ARB vs SPY
AltShares Merger Arbitrage ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, ARB or SPY?
Market Neutral Strategy against Large Cap Blend.
SPY has a lower expense ratio. SPY 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 | SPY |
|---|---|---|
| Expense Ratio | 0.82% | 0.09%Best |
| AUM | $111M | $823.2B |
| Dividend Yield | 0.42% | 0.99% |
| Holdings | 100 | 1,515 |
| YTD Return | +3.65% | +13.53%Best |
| 1Y Return | +3.96% | +17.47%Best |
| 3Y Return (annualized) | +5.16% | +22.36%Best |
| 5Y Return (annualized) | +4.14% | +13.21%Best |
| Volatility (annualized) | 3.0%Best | 15.3% |
| Max Drawdown | -5.6%Best | -24.5% |
| $10,000 over 5 years | $12,249 | $18,596Best |
| Fund Family | AltShares | State Street Investment Management |
| Category | Alternative | Equity |
| Style | Market Neutral Strategy | Large Cap Blend |
| Inception | May 7, 2020 | Jan 22, 1993 |
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 14, 2026 (6.4 years).
ARB vs SPY 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 SPY Performance
AltShares Merger Arbitrage ETF (ARB) is an ETF from AltShares and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year ARB returned +3.96% while SPY returned +17.47%. Year to date, ARB is up 3.65% versus a gain of 13.53% for SPY.
Over three years, ARB compounded at +5.16% per year against +22.36% for SPY; over five years the annualized figures are +4.14% and +13.21% respectively. Across the full 6-year window we track, SPY has the edge at +17.91% annualized vs +4.18%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -24.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.29. They move largely independently of each other.
Fees and Cost Over Time
ARB charges 0.82% per year while SPY charges 0.09%. On a $10,000 position that is $82 vs $9 annually, a gap of $73 per year that compounds over a long holding period. On income, ARB currently yields 0.42% against 0.99% for SPY.
Holdings Overlap
At least 4.7% of SPY'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.
SPY and ARB share little of their money.
14 positions in common, counted across the 88 positions we hold weights for in ARB and 504 in SPY, against full books of 100 and 1,515.
Top Shared Holdings
| Stock | Weight in ARB | Weight in SPY | Difference |
|---|---|---|---|
| WBDWarner Bros. Discovery, Inc | 4.93% | 0.11% | 4.82% |
| AESA E S Corporation, The | 3.33% | 0.02% | 3.31% |
| TECHBio Techne | 3.33% | 0.02% | 3.31% |
| DDominion Energy Inc. | 1.86% | 0.09% | 1.77% |
| AMZNAmazon.Com Inc | -1.89% | 3.78% | 5.67% |
| KVUEKenvue Inc | 1.16% | 0.05% | 1.11% |
| HOLXHologic Inc Sedol 2433530 | 0.00% | 0.00% | 0.00% |
| BSXBoston Scientific Corp. | -0.46% | 0.10% | 0.56% |
| KMBKimberly-Clark Corp. | -0.93% | 0.05% | 0.98% |
| FOXAFox Corp. Class A | -1.15% | 0.02% | 1.17% |
You are not choosing between two funds in isolation.
Whichever of ARB and SPY 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 SPY?
ARB has an expense ratio of 0.82% while SPY charges 0.09%. SPY is the cheaper option, by $73 a year on a $10,000 investment.
Which performed better, ARB or SPY?
Over the past year ARB returned +3.96% vs +17.47% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), ARB annualized +4.18% vs +17.91% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ARB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 3.0% for ARB. Worst drawdown: ARB -5.6% vs SPY -24.5%.
Should I hold both ARB and SPY?
ARB and SPY have a monthly-return correlation of 0.29, 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 SPY?
At least 4.7% of SPY's money is in holdings ARB also owns. Our book for ARB is partial, so the real figure is this or higher. They hold 14 positions in common, counted across the 88 positions we hold weights for in ARB and 504 in SPY.
Which pays a higher dividend, ARB or SPY?
ARB yields 0.42% while SPY yields 0.99%, so SPY currently pays the higher dividend yield.
Is SPY better than ARB?
SPY has a lower expense ratio. SPY 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.