VRP vs. ARCM
VRP (Invesco Variable Rate Preferred ETF) and ARCM (Arrow Reserve Capital Management ETF) are both exchange-traded funds - VRP is a Preferred Stock/Convertible Bonds fund tracking the Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index, while ARCM is a Ultrashort Bond fund actively managed by Arrow Funds. VRP is passively managed, while ARCM is actively managed. Over the past 5 years, VRP returned 4.38%/yr vs 3.16%/yr for ARCM. At a 0.07 correlation, their price movements are largely independent. Both charge a 0.50% expense ratio.
Performance
VRP vs. ARCM - Performance Comparison
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Returns By Period
In the year-to-date period, VRP achieves a 2.11% return, which is significantly higher than ARCM's 1.36% return.
VRP
- 1D
- -0.12%
- 1M
- 0.66%
- YTD
- 2.11%
- 6M
- 2.32%
- 1Y
- 6.96%
- 3Y*
- 9.76%
- 5Y*
- 4.38%
- 10Y*
- 5.23%
ARCM
- 1D
- 0.01%
- 1M
- 0.29%
- YTD
- 1.36%
- 6M
- 1.63%
- 1Y
- 3.72%
- 3Y*
- 4.62%
- 5Y*
- 3.16%
- 10Y*
- —
VRP vs. ARCM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VRP Invesco Variable Rate Preferred ETF | 2.11% | 7.34% | 11.10% | 10.35% | -9.00% | 4.20% | 5.11% | 18.84% | -6.62% | 4.34% |
ARCM Arrow Reserve Capital Management ETF | 1.36% | 4.11% | 5.24% | 4.72% | 0.69% | -0.26% | 0.95% | 2.70% | 1.33% | 0.82% |
Correlation
The correlation between VRP and ARCM is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.25 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.17 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.12 |
Correlation (All Time) Calculated using the full available price history since Apr 3, 2017 | 0.07 |
The correlation between VRP and ARCM shifts across timeframes, from 0.07 (all time) to 0.25 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VRP vs. ARCM — Risk / Return Rank
VRP
ARCM
VRP vs. ARCM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Variable Rate Preferred ETF (VRP) and Arrow Reserve Capital Management ETF (ARCM). 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.
| VRP | ARCM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -6.02 | ||
| Sortino ratioReturn per unit of downside risk | -14.23 | ||
| Omega ratioGain probability vs. loss probability | 1.53 | 4.50 | -2.97 |
| Calmar ratioReturn relative to maximum drawdown | 2.42 | 29.94 | -27.52 |
| Martin ratioReturn relative to average drawdown | 13.02 | 243.82 | -230.80 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VRP | ARCM | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.42 | 8.44 | -6.02 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.67 | 1.05 | -0.38 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.36 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.38 | 0.75 | -0.37 |
Drawdowns
VRP vs. ARCM - Drawdown Comparison
The maximum VRP drawdown since its inception was -46.04%, which is greater than ARCM's maximum drawdown of -4.08%. Use the drawdown chart below to compare losses from any high point for VRP and ARCM.
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Drawdown Indicators
| VRP | ARCM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -46.04% | -4.08% | -41.96% |
Max Drawdown (1Y)Largest decline over 1 year | -2.89% | -0.12% | -2.77% |
Max Drawdown (3Y)Largest decline over 3 years | -4.26% | -3.46% | -0.80% |
Max Drawdown (5Y)Largest decline over 5 years | -13.76% | -3.46% | -10.30% |
Max Drawdown (10Y)Largest decline over 10 years | -46.04% | — | — |
Current DrawdownCurrent decline from peak | -0.12% | 0.00% | -0.12% |
Average DrawdownAverage peak-to-trough decline | -2.31% | -0.73% | -1.58% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.54% | 0.02% | +0.52% |
Volatility
VRP vs. ARCM - Volatility Comparison
Invesco Variable Rate Preferred ETF (VRP) has a higher volatility of 0.66% compared to Arrow Reserve Capital Management ETF (ARCM) at 0.10%. This indicates that VRP's price experiences larger fluctuations and is considered to be riskier than ARCM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VRP | ARCM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.66% | 0.10% | +0.56% |
Volatility (6M)Calculated over the trailing 6-month period | 2.33% | 0.32% | +2.01% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.88% | 0.44% | +2.44% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.55% | 3.02% | +3.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.53% | 3.13% | +11.40% |
VRP vs. ARCM - Expense Ratio Comparison
Both VRP and ARCM have an expense ratio of 0.50%.
Dividends
VRP vs. ARCM - Dividend Comparison
VRP's dividend yield for the trailing twelve months is around 6.30%, more than ARCM's 3.73% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARCM Arrow Reserve Capital Management ETF | 3.73% | 4.13% | 4.87% | 4.26% | 0.90% | 0.02% | 0.84% | 2.32% | 1.91% | 0.62% | 0.00% | 0.00% |
VRP Invesco Variable Rate Preferred ETF | 6.30% | 6.53% | 5.78% | 6.61% | 5.38% | 4.25% | 4.17% | 4.71% | 5.28% | 4.69% | 5.10% | 5.02% |
Frequently Asked Questions
VRP and ARCM have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VRP has higher volatility (0.66%) compared to ARCM (0.10%). In terms of maximum drawdown, VRP dropped -46.04% vs ARCM's -4.08%.
On 5-year performance, VRP leads with 4.38% vs 3.16% for ARCM. Both ETFs have the same 0.50% expense ratio. On volatility, ARCM has been the lower-risk option at 0.10%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VRP has performed better with a 4.38% return vs 3.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VRP and ARCM have the same expense ratio: 0.50% per year.
VRP has the higher dividend yield at 6.30%, compared with 3.73% for ARCM.
VRP is categorized as Preferred Stock/Convertible Bonds, while ARCM is Ultrashort Bond. They also come from different issuers: Invesco and Arrow Funds.
ARCM currently has the higher Sharpe Ratio (8.44 vs 2.42), 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.
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