ARB vs VTI
AltShares Merger Arbitrage ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, ARB or VTI?
Market Neutral Strategy against Large Cap Blend.
VTI has a lower expense ratio. VTI 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 33.3%.
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 | VTI |
|---|---|---|
| Expense Ratio | 0.76% | 0.03%Best |
| AUM | $103M | $666.9B |
| Dividend Yield | 0.42% | 1.03% |
| Holdings | 95 | 3,543 |
| YTD Return | +3.46% | +11.95%Best |
| 1Y Return | +4.01% | +15.05%Best |
| 3Y Return (annualized) | +5.09% | +22.32%Best |
| 5Y Return (annualized) | +4.26% | +12.50%Best |
| Volatility (annualized) | 3.0%Best | 15.6% |
| Max Drawdown | -5.6%Best | -25.4% |
| $10,000 over 5 years | $12,319 | $18,020Best |
| Top 10 Weight | 28.6%Best | 33.3% |
| Fund Family | AltShares | Vanguard (US) |
| Category | Alternative | Equity |
| Style | Market Neutral Strategy | Large Cap Blend |
| Inception | May 7, 2020 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: May 7, 2020 to Sep 25, 2026 (6.4 years).
ARB vs VTI 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 VTI Performance
AltShares Merger Arbitrage ETF (ARB) is an ETF from AltShares and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year ARB returned +4.01% while VTI returned +15.05%. Year to date, ARB is up 3.46% versus a gain of 11.95% for VTI.
Over three years, ARB compounded at +5.09% per year against +22.32% for VTI; over five years the annualized figures are +4.26% and +12.50% respectively. Across the full 6-year window we track, VTI has the edge at +17.71% annualized vs +4.19%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.6% 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 -25.4% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.30. They move together some of the time, and apart the rest.
Fees and Cost Over Time
ARB charges 0.76% per year while VTI 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 1.03% for VTI.
Holdings Overlap
65.8% of ARB's money is in holdings VTI also owns. 5.2% of VTI's money is in holdings ARB also owns.
The two portfolios partly overlap.
54 positions in common, counted across the 84 positions we hold weights for in ARB and 3,463 in VTI, against full books of 95 and 3,543.
What only one of them owns
Our book lists 1,114 positions for VTI that do not appear in our book for ARB (92.2% of the fund), and 5 for ARB that do not appear in VTI (6.7%).
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.
Top Shared Holdings
| Stock | Weight in ARB | Weight in VTI | Difference |
|---|---|---|---|
| WBDWarner Bros. Discovery, Inc | 3.41% | 0.09% | 3.32% |
| NSCNorfolk Southern Corp | 2.99% | 0.10% | 2.89% |
| EAElectronic Arts, Inc. | 2.90% | 0.07% | 2.83% |
| PENPenumbra Inc. [pen] | 2.91% | 0.02% | 2.89% |
| TECHBio-Techne Corp | 2.89% | 0.02% | 2.87% |
| CZRCaesars Entertainment Corp. | 2.87% | 0.01% | 2.86% |
| CRNXCrinetics Pharmaceuticals Inc Com | 2.79% | 0.01% | 2.78% |
| AMZNAmazon.Com Inc | -1.27% | 3.65% | 4.92% |
| GSATGlobalstar, Inc. | 2.25% | 0.01% | 2.24% |
| AESAes Corporation | 2.25% | 0.01% | 2.24% |
65.8% of ARB is already inside VTI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, ARB or VTI?
ARB has an expense ratio of 0.76% while VTI charges 0.03%. VTI is the cheaper option, by $73 a year on a $10,000 investment.
Which performed better, ARB or VTI?
Over the past year ARB returned +4.01% vs +15.05% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (6 years), ARB annualized +4.19% vs +17.71% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ARB or VTI?
VTI has been the more volatile fund at 15.6% annualized versus 3.0% for ARB. Worst drawdown: ARB -5.6% vs VTI -25.4%.
Should I hold both ARB and VTI?
ARB and VTI have a monthly-return correlation of 0.30, 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 VTI?
65.8% of ARB's money is in holdings VTI also owns. 5.2% of VTI's is in holdings ARB also owns. They hold 54 positions in common, counted across the 84 positions we hold weights for in ARB and 3,463 in VTI.
Which pays a higher dividend, ARB or VTI?
ARB yields 0.42% while VTI yields 1.03%, so VTI currently pays the higher dividend yield.
Is VTI better than ARB?
VTI has a lower expense ratio. VTI 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 33.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.