ETF Evaluator:
Arrow Reserve Capital Management ETF (ARCM)
Follow This ETF
(as of Sep 02)
Best Performing in Ultrashort Bond Over the Last Year
| 6.2% | iShares Interest Rate Hdg L/T Corp BdETF (IGBH) |
| 5.8% | Simplify Treasury Option Income ETF (BUCK) |
| 5.7% | iShares Interest Rate Hedged Corp Bd ETF (LQDH) |
| 5.3% | iShares Interest Rt Hdg U.S. Aggt Bd ETF (AGRH) |
| 5.3% | NEOS Enhanced Inc 1-3 Month T-Bill ETF (CSHI) |
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ETF Details
Arrow Reserve Capital Management ETF Overview
Arrow Reserve Capital Management ETF (ARCM) is an actively managed Taxable Bond Ultrashort Bond exchange-traded fund (ETF). ArrowShares launched the ETF in 2017.
The investment seeks to preserve capital while maximizing current income.
The fund invests in a variety of domestic fixed income securities. The fund invests in fixed income instruments with a dollar-weighted average effective maturity of 0 to 2 years issued by U.S. Dollar-denominated issuers, including mortgage- or asset-backed securities, rated Baa- or higher by Moody’s Investors Service, Inc.(“Moody’s”), or equivalently rated by Standard & Poor’s Ratings Services (“S&P”) or Fitch, Inc.(“Fitch”), or, if unrated, determined by the fund’s sub-advisor to be of comparable quality.
About Arrow Reserve Capital Management ETF (ARCM)
There are 5 members of the management team with an average tenure of 9.34 years: Jonathan Guyer (2017), Michael Kastner (2017), Steven Boyd (2017), Joseph Barrato (2017) and Adam Cohn (2017). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 1 primary benchmark: FTSE Treasury Bill 6 Mon USD index with a weighting of 100%. Arrow Reserve Capital Management ETF has 101 securities in its portfolio. The top 10 holdings constitute 37.7% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Arrow Reserve Capital Management ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. Arrow Reserve Capital Management ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 48.2% (48.2% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Arrow Reserve Capital Management ETF has 51.9% of the portfolio in cash.
Assets Under Management
The fund has $51 million in total assets, which is below the $5 billion average for the Ultrashort Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
ARCM Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Arrow Reserve Capital Management ETF expense ratio is average compared to funds in the Ultrashort Bond category. Arrow Reserve Capital Management ETF has an expense ratio of 0.50%, which is 127% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Arrow Reserve Capital Management ETF has a portfolio turnover rate of 80%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 57% for the Ultrashort Bond category.
Recently, in the month of July 2026, Arrow Reserve Capital Management ETF returned 0.3%, which earned it a grade of F, as the Ultrashort Bond category had an average return of 0.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Arrow Reserve Capital Management ETF has a trailing yield of 3.61%, which is below the 4.07% category average.
The fund normally distributes its income monthly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Arrow Reserve Capital Management ETF Grades
Year to date, the ETF has returned 1.9%, 0.3 percentage points worse than the category, which translates into a grade of F. The fund has returned 3.6% over the past year (grade of F), 4.5% over the past three years (grade of F) and 3.3% per year over the past five years (grade of F).
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ARCM Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| ARCM Return (NAV) | 0.3% | 0.8% | 3.6% | 4.5% | 3.3% | na |
| ARCM Return (Price) | 0.3% | 1.2% | 3.5% | 4.6% | 3.3% | na |
| NAV +/- Price Return | -0.039% | -0.325% | 0.150% | -0.121% | -0.072% | na |
| Ultrashort Bond Avg | 0.3% | 0.9% | 4.2% | 5.2% | 3.9% | 3.0% |
| ARCM Grade (NAV) | F | F | F | F | F | na |
| +/- Category (NAV) | -0.0% | -0.1% | -0.6% | -0.7% | -0.6% | na |
| ARCM Tax-Cost Ratio | na | na | 1.5% | 1.8% | 1.3% | na |
ARCM Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| ARCM Return (NAV) | 1.9% | 4.1% | 5.1% | 5.0% | 0.5% | -0.3% | 0.9% | 2.7% | 1.6% | na | na |
| ARCM Return (Price) | 2.2% | 4.1% | 5.2% | 4.7% | 0.7% | -0.3% | 1.0% | 2.7% | 1.3% | na | na |
| NAV +/- Price Ret | 0.176% | -0.003% | 0.020% | -0.062% | 0.433% | 0.000% | 0.055% | 1.1% | -15.7% | na | na |
| Ultrashort Bond Avg | 2.2% | 4.8% | 5.8% | 6.1% | 0.4% | 0.3% | 1.4% | 3.6% | 1.4% | 2.3% | 1.9% |
| ARCM Grade (NAV) | F | F | F | F | C | F | D | D | D | na | na |
| +/- Category | -0.3% | -0.7% | -0.7% | -1.0% | 0.0% | -0.6% | -0.5% | -1.0% | 0.2% | na | na |
| Risk Measures | |
| Beta: | 0.03 |
| R-Squared: | 56% |
| Standard Deviation: | 0.3% |
| Category Risk Index: | 0.56 |
| Category Risk Rating: | Below Average |
| Total Risk Index: | 0.03 |
| Total Risk Rating: | Low |
| Portfolio Characteristics | |
| Yield: | 3.6% |
| Total Assets: | $ 51 Mil |
| Share Class Assets: | $ 51 Mil |
| Turnover: | 80.0% |
| Expense Ratio: | 0.50% |
| Index Fund: | No |
| Index Tracked: | FTSE Treasury Bill 6 Mon USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 5 | |||
| Longest Tenure: 9.3 years | |||
| Average Tenure: 9.3 years | |||
| Managers (Year): Guyer Jonathan (2017), Kastner Michael (2017), Boyd Steven (2017), Barrato Joseph (2017), Cohn Adam (2017) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 101 |
| % in Top 10 Holdings: | 37.7% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 48.2% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 51.9% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | ArrowShares |
| Phone Number: | 877-277-6933 |
| Website: | www.arrowfunds.com |
| Inception Date: | March 31, 2017 |
Expenses and Fees
| Expense Ratio (%): | 0.50% (Rating: Avg) |
| Category Average Expense Ratio (%): | 0.22% |
