MARB vs VOO
First Trust Merger Arbitrage ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | MARB | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.69% | 0.03% | |
| AUM | $20M | $979.0B | |
| Dividend Yield | 2.98% | 1.09% | |
| Holdings | 30 | 509 | |
| YTD Return | +1.96% | +13.44% | |
| 1Y Return | +6.71% | +22.62% | |
| 3Y Return (annualized) | +4.28% | +21.47% | |
| 5Y Return (annualized) | +2.94% | +13.27% | |
| Volatility (annualized) | 3.5% | 14.1% | |
| Max Drawdown | -12.0% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Feb 4, 2020 | Sep 7, 2010 |
MARB vs VOO Performance
First Trust Merger Arbitrage ETF (MARB) is a ETF from First Trust Portfolios (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year MARB returned +6.71% while VOO returned +22.62%. Year to date, MARB is up 1.96% versus a gain of 13.44% for VOO.
Over three years, MARB compounded at +4.28% per year against +21.47% for VOO; over five years the annualized figures are +2.94% and +13.27% respectively. Across the full 6-year window we track, VOO has the edge at +13.55% annualized vs +2.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -34.3% for VOO. 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 VOO charges 0.03%. On a $10,000 position that is $169 vs $3 annually, a gap of $166 per year that compounds over a long holding period. On income, MARB currently yields 2.98% against 1.09% for VOO.
Holdings Overlap
MARB and VOO share 1 holdings out of 525 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 VOO | Difference |
|---|---|---|---|
| EA | 4.25% | 0.07% | 4.18% |
Frequently Asked Questions
Which is cheaper, MARB or VOO?
MARB has an expense ratio of 1.69% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $166 per year of difference.
Which performed better, MARB or VOO?
Over the past year MARB returned +6.71% vs +22.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (6 years), MARB annualized +2.07% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, MARB or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 3.5% for MARB. Worst drawdown: MARB -12.0% vs VOO -34.3%.
Should I hold both MARB and VOO?
MARB and VOO 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 VOO?
MARB and VOO share 1 common holdings with a 0.1% weight overlap. Combined, they hold 525 unique securities.
Which pays a higher dividend, MARB or VOO?
MARB yields 2.98% while VOO yields 1.09%, so MARB currently pays the higher dividend yield.
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