ARB vs IVV
AltShares Merger Arbitrage ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | ARB | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.76% | 0.03% | |
| AUM | $104M | $907.0B | |
| Dividend Yield | 0.42% | 1.10% | |
| Holdings | 95 | 508 | |
| YTD Return | +2.59% | +12.96% | |
| 1Y Return | +3.44% | +20.70% | |
| 3Y Return (annualized) | +5.40% | +22.10% | |
| 5Y Return (annualized) | +4.17% | +13.40% | |
| Volatility (annualized) | 3.1% | 15.1% | |
| Max Drawdown | -5.6% | -56.5% | |
| Fund Family | AltShares | iShares by BlackRock (US) | |
| Category | Alternative | Equity | |
| Inception | May 7, 2020 | May 15, 2000 |
ARB vs IVV Performance
AltShares Merger Arbitrage ETF (ARB) is a ETF from AltShares and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year ARB returned +3.44% while IVV returned +20.70%. Year to date, ARB is up 2.59% versus a gain of 12.96% for IVV.
Over three years, ARB compounded at +5.40% per year against +22.10% for IVV; over five years the annualized figures are +4.17% and +13.40% respectively. Across the full 6-year window we track, IVV has the edge at +7.01% annualized vs +4.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 3.1% 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 -56.5% for IVV. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ARB charges 0.76% per year while IVV charges 0.03%. On a $10,000 position that is $76 vs $3 annually, a gap of $73 per year that compounds over a long holding period. On income, ARB currently yields 0.42% against 1.10% for IVV.
Holdings Overlap
ARB and IVV share 18 holdings out of 571 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ARB or IVV?
ARB has an expense ratio of 0.76% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $73 per year of difference.
Which performed better, ARB or IVV?
Over the past year ARB returned +3.44% vs +20.70% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (6 years), ARB annualized +4.12% vs +7.01% for IVV. Past performance does not guarantee future results.
Which is riskier, ARB or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 3.1% for ARB. Worst drawdown: ARB -5.6% vs IVV -56.5%.
Should I hold both ARB and IVV?
ARB and IVV have a monthly-return correlation of 0.29, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ARB and IVV?
ARB and IVV share 18 common holdings with a 0.5% weight overlap. Combined, they hold 571 unique securities.
Which pays a higher dividend, ARB or IVV?
ARB yields 0.42% while IVV yields 1.10%, so IVV currently pays the higher dividend yield.
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