AltShares Merger Arbitrage ETF

Frequently Asked Questions About ARB

What does ARB invest in?

ARB is the first ETF by AltShares Trust and the first merger arbitrage fund that hedges foreign currency exposure. The fund is passively managed to invest in a developed market index of all-cap equities, focused on publicly-announced stock-for-stock mergers or acquisitions. The fund takes long positions on 30-50 takeover targets, while shorting the acquiring firms to hedge the acquirers stock price decline. The index rebalances and reconstitutes twice a month. ARB hedges its FX risks against the USD using forward currency or futures contracts. The fund may also hold positions in cash when the number of takeover targets are not met or when deals are consummated.

What is the expense ratio of ARB?

AltShares Merger Arbitrage ETF (ARB) charges an expense ratio of 0.82%. This is the annual fee deducted from fund assets to cover management and operations.

How big is ARB?

AltShares Merger Arbitrage ETF (ARB) manages $110.9M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is ARB actively managed or an index fund?

ARB is a passive index fund. It tracks a published benchmark by holding the constituents in their published weights. Index funds typically charge low expense ratios (ARB's is 0.82%) because there's no security selection cost.

When was ARB launched?

AltShares Merger Arbitrage ETF (ARB) launched in May 2020 and is managed by Altshares.

How has ARB performed?

ARB's total return (price change plus reinvested distributions) is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.