MARB vs SPY
First Trust Merger Arbitrage 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 503 holdings.
Side-by-Side Comparison
| Metric | MARB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.69% | 0.09% | |
| AUM | $20M | $789.1B | |
| Dividend Yield | 2.98% | 1.01% | |
| Holdings | 30 | 505 | |
| YTD Return | +1.96% | +13.39% | |
| 1Y Return | +6.71% | +22.52% | |
| 3Y Return (annualized) | +4.28% | +21.36% | |
| 5Y Return (annualized) | +2.94% | +13.19% | |
| Volatility (annualized) | 3.5% | 15.3% | |
| Max Drawdown | -12.0% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Feb 4, 2020 | Jan 22, 1993 |
MARB vs SPY Performance
First Trust Merger Arbitrage ETF (MARB) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MARB returned +6.71% while SPY returned +22.52%. Year to date, MARB is up 1.96% versus a gain of 13.39% for SPY.
Over three years, MARB compounded at +4.28% per year against +21.36% for SPY; over five years the annualized figures are +2.94% and +13.19% respectively. Across the full 6-year window we track, SPY has the edge at +8.84% annualized vs +2.07%. 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 3.5% for MARB. 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 -12.0% for MARB 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MARB charges 1.69% per year while SPY charges 0.09%. On a $10,000 position that is $169 vs $9 annually, a gap of $160 per year that compounds over a long holding period. On income, MARB currently yields 2.98% against 1.01% for SPY.
Holdings Overlap
MARB and SPY share 1 holdings out of 523 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MARB | Weight in SPY | Difference |
|---|---|---|---|
| EA | 4.25% | 0.07% | 4.18% |
Frequently Asked Questions
Which is cheaper, MARB or SPY?
MARB has an expense ratio of 1.69% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $160 per year of difference.
Which performed better, MARB or SPY?
Over the past year MARB returned +6.71% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), MARB annualized +2.07% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, MARB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 3.5% for MARB. Worst drawdown: MARB -12.0% vs SPY -56.5%.
Should I hold both MARB and SPY?
MARB and SPY have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MARB and SPY?
MARB and SPY share 1 common holdings with a 0.1% weight overlap. Combined, they hold 523 unique securities.
Which pays a higher dividend, MARB or SPY?
MARB yields 2.98% while SPY yields 1.01%, so MARB currently pays the higher dividend yield.
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