CDX vs. ARB

Last updated Jun 4, 2026

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 7.17%/yr vs 6.40%/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

The chart below illustrates the hypothetical performance of a $10,000 investment in Simplify High Yield PLUS Credit Hedge ETF (CDX) and AltShares Merger Arbitrage ETF (ARB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CDX achieves a -2.44% return, which is significantly lower than ARB's 1.70% return.

CDX

• 1D: -0.19%
• 1M: -0.71%
• YTD: -2.44%
• 6M: -2.70%
• 1Y: -1.77%
• 3Y*: 7.17%
• 5Y*: —
• 10Y*: —

ARB

• 1D: 0.03%
• 1M: 0.35%
• YTD: 1.70%
• 6M: 2.28%
• 1Y: 4.90%
• 3Y*: 6.40%
• 5Y*: 3.87%
• 10Y*: —

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

CDX vs. ARB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
CDX Simplify High Yield PLUS Credit Hedge ETF	-2.44%	9.51%	7.71%	12.74%	-8.12%
ARB AltShares Merger Arbitrage ETF	1.70%	6.05%	4.07%	3.85%	2.10%

Correlation

The correlation between CDX and ARB is 0.16, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.16
Correlation (3Y) Calculated over the trailing 3-year period	0.13
Correlation (All Time) Calculated using the full available price history since Feb 16, 2022	0.18

CDX vs. ARB - Sectors Allocation Comparison

Sectors	CDX	ARB
Technology	24.6%	16.3%
Industrials	15.1%	11.9%
Healthcare	14.2%	17.4%
Financial Services	10.0%	21.4%
Consumer Cyclical	9.8%	5.6%
Energy	6.9%	0.6%
Real Estate	4.2%	3.1%
Communication Services	4.1%	9.9%
Consumer Defensive	4.1%	6.2%
Basic Materials	4.0%	5.3%
Utilities	2.9%	3.1%

Return for Risk

CDX vs. ARB — Risk / Return Rank

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

CDX

CDX Risk / Return Rank: 5
CDX Sharpe Ratio Rank: 6
CDX Sortino Ratio Rank: 5
CDX Omega Ratio Rank: 5
CDX Calmar Ratio Rank: 5
CDX Martin Ratio Rank: 4

ARB

ARB Risk / Return Rank: 69
ARB Sharpe Ratio Rank: 48
ARB Sortino Ratio Rank: 57
ARB Omega Ratio Rank: 56
ARB Calmar Ratio Rank: 94
ARB Martin Ratio Rank: 90

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.

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.

	CDX	ARB	Difference
Sharpe ratio: Return per unit of total volatility	-0.31	1.70	-2.01
Sortino ratio: Return per unit of downside risk	-0.40	2.77	-3.17
Omega ratio: Gain probability vs. loss probability	0.95	1.35	-0.39
Calmar ratio: Return relative to maximum drawdown	-0.43	7.17	-7.60
Martin ratio: Return relative to average drawdown	-1.00	20.90	-21.90
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CDX vs. ARB - Sharpe Ratio Comparison

The current CDX Sharpe Ratio is -0.31, which is lower than the ARB Sharpe Ratio of 1.70. The chart below compares the historical Sharpe Ratios of CDX and ARB, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	CDX	ARB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.31	1.70	-2.01
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.88	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	0.95	-0.57

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.

Drawdown Indicators

	CDX	ARB	Difference
Max Drawdown Largest peak-to-trough decline	-13.24%	-5.60%	-7.64%
Max Drawdown (1Y) Largest decline over 1 year	-4.18%	-0.69%	-3.49%
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 Drawdown Current decline from peak	-7.41%	-0.49%	-6.92%
Average Drawdown Average peak-to-trough decline	-4.34%	-0.94%	-3.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.77%	0.24%	+1.53%

Volatility

CDX vs. ARB - Volatility Comparison

Simplify High Yield PLUS Credit Hedge ETF (CDX) has a higher volatility of 1.61% compared to AltShares Merger Arbitrage ETF (ARB) at 1.28%. 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.

Volatility by Period

	CDX	ARB	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.61%	1.28%	+0.33%
Volatility (6M) Calculated over the trailing 6-month period	4.72%	2.38%	+2.34%
Volatility (1Y) Calculated over the trailing 1-year period	5.69%	2.89%	+2.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.10%	4.40%	+6.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.10%	4.40%	+6.70%

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 8.37%, more than ARB's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
ARB AltShares Merger Arbitrage ETF	0.43%	0.43%	1.12%	0.00%	4.18%	0.00%	2.87%
CDX Simplify High Yield PLUS Credit Hedge ETF	8.37%	7.18%	12.60%	5.26%	7.51%	0.00%	0.00%

Frequently Asked Questions

Can I hold both CDX and ARB in my portfolio?

CDX and ARB have a correlation of 0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CDX or ARB?

CDX has higher volatility (1.61%) compared to ARB (1.28%). In terms of maximum drawdown, CDX dropped -13.24% vs ARB's -5.60%.

Which ETF is better, CDX or ARB?

On 3-year performance, CDX leads with 7.17% vs 6.40% for ARB. On fees, CDX is cheaper at 0.26% per year. On volatility, ARB has been the lower-risk option at 1.28%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CDX or ARB?

Over the 3-year period, CDX has performed better with a 7.17% return vs 6.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CDX or ARB?

CDX is cheaper with a 0.26% expense ratio, compared with 0.87% for ARB.

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

CDX has the higher dividend yield at 8.37%, compared with 0.43% for ARB.

What is the main difference between CDX and 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.

Which has better risk-adjusted returns?

ARB currently has the higher Sharpe Ratio (1.70 vs -0.31), 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.