CDX vs. ARB
CDX (Simplify High Yield PLUS Credit Hedge ETF) and ARB (AltShares Merger Arbitrage ETF) are both exchange-traded funds - CDX is a High Yield Bonds fund actively managed by Simplify, while ARB is a Hedge Fund fund tracking the Water Island Merger Arbitrage USD Hedged Index. CDX is actively managed, while ARB is passively managed. Over the past 3 years, CDX returned 7.96%/yr vs 6.14%/yr for ARB. At a 0.18 correlation, their price movements are largely independent. CDX charges 0.26%/yr vs 0.87%/yr for ARB.
Performance
CDX vs. ARB - Performance Comparison
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Returns By Period
In the year-to-date period, CDX achieves a -1.51% return, which is significantly lower than ARB's 2.12% return.
CDX
- 1D
- 0.00%
- 1M
- 0.19%
- YTD
- -1.51%
- 6M
- -1.29%
- 1Y
- -1.35%
- 3Y*
- 7.96%
- 5Y*
- —
- 10Y*
- —
ARB
- 1D
- 0.15%
- 1M
- 0.40%
- YTD
- 2.12%
- 6M
- 2.35%
- 1Y
- 4.94%
- 3Y*
- 6.14%
- 5Y*
- 4.01%
- 10Y*
- —
CDX vs. ARB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
CDX Simplify High Yield PLUS Credit Hedge ETF | -1.51% | 9.51% | 7.71% | 12.74% | -8.26% |
ARB AltShares Merger Arbitrage ETF | 2.12% | 6.05% | 4.07% | 3.85% | 2.24% |
Correlation
The correlation between CDX and ARB is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.19 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.14 |
Correlation (All Time) Calculated using the full available price history since Feb 15, 2022 | 0.18 |
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Return for Risk
CDX vs. ARB — Risk / Return Rank
CDX
ARB
CDX vs. ARB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Simplify High Yield PLUS Credit Hedge ETF (CDX) and AltShares Merger Arbitrage ETF (ARB). 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.
| CDX | ARB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.85 | ||
| Sortino ratioReturn per unit of downside risk | -2.83 | ||
| Omega ratioGain probability vs. loss probability | 0.97 | 1.32 | -0.36 |
| Calmar ratioReturn relative to maximum drawdown | -0.32 | 4.62 | -4.95 |
| Martin ratioReturn relative to average drawdown | -0.71 | 17.70 | -18.41 |
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Drawdowns
CDX vs. ARB - Drawdown Comparison
The maximum CDX drawdown since its inception was -13.24%, which is greater than ARB's maximum drawdown of -5.60%. Use the drawdown chart below to compare losses from any high point for CDX and ARB.
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Drawdown Indicators
| CDX | ARB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.24% | -5.60% | -7.64% |
Max Drawdown (1Y)Largest decline over 1 year | -4.18% | -1.07% | -3.11% |
Max Drawdown (3Y)Largest decline over 3 years | -8.88% | -2.13% | -6.75% |
Max Drawdown (5Y)Largest decline over 5 years | — | -5.60% | — |
Current DrawdownCurrent decline from peak | -6.53% | -0.38% | -6.15% |
Average DrawdownAverage peak-to-trough decline | -4.36% | -0.94% | -3.42% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.90% | 0.28% | +1.62% |
Volatility
CDX vs. ARB - Volatility Comparison
Simplify High Yield PLUS Credit Hedge ETF (CDX) has a higher volatility of 1.58% compared to AltShares Merger Arbitrage ETF (ARB) at 1.22%. This indicates that CDX's price experiences larger fluctuations and is considered to be riskier than ARB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| CDX | ARB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.58% | 1.22% | +0.36% |
Volatility (6M)Calculated over the trailing 6-month period | 4.83% | 2.63% | +2.20% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.78% | 3.10% | +2.68% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.05% | 4.43% | +6.62% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.05% | 4.40% | +6.65% |
CDX vs. ARB - Expense Ratio Comparison
CDX has a 0.26% expense ratio, which is lower than ARB's 0.87% expense ratio.
Dividends
CDX vs. ARB - Dividend Comparison
CDX's dividend yield for the trailing twelve months is around 8.29%, more than ARB's 0.42% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|---|---|
ARB AltShares Merger Arbitrage ETF | 0.42% | 0.43% | 1.12% | 0.00% | 4.18% | 0.00% | 2.87% |
CDX Simplify High Yield PLUS Credit Hedge ETF | 8.29% | 7.18% | 12.60% | 5.26% | 7.51% | 0.00% | 0.00% |
Frequently Asked Questions
CDX and ARB have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
CDX has higher volatility (1.58%) compared to ARB (1.22%). In terms of maximum drawdown, CDX dropped -13.24% vs ARB's -5.60%.
On 3-year performance, CDX leads with 7.96% vs 6.14% for ARB. On fees, CDX is cheaper at 0.26% 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.
Over the 3-year period, CDX has performed better with a 7.96% return vs 6.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
CDX is cheaper with a 0.26% expense ratio, compared with 0.87% for ARB.
CDX has the higher dividend yield at 8.29%, compared with 0.42% for ARB.
CDX is categorized as High Yield Bonds, while ARB is Hedge Fund. They also come from different issuers: Simplify and Water Island Capital Partners LP. Their fees differ too: 0.26% for CDX and 0.87% for ARB.
ARB currently has the higher Sharpe Ratio (1.61 vs -0.23), 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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