ARB vs SCHD
AltShares Merger Arbitrage ETF vs Schwab US Dividend Equity ETF
Which is better, ARB or SCHD?
Market Neutral Strategy against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. ARB is less concentrated, with 28.6% of the fund in its ten largest positions against 41.5%.
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 | SCHD |
|---|---|---|
| Expense Ratio | 0.76% | 0.06%Best |
| AUM | $102M | $112.2B |
| Dividend Yield | 0.42% | 3.13% |
| Holdings | 95 | 103 |
| YTD Return | +2.83% | +27.56%Best |
| 1Y Return | +3.52% | +30.29%Best |
| 3Y Return (annualized) | +5.11% | +16.37%Best |
| 5Y Return (annualized) | +4.10% | +10.23%Best |
| Volatility (annualized) | 3.0%Best | 15.0% |
| Max Drawdown | -5.6%Best | -16.9% |
| $10,000 over 5 years | $12,225 | $16,274Best |
| Top 10 Weight | 28.6%Best | 41.5% |
| Fund Family | AltShares | Charles Schwab Asset Management |
| Category | Alternative | Equity |
| Style | Market Neutral Strategy | Large Cap Value |
| Inception | May 7, 2020 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: May 7, 2020 to Sep 4, 2026 (6.3 years).
ARB vs SCHD 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 6.3 years both funds cover.
ARB vs SCHD Performance
AltShares Merger Arbitrage ETF (ARB) is an ETF from AltShares and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year ARB returned +3.52% while SCHD returned +30.29%. Year to date, ARB is up 2.83% versus a gain of 27.56% for SCHD.
Over three years, ARB compounded at +5.11% per year against +16.37% for SCHD; over five years the annualized figures are +4.10% and +10.23% respectively. Across the full 6-year window we track, SCHD has the edge at +15.94% annualized vs +4.13%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 15.0% 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 -16.9% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.34. They move together some of the time, and apart the rest.
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
1.2% of SCHD's money is in holdings ARB also owns.
SCHD and ARB share little of their money.
2 positions in common, counted across the 84 positions we hold weights for in ARB and 100 in SCHD, against full books of 95 and 103.
What only one of them owns
Our book lists 97 positions for SCHD that do not appear in our book for ARB (98.7% of the fund), and 45 for ARB that do not appear in SCHD (75.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of ARB and SCHD 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 SCHD?
ARB has an expense ratio of 0.76% while SCHD charges 0.06%. SCHD is the cheaper option, by $70 a year on a $10,000 investment.
Which performed better, ARB or SCHD?
Over the past year ARB returned +3.52% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), ARB annualized +4.13% vs +15.94% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ARB or SCHD?
SCHD has been the more volatile fund at 15.0% annualized versus 3.0% for ARB. Worst drawdown: ARB -5.6% vs SCHD -16.9%.
Should I hold both ARB and SCHD?
ARB and SCHD have a monthly-return correlation of 0.34, 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 SCHD?
1.2% of SCHD's money is in holdings ARB also owns. 1.2% of SCHD's is in holdings ARB also owns. They hold 2 positions in common, counted across the 84 positions we hold weights for in ARB and 100 in SCHD.
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.
Is SCHD better than ARB?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. ARB is less concentrated, with 28.6% of the fund in its ten largest positions against 41.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.