ARB vs VTI
AltShares Merger Arbitrage ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | ARB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.76% | 0.03% | |
| AUM | $104M | $666.9B | |
| Dividend Yield | 0.42% | 1.07% | |
| Holdings | 95 | 3,543 | |
| YTD Return | +2.69% | +14.82% | |
| 1Y Return | +3.43% | +22.43% | |
| 3Y Return (annualized) | +5.50% | +21.93% | |
| 5Y Return (annualized) | +4.24% | +12.34% | |
| Volatility (annualized) | 3.1% | 15.4% | |
| Max Drawdown | -5.6% | -56.6% | |
| Fund Family | AltShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | May 7, 2020 | May 24, 2001 |
ARB vs VTI Performance
AltShares Merger Arbitrage ETF (ARB) is a ETF from AltShares and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year ARB returned +3.43% while VTI returned +22.43%. Year to date, ARB is up 2.69% versus a gain of 14.82% for VTI.
Over three years, ARB compounded at +5.50% per year against +21.93% for VTI; over five years the annualized figures are +4.24% and +12.34% respectively. Across the full 6-year window we track, VTI has the edge at +8.16% annualized vs +4.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -56.6% for VTI. 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
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 1.07% for VTI.
Holdings Overlap
ARB and VTI share 45 holdings out of 2826 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $73 per year of difference.
Which performed better, ARB or VTI?
Over the past year ARB returned +3.43% vs +22.43% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (6 years), ARB annualized +4.14% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, ARB or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 3.1% for ARB. Worst drawdown: ARB -5.6% vs VTI -56.6%.
Should I hold both ARB and VTI?
ARB and VTI have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ARB and VTI?
ARB and VTI share 45 common holdings with a 0.4% weight overlap. Combined, they hold 2826 unique securities.
Which pays a higher dividend, ARB or VTI?
ARB yields 0.42% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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