ARB vs. MNA

Last updated Jun 24, 2026

ARB (AltShares Merger Arbitrage ETF) and MNA (IQ Merger Arbitrage ETF) are both Hedge Fund funds - ARB tracks the Water Island Merger Arbitrage USD Hedged Index while MNA tracks the IQ Merger Arbitrage Index. Both are passively managed. Over the past 5 years, ARB returned 4.01%/yr vs 2.05%/yr for MNA. At a 0.45 correlation, their price movements are largely independent. ARB charges 0.87%/yr vs 0.77%/yr for MNA.

Performance

ARB vs. MNA - Performance Comparison

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

Returns By Period

In the year-to-date period, ARB achieves a 2.12% return, which is significantly higher than MNA's 1.84% return.

ARB

• 1D: 0.15%
• 1M: 0.40%
• YTD: 2.12%
• 6M: 2.35%
• 1Y: 4.94%
• 3Y*: 6.14%
• 5Y*: 4.01%
• 10Y*: —

MNA

• 1D: 0.10%
• 1M: -0.06%
• YTD: 1.84%
• 6M: 1.56%
• 1Y: 4.44%
• 3Y*: 5.89%
• 5Y*: 2.05%
• 10Y*: 2.92%

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

ARB vs. MNA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
ARB AltShares Merger Arbitrage ETF	2.12%	6.05%	4.07%	3.85%	2.67%	3.16%	3.77%
MNA IQ Merger Arbitrage ETF	1.84%	8.59%	4.93%	0.18%	-1.61%	-3.24%	8.09%

Correlation

The correlation between ARB and MNA is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.39
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (All Time) Calculated using the full available price history since May 7, 2020	0.45

Return for Risk

ARB vs. MNA — Risk / Return Rank

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

ARB

ARB Risk / Return Rank: 67
ARB Sharpe Ratio Rank: 49
ARB Sortino Ratio Rank: 57
ARB Omega Ratio Rank: 55
ARB Calmar Ratio Rank: 86
ARB Martin Ratio Rank: 87

MNA

MNA Risk / Return Rank: 39
MNA Sharpe Ratio Rank: 27
MNA Sortino Ratio Rank: 26
MNA Omega Ratio Rank: 26
MNA Calmar Ratio Rank: 68
MNA Martin Ratio Rank: 49

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. MNA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AltShares Merger Arbitrage ETF (ARB) and IQ Merger Arbitrage ETF (MNA). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ARB	MNA	Difference
Sharpe ratio: Return per unit of total volatility	1.61	0.94	+0.67
Sortino ratio: Return per unit of downside risk	2.54	1.39	+1.15
Omega ratio: Gain probability vs. loss probability	1.32	1.17	+0.15
Calmar ratio: Return relative to maximum drawdown	4.62	3.19	+1.43
Martin ratio: Return relative to average drawdown	17.70	7.78	+9.91

ARB vs. MNA - Sharpe Ratio Comparison

The current ARB Sharpe Ratio is 1.61, which is higher than the MNA Sharpe Ratio of 0.94. The chart below compares the historical Sharpe Ratios of ARB and MNA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ARB vs. MNA - Drawdown Comparison

The maximum ARB drawdown since its inception was -5.60%, smaller than the maximum MNA drawdown of -16.68%. Use the drawdown chart below to compare losses from any high point for ARB and MNA.

Drawdown Indicators

	ARB	MNA	Difference
Max Drawdown Largest peak-to-trough decline	-5.60%	-16.68%	+11.08%
Max Drawdown (1Y) Largest decline over 1 year	-1.07%	-1.40%	+0.33%
Max Drawdown (3Y) Largest decline over 3 years	-2.13%	-3.01%	+0.88%
Max Drawdown (5Y) Largest decline over 5 years	-5.60%	-10.24%	+4.64%
Max Drawdown (10Y) Largest decline over 10 years	—	-16.68%	—
Current Drawdown Current decline from peak	-0.38%	-0.50%	+0.12%
Average Drawdown Average peak-to-trough decline	-0.94%	-2.83%	+1.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.28%	0.57%	-0.29%

Volatility

ARB vs. MNA - Volatility Comparison

The current volatility for AltShares Merger Arbitrage ETF (ARB) is 1.22%, while IQ Merger Arbitrage ETF (MNA) has a volatility of 1.36%. This indicates that ARB experiences smaller price fluctuations and is considered to be less risky than MNA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARB	MNA	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.22%	1.36%	-0.14%
Volatility (6M) Calculated over the trailing 6-month period	2.63%	3.52%	-0.89%
Volatility (1Y) Calculated over the trailing 1-year period	3.10%	4.75%	-1.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.43%	4.97%	-0.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.40%	6.53%	-2.13%

ARB vs. MNA - Expense Ratio Comparison

ARB has a 0.87% expense ratio, which is higher than MNA's 0.77% expense ratio.

Dividends

ARB vs. MNA - Dividend Comparison

ARB's dividend yield for the trailing twelve months is around 0.42%, while MNA has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARB AltShares Merger Arbitrage ETF	0.42%	0.43%	1.12%	0.00%	4.18%	0.00%	2.87%	0.00%	0.00%	0.00%	0.00%	0.00%
MNA IQ Merger Arbitrage ETF	0.00%	0.00%	0.00%	1.20%	0.00%	0.00%	2.30%	0.00%	0.00%	0.00%	0.21%	0.87%

Frequently Asked Questions

Can I hold both ARB and MNA in my portfolio?

ARB and MNA have a correlation of 0.38, 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 MNA?

MNA has higher volatility (1.36%) compared to ARB (1.22%). In terms of maximum drawdown, ARB dropped -5.60% vs MNA's -16.68%.

Which ETF is better, ARB or MNA?

On 5-year performance, ARB leads with 4.01% vs 2.05% for MNA. On fees, MNA is cheaper at 0.77% per year. On volatility, ARB has been the lower-risk option at 1.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ARB or MNA?

Over the 5-year period, ARB has performed better with a 4.01% return vs 2.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ARB or MNA?

MNA is cheaper with a 0.77% expense ratio, compared with 0.87% for ARB.

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

ARB has the higher dividend yield at 0.42%, compared with 0.00% for MNA.

What is the main difference between ARB and MNA?

ARB tracks Water Island Merger Arbitrage USD Hedged Index, while MNA tracks IQ Merger Arbitrage Index. They also come from different issuers: Water Island Capital Partners LP and New York Life. Their fees differ too: 0.87% for ARB and 0.77% for MNA.

Which has better risk-adjusted returns?

ARB currently has the higher Sharpe Ratio (1.61 vs 0.94), 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.