ARB vs SCHD
AltShares Merger Arbitrage ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | ARB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.76% | 0.06% | |
| AUM | $104M | $108.7B | |
| Dividend Yield | 0.42% | 3.13% | |
| Holdings | 95 | 104 | |
| YTD Return | +2.69% | +26.54% | |
| 1Y Return | +3.43% | +30.90% | |
| 3Y Return (annualized) | +5.50% | +16.29% | |
| 5Y Return (annualized) | +4.24% | +9.65% | |
| Volatility (annualized) | 3.1% | 13.6% | |
| Max Drawdown | -5.6% | -33.4% | |
| Fund Family | AltShares | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | May 7, 2020 | Oct 20, 2011 |
ARB vs SCHD Performance
AltShares Merger Arbitrage ETF (ARB) is a ETF from AltShares and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year ARB returned +3.43% while SCHD returned +30.90%. Year to date, ARB is up 2.69% versus a gain of 26.54% for SCHD.
Over three years, ARB compounded at +5.50% per year against +16.29% for SCHD; over five years the annualized figures are +4.24% and +9.65% respectively. Across the full 6-year window we track, SCHD has the edge at +11.51% annualized vs +4.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% 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 -33.4% for SCHD. 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ARB charges 0.76% per year while SCHD charges 0.06%. On a $10,000 position that is $76 vs $6 annually, a gap of $70 per year that compounds over a long holding period. On income, ARB currently yields 0.42% against 3.13% for SCHD.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, ARB or SCHD?
ARB has an expense ratio of 0.76% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, ARB or SCHD?
Over the past year ARB returned +3.43% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), ARB annualized +4.14% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, ARB or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 3.1% for ARB. Worst drawdown: ARB -5.6% vs SCHD -33.4%.
Should I hold both ARB and SCHD?
ARB and SCHD have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ARB and SCHD?
ARB and SCHD share 2 common holdings with a 0.0% weight overlap. Combined, they hold 182 unique securities.
Which pays a higher dividend, ARB or SCHD?
ARB yields 0.42% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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