ARB vs. HMEZX

Last updated Jun 4, 2026

ARB (AltShares Merger Arbitrage ETF) and HMEZX (NexPoint Merger Arbitrage Fund) are both funds - ARB is a Hedge Fund fund tracking the Water Island Merger Arbitrage USD Hedged Index, while HMEZX is a Event Driven fund managed by Highland Funds. Over the past 5 years, ARB returned 3.87%/yr vs 4.89%/yr for HMEZX. At a 0.33 correlation, their price movements are largely independent. ARB charges 0.87%/yr vs 1.50%/yr for HMEZX.

Performance

ARB vs. HMEZX - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with ARB having a 1.70% return and HMEZX slightly higher at 1.72%.

ARB

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

HMEZX

• 1D: -0.05%
• 1M: 0.25%
• YTD: 1.72%
• 6M: 1.89%
• 1Y: 5.55%
• 3Y*: 6.92%
• 5Y*: 4.89%
• 10Y*: 5.89%

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

ARB vs. HMEZX - 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%
HMEZX NexPoint Merger Arbitrage Fund	1.72%	6.30%	7.42%	4.10%	2.70%	5.37%	7.09%

Correlation

The correlation between ARB and HMEZX is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.32
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.35
Correlation (All Time) Calculated using the full available price history since May 8, 2020	0.33

Return for Risk

ARB vs. HMEZX — 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

HMEZX

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

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. HMEZX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AltShares Merger Arbitrage ETF (ARB) and NexPoint Merger Arbitrage Fund (HMEZX). 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	HMEZX	Difference
Sharpe ratio: Return per unit of total volatility	1.70	4.56	-2.86
Sortino ratio: Return per unit of downside risk	2.77	8.08	-5.32
Omega ratio: Gain probability vs. loss probability	1.35	2.19	-0.85
Calmar ratio: Return relative to maximum drawdown	7.17	10.25	-3.07
Martin ratio: Return relative to average drawdown	20.90	58.26	-37.37
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. HMEZX - Sharpe Ratio Comparison

The current ARB Sharpe Ratio is 1.70, which is lower than the HMEZX Sharpe Ratio of 4.56. The chart below compares the historical Sharpe Ratios of ARB and HMEZX, 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	HMEZX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.70	4.56	-2.86
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.88	2.92	-2.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.56	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.95	1.59	-0.64

Drawdowns

ARB vs. HMEZX - Drawdown Comparison

The maximum ARB drawdown since its inception was -5.60%, smaller than the maximum HMEZX drawdown of -6.86%. Use the drawdown chart below to compare losses from any high point for ARB and HMEZX.

Drawdown Indicators

	ARB	HMEZX	Difference
Max Drawdown Largest peak-to-trough decline	-5.60%	-6.86%	+1.26%
Max Drawdown (1Y) Largest decline over 1 year	-0.69%	-0.55%	-0.14%
Max Drawdown (3Y) Largest decline over 3 years	-2.13%	-1.06%	-1.07%
Max Drawdown (5Y) Largest decline over 5 years	-5.60%	-1.94%	-3.66%
Max Drawdown (10Y) Largest decline over 10 years	—	-6.86%	—
Current Drawdown Current decline from peak	-0.49%	-0.05%	-0.44%
Average Drawdown Average peak-to-trough decline	-0.94%	-0.37%	-0.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.24%	0.10%	+0.14%

Volatility

ARB vs. HMEZX - Volatility Comparison

AltShares Merger Arbitrage ETF (ARB) has a higher volatility of 1.28% compared to NexPoint Merger Arbitrage Fund (HMEZX) at 0.24%. This indicates that ARB's price experiences larger fluctuations and is considered to be riskier than HMEZX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARB	HMEZX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.28%	0.24%	+1.04%
Volatility (6M) Calculated over the trailing 6-month period	2.38%	0.86%	+1.52%
Volatility (1Y) Calculated over the trailing 1-year period	2.89%	1.23%	+1.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.40%	1.68%	+2.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.40%	3.80%	+0.60%

ARB vs. HMEZX - Expense Ratio Comparison

ARB has a 0.87% expense ratio, which is lower than HMEZX's 1.50% expense ratio.

Dividends

ARB vs. HMEZX - Dividend Comparison

ARB's dividend yield for the trailing twelve months is around 0.43%, less than HMEZX's 5.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
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%
HMEZX NexPoint Merger Arbitrage Fund	5.02%	5.04%	6.36%	5.07%	5.11%	3.63%	5.83%	0.33%	19.16%	6.88%	0.02%

Frequently Asked Questions

Can I hold both ARB and HMEZX in my portfolio?

ARB and HMEZX have a correlation of 0.32, 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 HMEZX?

ARB has higher volatility (1.28%) compared to HMEZX (0.24%). In terms of maximum drawdown, ARB dropped -5.60% vs HMEZX's -6.86%.

Which has better risk-adjusted returns?

HMEZX currently has the higher Sharpe Ratio (4.56 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.