ARB vs. MRGR

Last updated Jun 19, 2026

ARB (AltShares Merger Arbitrage ETF) and MRGR (Proshares Merger ETF) are both Hedge Fund funds - ARB tracks the Water Island Merger Arbitrage USD Hedged Index while MRGR tracks the S&P Merger Arbitrage Index. Both are passively managed. Over the past 5 years, ARB returned 3.93%/yr vs 4.12%/yr for MRGR. At a 0.42 correlation, their price movements are largely independent. ARB charges 0.87%/yr vs 0.75%/yr for MRGR.

Performance

ARB vs. MRGR - Performance Comparison

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

Returns By Period

In the year-to-date period, ARB achieves a 1.75% return, which is significantly lower than MRGR's 2.12% return.

ARB

• 1D: 0.20%
• 1M: 0.13%
• YTD: 1.75%
• 6M: 2.17%
• 1Y: 4.72%
• 3Y*: 5.95%
• 5Y*: 3.93%
• 10Y*: —

MRGR

• 1D: 0.28%
• 1M: 0.55%
• YTD: 2.12%
• 6M: 2.10%
• 1Y: 10.73%
• 3Y*: 8.55%
• 5Y*: 4.12%
• 10Y*: 3.51%

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

ARB vs. MRGR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
ARB AltShares Merger Arbitrage ETF	1.75%	6.05%	4.07%	3.85%	2.67%	3.16%	3.77%
MRGR Proshares Merger ETF	2.12%	11.99%	5.32%	4.94%	-4.81%	6.58%	1.85%

Correlation

The correlation between ARB and MRGR is 0.15, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.15
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.42
Correlation (All Time) Calculated using the full available price history since May 7, 2020	0.42

Over the past year, the correlation between ARB and MRGR has dropped to 0.15 - well below their long-term average of 0.42, suggesting their price drivers have been diverging.

Return for Risk

ARB vs. MRGR — Risk / Return Rank

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

ARB

ARB Risk / Return Rank: 64
ARB Sharpe Ratio Rank: 46
ARB Sortino Ratio Rank: 53
ARB Omega Ratio Rank: 51
ARB Calmar Ratio Rank: 85
ARB Martin Ratio Rank: 86

MRGR

MRGR Risk / Return Rank: 91
MRGR Sharpe Ratio Rank: 85
MRGR Sortino Ratio Rank: 93
MRGR Omega Ratio Rank: 88
MRGR Calmar Ratio Rank: 96
MRGR Martin Ratio Rank: 93

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. MRGR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AltShares Merger Arbitrage ETF (ARB) and Proshares Merger ETF (MRGR). 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	MRGR	Difference
Sharpe ratio: Return per unit of total volatility	1.53	2.55	-1.02
Sortino ratio: Return per unit of downside risk	2.41	4.33	-1.91
Omega ratio: Gain probability vs. loss probability	1.31	1.50	-0.20
Calmar ratio: Return relative to maximum drawdown	4.41	8.33	-3.91
Martin ratio: Return relative to average drawdown	17.04	22.69	-5.65

ARB vs. MRGR - Sharpe Ratio Comparison

The current ARB Sharpe Ratio is 1.53, which is lower than the MRGR Sharpe Ratio of 2.55. The chart below compares the historical Sharpe Ratios of ARB and MRGR, 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. MRGR - Drawdown Comparison

The maximum ARB drawdown since its inception was -5.60%, smaller than the maximum MRGR drawdown of -13.23%. Use the drawdown chart below to compare losses from any high point for ARB and MRGR.

Drawdown Indicators

	ARB	MRGR	Difference
Max Drawdown Largest peak-to-trough decline	-5.60%	-13.23%	+7.63%
Max Drawdown (1Y) Largest decline over 1 year	-1.07%	-1.29%	+0.22%
Max Drawdown (3Y) Largest decline over 3 years	-2.13%	-2.10%	-0.03%
Max Drawdown (5Y) Largest decline over 5 years	-5.60%	-8.40%	+2.80%
Max Drawdown (10Y) Largest decline over 10 years	—	-13.23%	—
Current Drawdown Current decline from peak	-0.74%	-0.30%	-0.44%
Average Drawdown Average peak-to-trough decline	-0.94%	-3.85%	+2.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.28%	0.48%	-0.20%

Volatility

ARB vs. MRGR - Volatility Comparison

AltShares Merger Arbitrage ETF (ARB) and Proshares Merger ETF (MRGR) have volatilities of 1.22% and 1.27%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARB	MRGR	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.22%	1.27%	-0.05%
Volatility (6M) Calculated over the trailing 6-month period	2.62%	2.92%	-0.30%
Volatility (1Y) Calculated over the trailing 1-year period	3.10%	4.23%	-1.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.43%	3.84%	+0.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.41%	5.16%	-0.75%

ARB vs. MRGR - Expense Ratio Comparison

ARB has a 0.87% expense ratio, which is higher than MRGR's 0.75% expense ratio.

Dividends

ARB vs. MRGR - Dividend Comparison

ARB's dividend yield for the trailing twelve months is around 0.42%, less than MRGR's 2.96% yield.

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%
MRGR Proshares Merger ETF	2.96%	3.12%	3.21%	2.11%	0.61%	0.59%	0.00%	0.78%	1.39%	0.36%	0.74%	0.34%

Frequently Asked Questions

Can I hold both ARB and MRGR in my portfolio?

ARB and MRGR have a correlation of 0.15, 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 MRGR?

MRGR has higher volatility (1.27%) compared to ARB (1.22%). In terms of maximum drawdown, ARB dropped -5.60% vs MRGR's -13.23%.

Which ETF is better, ARB or MRGR?

On 5-year performance, MRGR leads with 4.12% vs 3.93% for ARB. On fees, MRGR is cheaper at 0.75% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ARB or MRGR?

Over the 5-year period, MRGR has performed better with a 4.12% return vs 3.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ARB or MRGR?

MRGR is cheaper with a 0.75% expense ratio, compared with 0.87% for ARB.

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

MRGR has the higher dividend yield at 2.96%, compared with 0.42% for ARB.

What is the main difference between ARB and MRGR?

ARB tracks Water Island Merger Arbitrage USD Hedged Index, while MRGR tracks S&P Merger Arbitrage Index. They also come from different issuers: Water Island Capital Partners LP and ProShares. Their fees differ too: 0.87% for ARB and 0.75% for MRGR.

Which has better risk-adjusted returns?

MRGR currently has the higher Sharpe Ratio (2.55 vs 1.53), 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.