ARB vs VOO
AltShares Merger Arbitrage ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | ARB | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.76% | 0.03% | |
| AUM | $104M | $997.4B | |
| Dividend Yield | 0.42% | 1.08% | |
| Holdings | 95 | 509 | |
| YTD Return | +2.59% | +12.95% | |
| 1Y Return | +3.44% | +20.69% | |
| 3Y Return (annualized) | +5.40% | +22.09% | |
| 5Y Return (annualized) | +4.17% | +13.40% | |
| Volatility (annualized) | 3.1% | 14.1% | |
| Max Drawdown | -5.6% | -34.3% | |
| Fund Family | AltShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | May 7, 2020 | Sep 7, 2010 |
ARB vs VOO Performance
AltShares Merger Arbitrage ETF (ARB) is a ETF from AltShares and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year ARB returned +3.44% while VOO returned +20.69%. Year to date, ARB is up 2.59% versus a gain of 12.95% for VOO.
Over three years, ARB compounded at +5.40% per year against +22.09% for VOO; over five years the annualized figures are +4.17% and +13.40% respectively. Across the full 6-year window we track, VOO has the edge at +13.50% annualized vs +4.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -34.3% for VOO. 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 VOO 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 1.08% for VOO.
Holdings Overlap
ARB and VOO share 17 holdings out of 572 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 VOO?
ARB has an expense ratio of 0.76% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $73 per year of difference.
Which performed better, ARB or VOO?
Over the past year ARB returned +3.44% vs +20.69% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (6 years), ARB annualized +4.12% vs +13.50% for VOO. Past performance does not guarantee future results.
Which is riskier, ARB or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 3.1% for ARB. Worst drawdown: ARB -5.6% vs VOO -34.3%.
Should I hold both ARB and VOO?
ARB and VOO 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 VOO?
ARB and VOO share 17 common holdings with a 0.5% weight overlap. Combined, they hold 572 unique securities.
Which pays a higher dividend, ARB or VOO?
ARB yields 0.42% while VOO yields 1.08%, so VOO currently pays the higher dividend yield.
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