ARB vs VYM
AltShares Merger Arbitrage ETF vs Vanguard High Dividend Yield ETF
Which is better, ARB or VYM?
Market Neutral Strategy against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 28.6%.
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 | VYM |
|---|---|---|
| Expense Ratio | 0.76% | 0.04%Best |
| AUM | $102M | $81.6B |
| Dividend Yield | 0.42% | 2.24% |
| Holdings | 95 | 613 |
| YTD Return | +2.72% | +14.33%Best |
| 1Y Return | +3.19% | +20.01%Best |
| 3Y Return (annualized) | +4.99% | +18.43%Best |
| 5Y Return (annualized) | +4.07% | +12.16%Best |
| Volatility (annualized) | 3.0%Best | 13.7% |
| Max Drawdown | -5.6%Best | -15.8% |
| $10,000 over 5 years | $12,208 | $17,750Best |
| Top 10 Weight | 28.6% | 25.9%Best |
| Fund Family | AltShares | Vanguard (US) |
| Category | Alternative | Equity |
| Style | Market Neutral Strategy | Large Cap Value |
| Inception | May 7, 2020 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: May 7, 2020 to Sep 8, 2026 (6.3 years).
ARB vs VYM 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 VYM Performance
AltShares Merger Arbitrage ETF (ARB) is an ETF from AltShares and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year ARB returned +3.19% while VYM returned +20.01%. Year to date, ARB is up 2.72% versus a gain of 14.33% for VYM.
Over three years, ARB compounded at +4.99% per year against +18.43% for VYM; over five years the annualized figures are +4.07% and +12.16% respectively. Across the full 6-year window we track, VYM has the edge at +15.83% annualized vs +4.10%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.7% 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 -15.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.36. They move together some of the time, and apart the rest.
Fees and Cost Over Time
ARB charges 0.76% per year while VYM charges 0.04%. On a $10,000 position that is $76 vs $4 annually, a gap of $72 per year that compounds over a long holding period. On income, ARB currently yields 0.42% against 2.24% for VYM.
Holdings Overlap
17.3% of ARB's money is in holdings VYM also owns. 2.6% of VYM's money is in holdings ARB also owns.
ARB and VYM share little of their money.
18 positions in common, counted across the 84 positions we hold weights for in ARB and 602 in VYM, against full books of 95 and 613.
What only one of them owns
Our book lists 551 positions for VYM that do not appear in our book for ARB (94.6% of the fund), and 35 for ARB that do not appear in VYM (58.1%).
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 VYM | Difference |
|---|---|---|---|
| NSCNorfolk Southern Corp. | 2.99% | 0.29% | 2.70% |
| WBSWebster Financial Corp Preferred Stock | 2.90% | 0.05% | 2.85% |
| AESAes Corporation | 2.25% | 0.04% | 2.21% |
| OGNOrganon & Co Ordinary Shares | 2.20% | 0.01% | 2.19% |
| DDominion Energy Inc. | 1.87% | 0.25% | 1.62% |
| IRDMIridium Communications Inc | 2.09% | 0.02% | 2.07% |
| KVUEKenvue Inc | 0.95% | 0.15% | 0.80% |
| EQHEquitable Holdings Inc. | 0.95% | 0.05% | 0.90% |
| NWENorthwestern Corp | 0.95% | 0.02% | 0.93% |
| LCIILci Inds Com | 0.10% | 0.01% | 0.09% |
You are not choosing between two funds in isolation.
Whichever of ARB and VYM 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 VYM?
ARB has an expense ratio of 0.76% while VYM charges 0.04%. VYM is the cheaper option, by $72 a year on a $10,000 investment.
Which performed better, ARB or VYM?
Over the past year ARB returned +3.19% vs +20.01% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), ARB annualized +4.10% vs +15.83% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ARB or VYM?
VYM has been the more volatile fund at 13.7% annualized versus 3.0% for ARB. Worst drawdown: ARB -5.6% vs VYM -15.8%.
Should I hold both ARB and VYM?
ARB and VYM have a monthly-return correlation of 0.36, 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 VYM?
17.3% of ARB's money is in holdings VYM also owns. 2.6% of VYM's is in holdings ARB also owns. They hold 18 positions in common, counted across the 84 positions we hold weights for in ARB and 602 in VYM.
Which pays a higher dividend, ARB or VYM?
ARB yields 0.42% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Is VYM better than ARB?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 28.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.