ARB vs QQQ
AltShares Merger Arbitrage ETF vs Invesco QQQ Trust, Series 1
Which is better, ARB or QQQ?
Market Neutral Strategy against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | ARB | QQQ |
|---|---|---|
| Expense Ratio | 0.82% | 0.18%Best |
| AUM | $111M | $506.1B |
| Dividend Yield | 0.42% | 0.42% |
| Holdings | 100 | 321 |
| YTD Return | +3.77% | +19.14%Best |
| 1Y Return | +4.26% | +21.45%Best |
| 3Y Return (annualized) | +5.19% | +26.10%Best |
| 5Y Return (annualized) | +4.19% | +15.25%Best |
| Volatility (annualized) | 3.0%Best | 20.2% |
| Max Drawdown | -5.6%Best | -35.1% |
| $10,000 over 5 years | $12,278 | $20,333Best |
| Fund Family | AltShares | Invesco (US) |
| Category | Alternative | Equity |
| Style | Market Neutral Strategy | Large Cap Growth |
| Inception | May 7, 2020 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: May 7, 2020 to Oct 15, 2026 (6.4 years).
ARB vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.4 years both funds cover.
ARB vs QQQ Performance
AltShares Merger Arbitrage ETF (ARB) is an ETF from AltShares and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year ARB returned +4.26% while QQQ returned +21.45%. Year to date, ARB is up 3.77% versus a gain of 19.14% for QQQ.
Over three years, ARB compounded at +5.19% per year against +26.10% for QQQ; over five years the annualized figures are +4.19% and +15.25% respectively. Across the full 6-year window we track, QQQ has the edge at +20.89% annualized vs +4.20%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.2% compared with 3.0% for ARB. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -5.6% for ARB and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.17. They move largely independently of each other.
Fees and Cost Over Time
ARB charges 0.82% per year while QQQ charges 0.18%. On a $10,000 position that is $82 vs $18 annually, a gap of $64 per year that compounds over a long holding period. On income, ARB currently yields 0.42% against 0.42% for QQQ.
Holdings Overlap
At least 4.9% of QQQ's money is in holdings ARB also owns.
Only one direction is shown: for ARB, our book for it lists positions totalling 150.2% of the fund, which is what a leveraged book looks like and is not a denominator we can divide by.
QQQ and ARB share little of their money.
4 positions in common, counted across the 88 positions we hold weights for in ARB and 101 in QQQ, against full books of 100 and 321.
You are not choosing between two funds in isolation.
Whichever of ARB and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, ARB or QQQ?
ARB has an expense ratio of 0.82% while QQQ charges 0.18%. QQQ is the cheaper option, by $64 a year on a $10,000 investment.
Which performed better, ARB or QQQ?
Over the past year ARB returned +4.26% vs +21.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), ARB annualized +4.20% vs +20.89% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ARB or QQQ?
QQQ has been the more volatile fund at 20.2% annualized versus 3.0% for ARB. Worst drawdown: ARB -5.6% vs QQQ -35.1%.
Should I hold both ARB and QQQ?
ARB and QQQ have a monthly-return correlation of 0.17, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between ARB and QQQ?
At least 4.9% of QQQ's money is in holdings ARB also owns. Our book for ARB is partial, so the real figure is this or higher. They hold 4 positions in common, counted across the 88 positions we hold weights for in ARB and 101 in QQQ.
Which pays a higher dividend, ARB or QQQ?
ARB yields 0.42% while QQQ yields 0.42%, so ARB currently pays the higher dividend yield.
Is QQQ better than ARB?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.