MARB vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricMARBVOOWinner
Expense Ratio1.69%0.03%
AUM$20M$979.0B
Dividend Yield2.98%1.09%
Holdings30509
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 FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryAlternativeEquity
InceptionFeb 4, 2020Sep 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

0.1%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

StockWeight in MARBWeight in VOODifference
EA4.25%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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