ARCM vs. FXAIX

Last updated Jun 24, 2026

ARCM (Arrow Reserve Capital Management ETF) and FXAIX (Fidelity 500 Index Fund) are both funds - ARCM is a Ultrashort Bond fund actively managed by Arrow Funds, while FXAIX is a S&P 500 fund tracking the S&P 500 Index. ARCM is actively managed, while FXAIX is passively managed. Over the past 5 years, ARCM returned 3.19%/yr vs 13.60%/yr for FXAIX. At a 0.03 correlation, their price movements are largely independent. ARCM charges 0.50%/yr vs 0.02%/yr for FXAIX.

Performance

ARCM vs. FXAIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Arrow Reserve Capital Management ETF (ARCM) and Fidelity 500 Index Fund (FXAIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ARCM achieves a 1.47% return, which is significantly lower than FXAIX's 9.79% return.

ARCM

• 1D: -0.02%
• 1M: 0.25%
• YTD: 1.47%
• 6M: 1.60%
• 1Y: 3.60%
• 3Y*: 4.66%
• 5Y*: 3.19%
• 10Y*: —

FXAIX

• 1D: -0.37%
• 1M: 0.10%
• YTD: 9.79%
• 6M: 8.79%
• 1Y: 25.51%
• 3Y*: 21.39%
• 5Y*: 13.60%
• 10Y*: 15.80%

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

ARCM vs. FXAIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ARCM Arrow Reserve Capital Management ETF	1.47%	4.11%	5.24%	4.72%	0.69%	-0.26%	0.95%	2.70%	1.33%	1.17%
FXAIX Fidelity 500 Index Fund	9.79%	17.84%	25.01%	26.29%	-18.14%	28.71%	18.42%	31.48%	-4.43%	14.61%

Correlation

The correlation between ARCM and FXAIX is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.33
Correlation (3Y) Calculated over the trailing 3-year period	0.17
Correlation (5Y) Calculated over the trailing 5-year period	0.07
Correlation (All Time) Calculated using the full available price history since Mar 31, 2017	0.03

Over the past year, ARCM and FXAIX have become more correlated (0.33) than their long-term average of 0.03, meaning their price movements have been converging.

Return for Risk

ARCM vs. FXAIX — Risk / Return Rank

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

ARCM

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

FXAIX

FXAIX Risk / Return Rank: 65
FXAIX Sharpe Ratio Rank: 64
FXAIX Sortino Ratio Rank: 57
FXAIX Omega Ratio Rank: 59
FXAIX Calmar Ratio Rank: 68
FXAIX Martin Ratio Rank: 78

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.

ARCM vs. FXAIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Arrow Reserve Capital Management ETF (ARCM) and Fidelity 500 Index Fund (FXAIX). 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.

	ARCM	FXAIX	Difference
Sharpe ratio: Return per unit of total volatility	8.12	2.15	+5.96
Sortino ratio: Return per unit of downside risk	16.80	2.91	+13.89
Omega ratio: Gain probability vs. loss probability	4.22	1.39	+2.83
Calmar ratio: Return relative to maximum drawdown	28.99	3.02	+25.97
Martin ratio: Return relative to average drawdown	229.47	13.62	+215.85

ARCM vs. FXAIX - Sharpe Ratio Comparison

The current ARCM Sharpe Ratio is 8.12, which is higher than the FXAIX Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of ARCM and FXAIX, 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

ARCM vs. FXAIX - Drawdown Comparison

The maximum ARCM drawdown since its inception was -4.08%, smaller than the maximum FXAIX drawdown of -33.79%. Use the drawdown chart below to compare losses from any high point for ARCM and FXAIX.

Drawdown Indicators

	ARCM	FXAIX	Difference
Max Drawdown Largest peak-to-trough decline	-4.08%	-33.79%	+29.71%
Max Drawdown (1Y) Largest decline over 1 year	-0.12%	-8.89%	+8.77%
Max Drawdown (3Y) Largest decline over 3 years	-3.46%	-18.76%	+15.30%
Max Drawdown (5Y) Largest decline over 5 years	-3.46%	-24.50%	+21.04%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.79%	—
Current Drawdown Current decline from peak	-0.04%	-1.72%	+1.68%
Average Drawdown Average peak-to-trough decline	-0.72%	-3.79%	+3.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.02%	1.97%	-1.95%

Volatility

ARCM vs. FXAIX - Volatility Comparison

The current volatility for Arrow Reserve Capital Management ETF (ARCM) is 0.11%, while Fidelity 500 Index Fund (FXAIX) has a volatility of 4.68%. This indicates that ARCM experiences smaller price fluctuations and is considered to be less risky than FXAIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARCM	FXAIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.11%	4.68%	-4.57%
Volatility (6M) Calculated over the trailing 6-month period	0.30%	9.84%	-9.54%
Volatility (1Y) Calculated over the trailing 1-year period	0.45%	12.50%	-12.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.02%	17.00%	-13.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.13%	18.12%	-14.99%

ARCM vs. FXAIX - Expense Ratio Comparison

ARCM has a 0.50% expense ratio, which is higher than FXAIX's 0.02% expense ratio.

Dividends

ARCM vs. FXAIX - Dividend Comparison

ARCM's dividend yield for the trailing twelve months is around 3.73%, more than FXAIX's 1.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARCM Arrow Reserve Capital Management ETF	3.73%	4.13%	4.87%	4.26%	0.90%	0.02%	0.84%	2.32%	1.91%	0.62%	0.00%	0.00%
FXAIX Fidelity 500 Index Fund	1.04%	1.11%	1.25%	1.45%	1.69%	1.22%	1.60%	2.06%	2.72%	1.97%	2.52%	2.83%

Frequently Asked Questions

Can I hold both ARCM and FXAIX in my portfolio?

ARCM and FXAIX have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ARCM or FXAIX?

FXAIX has higher volatility (4.68%) compared to ARCM (0.11%). In terms of maximum drawdown, ARCM dropped -4.08% vs FXAIX's -33.79%.

Which has better risk-adjusted returns?

ARCM currently has the higher Sharpe Ratio (8.12 vs 2.15), 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.