.

Dividends

ARB vs. ADME - Dividend Comparison

ARB's dividend yield for the trailing twelve months is around 0.43%, more than ADME's 0.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
ADME Aptus Drawdown Managed Equity ETF	0.37%	0.38%	0.47%	0.78%	0.73%	0.26%	0.41%	0.70%	0.86%	0.32%	0.69%
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%

Frequently Asked Questions

Can I hold both ARB and ADME in my portfolio?

ARB and ADME have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ARB or ADME?

ADME has higher volatility (2.99%) compared to ARB (1.28%). In terms of maximum drawdown, ARB dropped -5.60% vs ADME's -27.49%.

Which ETF is better, ARB or ADME?

On 5-year performance, ADME leads with 8.23% vs 3.87% for ARB. On fees, ADME is cheaper at 0.79% per year. On volatility, ARB has been the lower-risk option at 1.28%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ARB or ADME?

Over the 5-year period, ADME has performed better with a 8.23% return vs 3.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ARB or ADME?

ADME is cheaper with a 0.79% expense ratio, compared with 0.87% for ARB.

Which ETF pays a higher dividend yield, ARB or ADME?

ARB has the higher dividend yield at 0.43%, compared with 0.37% for ADME.

What is the main difference between ARB and ADME?

ARB tracks Water Island Merger Arbitrage USD Hedged Index, while ADME tracks Aptus Behavioral Momentum Index. They also come from different issuers: Water Island Capital Partners LP and Aptus Capital Advisors. Their fees differ too: 0.87% for ARB and 0.79% for ADME.

Which has better risk-adjusted returns?

ADME currently has the higher Sharpe Ratio (2.11 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.