MNA vs. ARB

Last updated Jun 3, 2026

MNA (IQ Merger Arbitrage ETF) and ARB (AltShares Merger Arbitrage ETF) are both Hedge Fund funds - MNA tracks the IQ Merger Arbitrage Index while ARB tracks the Water Island Merger Arbitrage USD Hedged Index. Both are passively managed. Over the past 5 years, MNA returned 1.96%/yr vs 3.89%/yr for ARB. At a 0.45 correlation, their price movements are largely independent. MNA charges 0.77%/yr vs 0.87%/yr for ARB.

Performance

MNA vs. ARB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in IQ Merger Arbitrage ETF (MNA) 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, MNA achieves a 1.44% return, which is significantly lower than ARB's 1.67% return.

MNA

• 1D: 0.23%
• 1M: -0.12%
• YTD: 1.44%
• 6M: 1.41%
• 1Y: 3.76%
• 3Y*: 5.68%
• 5Y*: 1.96%
• 10Y*: 2.69%

ARB

• 1D: 0.10%
• 1M: 0.12%
• YTD: 1.67%
• 6M: 2.25%
• 1Y: 4.85%
• 3Y*: 6.38%
• 5Y*: 3.89%
• 10Y*: —

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

MNA vs. ARB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
MNA IQ Merger Arbitrage ETF	1.44%	8.59%	4.93%	0.18%	-1.61%	-3.24%	7.68%
ARB AltShares Merger Arbitrage ETF	1.67%	6.05%	4.07%	3.85%	2.67%	3.16%	3.78%

Correlation

The correlation between MNA and ARB is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.36
Correlation (3Y) Calculated over the trailing 3-year period	0.38
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (All Time) Calculated using the full available price history since May 8, 2020	0.45

The correlation between MNA and ARB shifts across timeframes, from 0.36 (1 year) to 0.46 (5 years), reflecting how their relationship changes across market environments.

MNA vs. ARB - Sectors Allocation Comparison

Sectors	MNA	ARB
Industrials	22.3%	11.9%
Utilities	15.3%	3.1%
Financial Services	11.4%	21.4%
Healthcare	11.3%	17.4%
Basic Materials	10.3%	5.3%
Communication Services	9.2%	9.9%
Technology	8.3%	16.3%
Real Estate	5.1%	3.1%
Consumer Defensive	4.4%	6.2%
Consumer Cyclical	2.4%	5.6%
Energy	-	0.6%

Return for Risk

MNA vs. ARB — Risk / Return Rank

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

MNA

MNA Risk / Return Rank: 34
MNA Sharpe Ratio Rank: 23
MNA Sortino Ratio Rank: 22
MNA Omega Ratio Rank: 22
MNA Calmar Ratio Rank: 57
MNA Martin Ratio Rank: 44

ARB

ARB Risk / Return Rank: 68
ARB Sharpe Ratio Rank: 48
ARB Sortino Ratio Rank: 57
ARB Omega Ratio Rank: 55
ARB Calmar Ratio Rank: 93
ARB Martin Ratio Rank: 89

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.

MNA vs. ARB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for IQ Merger Arbitrage ETF (MNA) 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.

	MNA	ARB	Difference
Sharpe ratio Return per unit of total volatility	0.80	1.68	-0.89
Sortino ratio Return per unit of downside risk	1.19	2.74	-1.55
Omega ratio Gain probability vs. loss probability	1.14	1.34	-0.20
Calmar ratio Return relative to maximum drawdown	2.88	6.94	-4.06
Martin ratio Return relative to average drawdown	7.28	20.45	-13.16
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MNA vs. ARB - Sharpe Ratio Comparison

The current MNA Sharpe Ratio is 0.80, which is lower than the ARB Sharpe Ratio of 1.68. The chart below compares the historical Sharpe Ratios of MNA 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

	MNA	ARB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.80	1.68	-0.89
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.40	0.89	-0.49
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.41	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.36	0.95	-0.59

Drawdowns

MNA vs. ARB - Drawdown Comparison

The maximum MNA drawdown since its inception was -16.68%, which is greater than ARB's maximum drawdown of -5.60%. Use the drawdown chart below to compare losses from any high point for MNA and ARB.

Drawdown Indicators

	MNA	ARB	Difference
Max Drawdown Largest peak-to-trough decline	-16.68%	-5.60%	-11.08%
Max Drawdown (1Y) Largest decline over 1 year	-1.40%	-0.69%	-0.71%
Max Drawdown (3Y) Largest decline over 3 years	-3.01%	-2.13%	-0.88%
Max Drawdown (5Y) Largest decline over 5 years	-10.45%	-5.60%	-4.85%
Max Drawdown (10Y) Largest decline over 10 years	-16.68%	—	—
Current Drawdown Current decline from peak	-0.89%	-0.52%	-0.37%
Average Drawdown Average peak-to-trough decline	-2.83%	-0.94%	-1.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.55%	0.23%	+0.32%

Volatility

MNA vs. ARB - Volatility Comparison

IQ Merger Arbitrage ETF (MNA) has a higher volatility of 1.85% compared to AltShares Merger Arbitrage ETF (ARB) at 1.30%. This indicates that MNA'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

	MNA	ARB	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.85%	1.30%	+0.55%
Volatility (6M) Calculated over the trailing 6-month period	3.56%	2.38%	+1.18%
Volatility (1Y) Calculated over the trailing 1-year period	4.74%	2.89%	+1.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.00%	4.40%	+0.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.55%	4.40%	+2.15%

MNA vs. ARB - Expense Ratio Comparison

MNA has a 0.77% expense ratio, which is lower than ARB's 0.87% expense ratio.

Dividends

MNA vs. ARB - Dividend Comparison

MNA has not paid dividends to shareholders, while ARB's dividend yield for the trailing twelve months is around 0.43%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARB AltShares Merger Arbitrage ETF	0.43%	0.43%	1.12%	0.00%	4.18%	0.00%	2.87%	0.00%	0.00%	0.00%	0.00%	0.00%
MNA IQ Merger Arbitrage ETF	0.00%	0.00%	0.00%	1.20%	0.00%	0.00%	2.30%	0.00%	0.00%	0.00%	0.21%	0.87%

Frequently Asked Questions

Can I hold both MNA and ARB in my portfolio?

MNA and ARB have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MNA or ARB?

MNA has higher volatility (1.85%) compared to ARB (1.30%). In terms of maximum drawdown, MNA dropped -16.68% vs ARB's -5.60%.

Which ETF is better, MNA or ARB?

On 5-year performance, ARB leads with 3.89% vs 1.96% for MNA. On fees, MNA is cheaper at 0.77% per year. On volatility, ARB has been the lower-risk option at 1.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MNA or ARB?

Over the 5-year period, ARB has performed better with a 3.89% return vs 1.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MNA or ARB?

MNA is cheaper with a 0.77% expense ratio, compared with 0.87% for ARB.

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

ARB has the higher dividend yield at 0.43%, compared with 0.00% for MNA.

What is the main difference between MNA and ARB?

MNA tracks IQ Merger Arbitrage Index, while ARB tracks Water Island Merger Arbitrage USD Hedged Index. They also come from different issuers: New York Life and Water Island Capital Partners LP. Their fees differ too: 0.77% for MNA and 0.87% for ARB.

Which has better risk-adjusted returns?

ARB currently has the higher Sharpe Ratio (1.68 vs 0.80), 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.