ETF Evaluator:
AltShares Merger Arbitrage ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in Event Driven Over the Last Year
| 20.1% | Saba Closed-End Funds ETF (CEFS) |
| 10.9% | AltShares Event-Driven ETF (EVNT) |
| 10.3% | ProShares Merger (MRGR) |
| 8.2% | Event Driven () |
| 7.9% | First Trust Equity Market Neutral ETF (NTRL) |
Risk
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Risk
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ETF Details
AltShares Merger Arbitrage ETF Overview
AltShares Merger Arbitrage ETF (ARB) is a passively managed Alternative Event Driven exchange-traded fund (ETF). AltShares launched the ETF in 2020.
The investment seeks to provide investment results that closely correspond, before fees and expenses, to the performance of its underlying index, the Water Island Merger Arbitrage USD Hedged Index.
The fund seeks to track the performance of the index, which is designed to reflect a global merger arbitrage strategy. Under normal market conditions, it will invest at least 80% of its net assets (including borrowings for investment purposes) in the constituents of the index and in financial instruments with economic characteristics similar to such constituents such as swaps on such constituents. The fund is non-diversified.
About AltShares Merger Arbitrage ETF (ARB)
There are 3 members of the management team with an average tenure of 6.24 years: Eric Becker (2020), Christopher Plunkett (2020) and John Orrico (2020). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Water Island M&A hdg TR USD index with a weighting of 100%. AltShares Merger Arbitrage ETF has 99 securities in its portfolio. The top 10 holdings constitute 28.1% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
AltShares Merger Arbitrage ETF is part of the Alternative Strategies global asset class and is within the Alternative ETF group. AltShares Merger Arbitrage ETF has 16.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 61.9% There is 16.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). AltShares Merger Arbitrage ETF has 22.5% of the portfolio in cash.
Assets Under Management
The fund has $101 million in total assets, which is below the $118 million average for the Event Driven 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.
ARB 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 AltShares Merger Arbitrage ETF expense ratio is above average compared to funds in the Event Driven category. AltShares Merger Arbitrage ETF has an expense ratio of 0.76%, which is 44% lower than its category average, making the fund expense ratio grade a A. 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. AltShares Merger Arbitrage ETF has a portfolio turnover rate of 431%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 292% for the Event Driven category.
Recently, in the month of July 2026, AltShares Merger Arbitrage ETF returned -0.2%, which earned it a grade of D, as the Event Driven category had an average return of 0.4%. 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.
AltShares Merger Arbitrage ETF has a trailing yield of 0.42%, which is below the 3.65% category average.
The fund normally distributes its income annually.
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.
AltShares Merger Arbitrage ETF Grades
Year to date, the ETF has returned 2.2%, 2.3 percentage points worse than the category, which translates into a grade of D. The fund has returned 3.3% over the past year (grade of D), 5.5% over the past three years (grade of D) and 4.1% per year over the past five years (grade of C).
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ARB 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 |
|
| ARB Return (NAV) | -0.2% | 0.4% | 3.3% | 5.5% | 4.1% | na |
| ARB Return (Price) | -0.1% | 0.3% | 3.4% | 5.5% | 4.1% | na |
| NAV +/- Price Return | -0.129% | 0.173% | -0.031% | -0.002% | 0.022% | na |
| Event Driven Avg | 0.4% | 1.5% | 8.2% | 8.1% | 4.5% | 4.6% |
| ARB Grade (NAV) | D | D | D | D | C | na |
| +/- Category (NAV) | -0.6% | -1.1% | -4.9% | -2.7% | -0.4% | na |
| ARB Tax-Cost Ratio | na | na | 0.2% | 0.2% | 0.5% | na |
ARB Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| ARB Return (NAV) | 2.2% | 5.6% | 4.0% | 4.0% | 2.6% | 3.2% | na | na | na | na | na |
| ARB Return (Price) | 1.9% | 6.1% | 4.1% | 3.8% | 2.7% | 3.2% | na | na | na | na | na |
| NAV +/- Price Ret | -0.174% | 0.085% | 0.010% | -0.049% | 0.031% | -0.013% | na | na | na | na | na |
| Event Driven Avg | 4.5% | 9.9% | 6.7% | 6.0% | -3.9% | 4.2% | 13.2% | 11.2% | -2.3% | 4.6% | 2.7% |
| ARB Grade (NAV) | D | F | D | C | A | C | na | na | na | na | na |
| +/- Category | -2.3% | -4.3% | -2.6% | -2.0% | 6.5% | -1.0% | na | na | na | na | na |
| Risk Measures | |
| Beta: | 0.03 |
| R-Squared: | 3% |
| Standard Deviation: | 2.0% |
| Category Risk Index: | 0.43 |
| Category Risk Rating: | Low |
| Total Risk Index: | 0.17 |
| Total Risk Rating: | Low |
| Portfolio Characteristics | |
| Yield: | 0.4% |
| Total Assets: | $ 102 Mil |
| Share Class Assets: | $ 102 Mil |
| Turnover: | 431.0% |
| Expense Ratio: | 0.76% |
| Index Fund: | Yes |
| Index Tracked: | S&P 500 (TR) (1970) |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | |
| Income Distribution Frequency: | Annually |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 6.2 years | |||
| Average Tenure: 6.2 years | |||
| Managers (Year): Becker Eric (2020), Plunkett Christopher (2020), Orrico John (2020) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 99 |
| % in Top 10 Holdings: | 28.1% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 16.0% |
Portfolio Allocation |
|
| Domestic Stock: | 61.9% |
| Foreign Stock: | 16.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | -0.4% |
| Cash: | 22.5% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | AltShares |
| Phone Number: | 855-955-1607 |
| Website: | |
| Inception Date: | May 7, 2020 |
Expenses and Fees
| Expense Ratio (%): | 0.76% (Rating: Above Avg) |
| Category Average Expense Ratio (%): | 1.36% |
