ARCM vs. VRP
ARCM (Arrow Reserve Capital Management ETF) and VRP (Invesco Variable Rate Preferred ETF) are both exchange-traded funds - ARCM is a Ultrashort Bond fund actively managed by Arrow Funds, while VRP is a Preferred Stock/Convertible Bonds fund tracking the Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index. ARCM is actively managed, while VRP is passively managed. Over the past 5 years, ARCM returned 3.19%/yr vs 4.30%/yr for VRP. At a 0.08 correlation, their price movements are largely independent. Both charge a 0.50% expense ratio.
Performance
ARCM vs. VRP - Performance Comparison
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Returns By Period
In the year-to-date period, ARCM achieves a 1.49% return, which is significantly lower than VRP's 2.19% return.
ARCM
- 1D
- -0.02%
- 1M
- 0.27%
- YTD
- 1.49%
- 6M
- 1.59%
- 1Y
- 3.64%
- 3Y*
- 4.67%
- 5Y*
- 3.19%
- 10Y*
- —
VRP
- 1D
- -0.21%
- 1M
- 0.45%
- YTD
- 2.19%
- 6M
- 2.32%
- 1Y
- 6.26%
- 3Y*
- 9.75%
- 5Y*
- 4.30%
- 10Y*
- 5.18%
ARCM vs. VRP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ARCM Arrow Reserve Capital Management ETF | 1.49% | 4.11% | 5.24% | 4.72% | 0.69% | -0.26% | 0.95% | 2.70% | 1.33% | 1.17% |
VRP Invesco Variable Rate Preferred ETF | 2.19% | 7.34% | 11.10% | 10.35% | -9.00% | 4.20% | 5.11% | 18.84% | -6.62% | 4.46% |
Correlation
The correlation between ARCM and VRP is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.29 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.18 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.13 |
Correlation (All Time) Calculated using the full available price history since Mar 31, 2017 | 0.08 |
Over the past year, ARCM and VRP have become more correlated (0.29) than their long-term average of 0.08, meaning their price movements have been converging.
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Return for Risk
ARCM vs. VRP — Risk / Return Rank
ARCM
VRP
ARCM vs. VRP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Arrow Reserve Capital Management ETF (ARCM) and Invesco Variable Rate Preferred ETF (VRP). 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 | VRP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +6.06 | ||
| Sortino ratioReturn per unit of downside risk | +13.92 | ||
| Omega ratioGain probability vs. loss probability | 4.32 | 1.46 | +2.86 |
| Calmar ratioReturn relative to maximum drawdown | 29.32 | 2.17 | +27.14 |
| Martin ratioReturn relative to average drawdown | 235.95 | 11.68 | +224.27 |
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Drawdowns
ARCM vs. VRP - Drawdown Comparison
The maximum ARCM drawdown since its inception was -4.08%, smaller than the maximum VRP drawdown of -46.04%. Use the drawdown chart below to compare losses from any high point for ARCM and VRP.
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Drawdown Indicators
| ARCM | VRP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -4.08% | -46.04% | +41.96% |
Max Drawdown (1Y)Largest decline over 1 year | -0.12% | -2.89% | +2.77% |
Max Drawdown (3Y)Largest decline over 3 years | -3.46% | -4.26% | +0.80% |
Max Drawdown (5Y)Largest decline over 5 years | -3.46% | -13.76% | +10.30% |
Max Drawdown (10Y)Largest decline over 10 years | — | -46.04% | — |
Current DrawdownCurrent decline from peak | -0.02% | -0.21% | +0.19% |
Average DrawdownAverage peak-to-trough decline | -0.72% | -2.30% | +1.58% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.02% | 0.54% | -0.52% |
Volatility
ARCM vs. VRP - Volatility Comparison
The current volatility for Arrow Reserve Capital Management ETF (ARCM) is 0.11%, while Invesco Variable Rate Preferred ETF (VRP) has a volatility of 0.54%. This indicates that ARCM experiences smaller price fluctuations and is considered to be less risky than VRP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ARCM | VRP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.11% | 0.54% | -0.43% |
Volatility (6M)Calculated over the trailing 6-month period | 0.30% | 2.33% | -2.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 0.44% | 2.90% | -2.46% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.02% | 6.55% | -3.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.13% | 14.53% | -11.40% |
ARCM vs. VRP - Expense Ratio Comparison
Both ARCM and VRP have an expense ratio of 0.50%.
Dividends
ARCM vs. VRP - Dividend Comparison
ARCM's dividend yield for the trailing twelve months is around 3.73%, less than VRP's 6.69% 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% |
VRP Invesco Variable Rate Preferred ETF | 6.69% | 6.53% | 5.78% | 6.61% | 5.38% | 4.25% | 4.17% | 4.71% | 5.28% | 4.69% | 5.10% | 5.02% |
Frequently Asked Questions
ARCM and VRP have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VRP has higher volatility (0.54%) compared to ARCM (0.11%). In terms of maximum drawdown, ARCM dropped -4.08% vs VRP's -46.04%.
On 5-year performance, VRP leads with 4.30% vs 3.19% for ARCM. Both ETFs have the same 0.50% expense ratio. On volatility, ARCM has been the lower-risk option at 0.11%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VRP has performed better with a 4.30% return vs 3.19%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
ARCM and VRP have the same expense ratio: 0.50% per year.
VRP has the higher dividend yield at 6.69%, compared with 3.73% for ARCM.
ARCM is categorized as Ultrashort Bond, while VRP is Preferred Stock/Convertible Bonds. They also come from different issuers: Arrow Funds and Invesco.
ARCM currently has the higher Sharpe Ratio (8.23 vs 2.17), 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.
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