ARCM vs SPY
Arrow Reserve Capital Management ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | ARCM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.09% | |
| AUM | $51M | $821.1B | |
| Dividend Yield | 3.61% | 1.01% | |
| Holdings | 102 | 505 | |
| YTD Return | +0.86% | +13.17% | |
| 1Y Return | +2.35% | +21.53% | |
| 3Y Return (annualized) | +4.21% | +22.06% | |
| 5Y Return (annualized) | +3.08% | +13.35% | |
| Volatility (annualized) | 1.0% | 15.3% | |
| Max Drawdown | -4.8% | -56.5% | |
| Fund Family | Arrow Investment Trust | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 31, 2017 | Jan 22, 1993 |
ARCM vs SPY Performance
Arrow Reserve Capital Management ETF (ARCM) is a ETF from Arrow Investment Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year ARCM returned +2.35% while SPY returned +21.53%. Year to date, ARCM is up 0.86% versus a gain of 13.17% for SPY.
Over three years, ARCM compounded at +4.21% per year against +22.06% for SPY; over five years the annualized figures are +3.08% and +13.35% respectively. Across the full 9-year window we track, SPY has the edge at +8.82% annualized vs +1.65%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 1.0% for ARCM. 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 -4.8% for ARCM and -56.5% for SPY. 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
ARCM charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, ARCM currently yields 3.61% against 1.01% for SPY.
Holdings Overlap
ARCM and SPY share 0 holdings out of 593 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ARCM or SPY?
ARCM has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, ARCM or SPY?
Over the past year ARCM returned +2.35% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (9 years), ARCM annualized +1.65% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, ARCM or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 1.0% for ARCM. Worst drawdown: ARCM -4.8% vs SPY -56.5%.
Should I hold both ARCM and SPY?
ARCM and SPY 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 ARCM and SPY?
ARCM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 593 unique securities.
Which pays a higher dividend, ARCM or SPY?
ARCM yields 3.61% while SPY yields 1.01%, so ARCM currently pays the higher dividend yield.
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