MARB vs. HDG

Last updated Jun 4, 2026

MARB (First Trust Merger Arbitrage ETF) and HDG (ProShares Hedge Replication) are both Long-Short funds. MARB is actively managed, while HDG is passively managed. Over the past 5 years, MARB returned 2.64%/yr vs 3.02%/yr for HDG. At a 0.23 correlation, their price movements are largely independent. MARB charges 2.30%/yr vs 0.95%/yr for HDG.

Performance

MARB vs. HDG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Merger Arbitrage ETF (MARB) and ProShares Hedge Replication (HDG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MARB achieves a 1.26% return, which is significantly lower than HDG's 6.40% return.

MARB

• 1D: 0.05%
• 1M: 0.22%
• YTD: 1.26%
• 6M: 1.42%
• 1Y: 6.18%
• 3Y*: 4.29%
• 5Y*: 2.64%
• 10Y*: —

HDG

• 1D: -0.37%
• 1M: 2.07%
• YTD: 6.40%
• 6M: 7.00%
• 1Y: 13.22%
• 3Y*: 7.56%
• 5Y*: 3.02%
• 10Y*: 3.91%

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

MARB vs. HDG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
MARB First Trust Merger Arbitrage ETF	1.26%	7.02%	0.73%	2.16%	3.89%	0.26%	-2.35%
HDG ProShares Hedge Replication	6.40%	7.18%	5.12%	7.14%	-8.48%	2.97%	6.76%

Correlation

The correlation between MARB and HDG is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.11
Correlation (3Y) Calculated over the trailing 3-year period	0.22
Correlation (5Y) Calculated over the trailing 5-year period	0.21
Correlation (All Time) Calculated using the full available price history since Feb 6, 2020	0.23

The correlation between MARB and HDG shifts across timeframes, from 0.11 (1 year) to 0.23 (all time), reflecting how their relationship changes across market environments.

MARB vs. HDG - Sectors Allocation Comparison

Sectors	MARB	HDG
Healthcare	29.7%	16.5%
Real Estate	20.0%	6.1%
Communication Services	15.2%	2.4%
Financial Services	15.0%	15.8%
Technology	14.3%	17.0%
Industrials	9.1%	17.7%
Consumer Cyclical	5.8%	8.4%
Basic Materials	-	4.8%
Consumer Defensive	-	2.4%
Energy	-	6.1%
Utilities	-	2.9%

Return for Risk

MARB vs. HDG — Risk / Return Rank

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

MARB

MARB Risk / Return Rank: 52
MARB Sharpe Ratio Rank: 32
MARB Sortino Ratio Rank: 34
MARB Omega Ratio Rank: 51
MARB Calmar Ratio Rank: 52
MARB Martin Ratio Rank: 90

HDG

HDG Risk / Return Rank: 73
HDG Sharpe Ratio Rank: 72
HDG Sortino Ratio Rank: 77
HDG Omega Ratio Rank: 76
HDG Calmar Ratio Rank: 67
HDG Martin Ratio Rank: 73

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. HDG - Risk-Adjusted Trends Comparison

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

	MARB	HDG	Difference
Sharpe ratio: Return per unit of total volatility	1.17	2.36	-1.19
Sortino ratio: Return per unit of downside risk	1.80	3.50	-1.70
Omega ratio: Gain probability vs. loss probability	1.32	1.46	-0.14
Calmar ratio: Return relative to maximum drawdown	2.56	3.35	-0.79
Martin ratio: Return relative to average drawdown	20.98	13.81	+7.17
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MARB vs. HDG - Sharpe Ratio Comparison

The current MARB Sharpe Ratio is 1.17, which is lower than the HDG Sharpe Ratio of 2.36. The chart below compares the historical Sharpe Ratios of MARB and HDG, 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

	MARB	HDG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.17	2.36	-1.19
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.62	0.42	+0.20
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.55	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.36	0.43	-0.07

Drawdowns

MARB vs. HDG - Drawdown Comparison

The maximum MARB drawdown since its inception was -11.99%, smaller than the maximum HDG drawdown of -15.31%. Use the drawdown chart below to compare losses from any high point for MARB and HDG.

Drawdown Indicators

	MARB	HDG	Difference
Max Drawdown Largest peak-to-trough decline	-11.99%	-15.31%	+3.32%
Max Drawdown (1Y) Largest decline over 1 year	-2.43%	-3.97%	+1.54%
Max Drawdown (3Y) Largest decline over 3 years	-3.67%	-7.20%	+3.53%
Max Drawdown (5Y) Largest decline over 5 years	-3.67%	-15.31%	+11.64%
Max Drawdown (10Y) Largest decline over 10 years	—	-15.31%	—
Current Drawdown Current decline from peak	-0.00%	-0.37%	+0.37%
Average Drawdown Average peak-to-trough decline	-1.40%	-2.77%	+1.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.30%	0.96%	-0.66%

Volatility

MARB vs. HDG - Volatility Comparison

The current volatility for First Trust Merger Arbitrage ETF (MARB) is 0.47%, while ProShares Hedge Replication (HDG) has a volatility of 2.06%. This indicates that MARB experiences smaller price fluctuations and is considered to be less risky than HDG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MARB	HDG	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.47%	2.06%	-1.59%
Volatility (6M) Calculated over the trailing 6-month period	2.18%	4.58%	-2.40%
Volatility (1Y) Calculated over the trailing 1-year period	5.31%	5.64%	-0.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.27%	7.15%	-2.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.60%	7.11%	-1.51%

MARB vs. HDG - Expense Ratio Comparison

MARB has a 2.30% expense ratio, which is higher than HDG's 0.95% expense ratio.

Dividends

MARB vs. HDG - Dividend Comparison

MARB's dividend yield for the trailing twelve months is around 2.98%, more than HDG's 2.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HDG ProShares Hedge Replication	2.35%	2.55%	3.50%	3.48%	0.39%	0.00%	0.08%	1.09%	0.51%	0.00%	0.00%	0.00%
MARB First Trust Merger Arbitrage ETF	2.98%	3.01%	2.11%	2.20%	0.99%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MARB and HDG in my portfolio?

MARB and HDG have a correlation of 0.11, 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 HDG?

HDG has higher volatility (2.06%) compared to MARB (0.47%). In terms of maximum drawdown, MARB dropped -11.99% vs HDG's -15.31%.

Which ETF is better, MARB or HDG?

On 5-year performance, HDG leads with 3.02% vs 2.64% for MARB. On fees, HDG is cheaper at 0.95% per year. On volatility, MARB has been the lower-risk option at 0.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MARB or HDG?

Over the 5-year period, HDG has performed better with a 3.02% return vs 2.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MARB or HDG?

HDG is cheaper with a 0.95% expense ratio, compared with 2.30% for MARB.

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

MARB has the higher dividend yield at 2.98%, compared with 2.35% for HDG.

What is the main difference between MARB and HDG?

They also come from different issuers: First Trust and ProShares. Their fees differ too: 2.30% for MARB and 0.95% for HDG.

Which has better risk-adjusted returns?

HDG currently has the higher Sharpe Ratio (2.36 vs 1.17), 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.