MARB vs. ARB

Last updated Jun 23, 2026

MARB (First Trust Merger Arbitrage ETF) and ARB (AltShares Merger Arbitrage ETF) are both exchange-traded funds - MARB is a Long-Short fund actively managed by First Trust, while ARB is a Hedge Fund fund tracking the Water Island Merger Arbitrage USD Hedged Index. MARB is actively managed, while ARB is passively managed. Over the past 5 years, MARB returned 2.75%/yr vs 3.99%/yr for ARB. At a 0.32 correlation, their price movements are largely independent. MARB charges 2.30%/yr vs 0.87%/yr for ARB.

Performance

MARB vs. ARB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Merger Arbitrage ETF (MARB) 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, MARB achieves a 0.82% return, which is significantly lower than ARB's 1.96% return.

MARB

• 1D: -0.33%
• 1M: -0.36%
• YTD: 0.82%
• 6M: 1.04%
• 1Y: 5.67%
• 3Y*: 4.04%
• 5Y*: 2.75%
• 10Y*: —

ARB

• 1D: 0.20%
• 1M: 0.25%
• YTD: 1.96%
• 6M: 2.10%
• 1Y: 5.15%
• 3Y*: 6.09%
• 5Y*: 3.99%
• 10Y*: —

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

MARB vs. ARB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
MARB First Trust Merger Arbitrage ETF	0.82%	7.02%	0.73%	2.16%	3.89%	0.26%	-1.18%
ARB AltShares Merger Arbitrage ETF	1.96%	6.05%	4.07%	3.85%	2.67%	3.16%	3.77%

Correlation

The correlation between MARB and ARB is 0.04, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.04
Correlation (3Y) Calculated over the trailing 3-year period	0.25
Correlation (5Y) Calculated over the trailing 5-year period	0.32
Correlation (All Time) Calculated using the full available price history since May 7, 2020	0.32

Over the past year, the correlation between MARB and ARB has dropped to 0.04 - well below their long-term average of 0.32, suggesting their price drivers have been diverging.

Return for Risk

MARB vs. ARB — Risk / Return Rank

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

MARB

MARB Risk / Return Rank: 50
MARB Sharpe Ratio Rank: 31
MARB Sortino Ratio Rank: 32
MARB Omega Ratio Rank: 49
MARB Calmar Ratio Rank: 49
MARB Martin Ratio Rank: 89

ARB

ARB Risk / Return Rank: 68
ARB Sharpe Ratio Rank: 50
ARB Sortino Ratio Rank: 57
ARB Omega Ratio Rank: 56
ARB Calmar Ratio Rank: 87
ARB Martin Ratio Rank: 88

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.

MARB vs. ARB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Merger Arbitrage ETF (MARB) 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.

	MARB	ARB	Difference
Sharpe ratio: Return per unit of total volatility	1.08	1.67	-0.59
Sortino ratio: Return per unit of downside risk	1.66	2.64	-0.98
Omega ratio: Gain probability vs. loss probability	1.30	1.34	-0.04
Calmar ratio: Return relative to maximum drawdown	2.35	4.82	-2.47
Martin ratio: Return relative to average drawdown	19.40	18.47	+0.92

MARB vs. ARB - Sharpe Ratio Comparison

The current MARB Sharpe Ratio is 1.08, which is lower than the ARB Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of MARB 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.

Drawdowns

MARB vs. ARB - Drawdown Comparison

The maximum MARB drawdown since its inception was -11.99%, which is greater than ARB's maximum drawdown of -5.60%. Use the drawdown chart below to compare losses from any high point for MARB and ARB.

Drawdown Indicators

	MARB	ARB	Difference
Max Drawdown Largest peak-to-trough decline	-11.99%	-5.60%	-6.39%
Max Drawdown (1Y) Largest decline over 1 year	-2.43%	-1.07%	-1.36%
Max Drawdown (3Y) Largest decline over 3 years	-3.67%	-2.13%	-1.54%
Max Drawdown (5Y) Largest decline over 5 years	-3.67%	-5.60%	+1.93%
Current Drawdown Current decline from peak	-0.60%	-0.54%	-0.06%
Average Drawdown Average peak-to-trough decline	-1.39%	-0.94%	-0.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.29%	0.28%	+0.01%

Volatility

MARB vs. ARB - Volatility Comparison

The current volatility for First Trust Merger Arbitrage ETF (MARB) is 0.56%, while AltShares Merger Arbitrage ETF (ARB) has a volatility of 1.23%. This indicates that MARB experiences smaller price fluctuations and is considered to be less risky than ARB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MARB	ARB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.56%	1.23%	-0.67%
Volatility (6M) Calculated over the trailing 6-month period	2.17%	2.63%	-0.46%
Volatility (1Y) Calculated over the trailing 1-year period	5.29%	3.10%	+2.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.26%	4.43%	-0.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.58%	4.40%	+1.18%

MARB vs. ARB - Expense Ratio Comparison

MARB has a 2.30% expense ratio, which is higher than ARB's 0.87% expense ratio.

Dividends

MARB vs. ARB - Dividend Comparison

MARB's dividend yield for the trailing twelve months is around 2.99%, 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%
MARB First Trust Merger Arbitrage ETF	2.99%	3.01%	2.11%	2.20%	0.99%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MARB and ARB in my portfolio?

MARB and ARB have a correlation of 0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MARB or ARB?

ARB has higher volatility (1.23%) compared to MARB (0.56%). In terms of maximum drawdown, MARB dropped -11.99% vs ARB's -5.60%.

Which ETF is better, MARB or ARB?

On 5-year performance, ARB leads with 3.99% vs 2.75% for MARB. On fees, ARB is cheaper at 0.87% per year. On volatility, MARB has been the lower-risk option at 0.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MARB or ARB?

Over the 5-year period, ARB has performed better with a 3.99% return vs 2.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MARB or ARB?

ARB is cheaper with a 0.87% expense ratio, compared with 2.30% for MARB.

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

MARB has the higher dividend yield at 2.99%, compared with 0.42% for ARB.

What is the main difference between MARB and ARB?

MARB is categorized as Long-Short, while ARB is Hedge Fund. They also come from different issuers: First Trust and Water Island Capital Partners LP. Their fees differ too: 2.30% for MARB and 0.87% for ARB.

Which has better risk-adjusted returns?

ARB currently has the higher Sharpe Ratio (1.67 vs 1.08), 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.