ROMO vs. ARB

Last updated Jun 4, 2026

ROMO (Strategy Shares Newfound/ReSolve Robust Momentum ETF) and ARB (AltShares Merger Arbitrage ETF) are both exchange-traded funds - ROMO is a Momentum fund tracking the Newfound/ReSolve Robust Equity Momentum Index, while ARB is a Hedge Fund fund tracking the Water Island Merger Arbitrage USD Hedged Index. Both are passively managed. Over the past 5 years, ROMO returned 6.78%/yr vs 3.87%/yr for ARB. At a 0.30 correlation, their price movements are largely independent. ROMO charges 0.82%/yr vs 0.87%/yr for ARB.

Performance

ROMO vs. ARB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Strategy Shares Newfound/ReSolve Robust Momentum ETF (ROMO) 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, ROMO achieves a 6.33% return, which is significantly higher than ARB's 1.70% return.

ROMO

• 1D: -0.69%
• 1M: 3.99%
• YTD: 6.33%
• 6M: 7.08%
• 1Y: 17.53%
• 3Y*: 14.45%
• 5Y*: 6.78%
• 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)

ROMO vs. ARB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
ROMO Strategy Shares Newfound/ReSolve Robust Momentum ETF	6.33%	9.29%	20.68%	11.05%	-18.88%	21.41%	16.95%
ARB AltShares Merger Arbitrage ETF	1.70%	6.05%	4.07%	3.85%	2.67%	3.16%	3.78%

Correlation

The correlation between ROMO and ARB is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.34
Correlation (3Y) Calculated over the trailing 3-year period	0.30
Correlation (5Y) Calculated over the trailing 5-year period	0.29
Correlation (All Time) Calculated using the full available price history since May 8, 2020	0.30

ROMO vs. ARB - Sectors Allocation Comparison

Sectors	ROMO	ARB
Financial Services	22.0%	21.4%
Industrials	19.4%	11.9%
Technology	12.5%	16.3%
Healthcare	9.6%	17.4%
Consumer Cyclical	8.4%	5.6%
Consumer Defensive	6.3%	6.2%
Basic Materials	6.2%	5.3%
Communication Services	5.0%	9.9%
Energy	3.9%	0.6%
Utilities	3.6%	3.1%
Real Estate	3.0%	3.1%

Return for Risk

ROMO vs. ARB — Risk / Return Rank

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

ROMO

ROMO Risk / Return Rank: 35
ROMO Sharpe Ratio Rank: 36
ROMO Sortino Ratio Rank: 36
ROMO Omega Ratio Rank: 36
ROMO Calmar Ratio Rank: 32
ROMO Martin Ratio Rank: 37

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.

ROMO vs. ARB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Strategy Shares Newfound/ReSolve Robust Momentum ETF (ROMO) 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.

	ROMO	ARB	Difference
Sharpe ratio Return per unit of total volatility	1.30	1.70	-0.40
Sortino ratio Return per unit of downside risk	1.86	2.77	-0.91
Omega ratio Gain probability vs. loss probability	1.24	1.35	-0.10
Calmar ratio Return relative to maximum drawdown	1.58	7.17	-5.59
Martin ratio Return relative to average drawdown	5.70	20.90	-15.19
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ROMO vs. ARB - Sharpe Ratio Comparison

The current ROMO Sharpe Ratio is 1.30, which is comparable to the ARB Sharpe Ratio of 1.70. The chart below compares the historical Sharpe Ratios of ROMO 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

	ROMO	ARB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.30	1.70	-0.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.57	0.88	-0.32
Sharpe Ratio (All Time) Calculated using the full available price history	0.48	0.95	-0.48

Drawdowns

ROMO vs. ARB - Drawdown Comparison

The maximum ROMO drawdown since its inception was -28.66%, which is greater than ARB's maximum drawdown of -5.60%. Use the drawdown chart below to compare losses from any high point for ROMO and ARB.

Drawdown Indicators

	ROMO	ARB	Difference
Max Drawdown Largest peak-to-trough decline	-28.66%	-5.60%	-23.06%
Max Drawdown (1Y) Largest decline over 1 year	-11.16%	-0.69%	-10.47%
Max Drawdown (3Y) Largest decline over 3 years	-14.09%	-2.13%	-11.96%
Max Drawdown (5Y) Largest decline over 5 years	-20.26%	-5.60%	-14.66%
Current Drawdown Current decline from peak	-1.62%	-0.49%	-1.13%
Average Drawdown Average peak-to-trough decline	-8.31%	-0.94%	-7.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.08%	0.24%	+2.84%

Volatility

ROMO vs. ARB - Volatility Comparison

Strategy Shares Newfound/ReSolve Robust Momentum ETF (ROMO) has a higher volatility of 4.12% compared to AltShares Merger Arbitrage ETF (ARB) at 1.28%. This indicates that ROMO'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

	ROMO	ARB	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.12%	1.28%	+2.84%
Volatility (6M) Calculated over the trailing 6-month period	11.11%	2.38%	+8.73%
Volatility (1Y) Calculated over the trailing 1-year period	13.58%	2.89%	+10.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.03%	4.40%	+7.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.45%	4.40%	+10.05%

ROMO vs. ARB - Expense Ratio Comparison

ROMO has a 0.82% expense ratio, which is lower than ARB's 0.87% expense ratio.

Dividends

ROMO vs. ARB - Dividend Comparison

ROMO's dividend yield for the trailing twelve months is around 8.34%, more than ARB's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
ARB AltShares Merger Arbitrage ETF	0.43%	0.43%	1.12%	0.00%	4.18%	0.00%	2.87%	0.00%
ROMO Strategy Shares Newfound/ReSolve Robust Momentum ETF	8.34%	8.87%	0.76%	2.42%	0.77%	0.56%	0.97%	0.58%

Frequently Asked Questions

Can I hold both ROMO and ARB in my portfolio?

ROMO and ARB have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ROMO or ARB?

ROMO has higher volatility (4.12%) compared to ARB (1.28%). In terms of maximum drawdown, ROMO dropped -28.66% vs ARB's -5.60%.

Which ETF is better, ROMO or ARB?

On 5-year performance, ROMO leads with 6.78% vs 3.87% for ARB. On fees, ROMO is cheaper at 0.82% 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, ROMO or ARB?

Over the 5-year period, ROMO has performed better with a 6.78% return vs 3.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ROMO or ARB?

ROMO is cheaper with a 0.82% expense ratio, compared with 0.87% for ARB.

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

ROMO has the higher dividend yield at 8.34%, compared with 0.43% for ARB.

What is the main difference between ROMO and ARB?

ROMO is categorized as Momentum, while ARB is Hedge Fund. ROMO tracks Newfound/ReSolve Robust Equity Momentum Index, while ARB tracks Water Island Merger Arbitrage USD Hedged Index. They also come from different issuers: Rational Capital LLC and Water Island Capital Partners LP. Their fees differ too: 0.82% for ROMO and 0.87% for ARB.

Which has better risk-adjusted returns?

ARB currently has the higher Sharpe Ratio (1.70 vs 1.30), 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.