At a glance
MARB charges 1.74% a year, above the 0.96% average of the 7 funds most like it (the most expensive of 8). It has $33.9M in assets, the 6th largest of that group; it paid 0.62% of its price in distributions over the past 12 months, annual. Over the past year it returned +4.2% with distributions reinvested (S&P 500: +11.5%), 6th of those 8 funds; over three years it returned +3.6% a year. At its worst it fell 12.0% in the 2020 crash (S&P 500: 33.7%) and 3.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 25 months and 2 months after the lows.
The short version
First Trust Merger Arbitrage ETF (MARB) follows a merger arbitrage strategy, which seeks to profit from the gap between a takeover target's share price and the agreed deal price. Its returns have shown almost no link to the stock market: its one-year beta, a measure of market sensitivity, was -0.03 as of October 27, 2026. The trade-off is cost: its 1.74% expense ratio is the highest among similar funds, which average 0.96%.
Price history
The interactive chart needs JavaScript.
MARB +4.2% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| MARB price data to Oct 27, 2026 | +1.8% | +4.2% | +3.6% | +3.1% | — | +2.0% |
- Over the year to Oct 27, 2026, MARB returned +4.2%, 6th of 8 among similar funds.
- Its 5-year annualized return was +3.1%.
- In the 2020 COVID crash it fell 12% and regained its old high 25.1 months after the low.
- Its worst full calendar year was 2021 (+0.3%); its best was 2025 (+7.0%).
- The deepest fall in its price history was 12% (Feb 21, 2020 to Mar 18, 2020), recovered by Apr 20, 2022.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +1.8% |
| 2025 | +7.0% |
| 2024 | +0.7% |
| 2023 | +2.2% |
| 2022 | +3.9% |
| 2021 | +0.3% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 8% over that stretch · deepest drop along the way 12%, back to its old high 25.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 3.2% over that stretch · deepest drop along the way 3.2%, back to its old high 1.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.6200 | +51.2% |
| 2024 | $0.4100 | -8.9% |
| 2023 | $0.4500 | +125.0% |
| 2022 | $0.2000 |
How it works
MARB follows a merger arbitrage strategy. When one company agrees to acquire another, the target's shares usually trade below the offer price until the deal closes. That gap, called the spread, reflects the wait and the risk that the deal collapses. Merger arbitrage funds buy target shares to collect the spread as deals close. In stock-for-stock deals, such funds often sell short the acquirer's shares, borrowing and selling them to hedge against swings in the acquirer's price.
Merger arbitrage returns hinge on deal outcomes rather than market direction. MARB's one-year beta, a measure of how closely a fund moves with the stock market, was -0.03 as of October 27, 2026. The main risk is a broken deal: if regulators block a takeover or the buyer walks away, the target's shares can drop sharply, erasing many small gains at once. Market panics can hit many deals together; MARB fell 12% in early 2020.
First Trust's prospectus details on how MARB picks deals, sizes positions and uses derivatives or short sales weren't available for this page. MARB's price also showed no change over the three months to October 27, 2026, and the ticker didn't appear in SEC listings, which can happen when a fund is renamed or closed. It is worth confirming the fund's status and strategy with First Trust before investing.
What it really costs
- MARB charges 1.74% a year, versus an average of 0.96% for the similar funds below (8th of 8, cheapest first).
In a retirement portfolio
Its returns have shown almost no link to the stock market, with a one-year beta of -0.03 as of October 27, 2026, though low returns and a high fee limit what it adds.
MARB launched in February 2020, so it missed the 2008 financial crisis. It fell 12% in the COVID crash, between February 21 and March 18, 2020, and did not regain that peak until April 20, 2022, 25 months later. A retiree selling shares for cash in spring 2020 would have locked in a loss. The 2022 bear market went better: the fund gained 3.2% while stocks slid, and its brief 3.2% dip recovered in under two months. Its worst calendar year, 2021, still gained 0.3%.
Income is minor: the trailing 12-month yield was 0.62% as of October 27, 2026, paid once a year. The 1.74% expense ratio, highest among similar funds (average 0.96%), is a heavy drag on returns that averaged 3.1% a year over five years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a holding that has moved independently of stocks: its one-year beta, a gauge of market sensitivity, was -0.03 as of October 27, 2026.
- Investors prioritizing steadiness: three-year volatility (price swings) was 4.3% as of October 27, 2026; the fund gained 3.2% in the 2022 bear market.
- Investors who understand merger arbitrage and accept the risk of failed takeovers in return for results driven by deals, not market direction.
Look elsewhere if
- Cost-conscious investors: the 1.74% expense ratio is highest among similar funds; NYLI Merger Arbitrage ETF (MNA) charges 0.77% and ProShares Merger ETF (MRGR) 0.75%.
- Income seekers: the trailing 12-month yield was 0.62% as of October 27, 2026, paid in a single annual distribution.
- Long-term growth investors: returns averaged 3.1% a year over five years to October 27, 2026, and its 2020 drop took 25 months to recover.
Close alternatives
Matched by legacy category (no holdings report for this fund).
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| MARB this fund | 1.74% | $33.9M | +4.2% | +3.6% |
| EVNT AltShares Event-Driven ETF | 1.31% | $5.0M | +8.7% | +11.3% |
| MNA NYLI Merger Arbitrage ETF | 0.77% | $222.2M | +2.6% | +5.8% |
| MRGR Proshares Merger ETF | 0.75% | $10.4M | +5.4% | +7.5% |
| ARB AltShares Merger Arbitrage ETF | 0.84% | $82.1M | +3.3% | +5.1% |
| FTLS First Trust Long/Short Equity ETF | 1.38% | $1.90B | +10.3% | +15.4% |
| CTA Simplify Managed Futures Strategy ETF | 0.76% | $964.4M | +16.7% | +10.8% |
| QAI NYLI Hedge Multi-Strategy Tracker ETF | 0.91% | $689.2M | +6.6% | +9.4% |
Questions investors ask
What does MARB invest in?
MARB uses a merger arbitrage strategy, which typically means buying shares of companies that have agreed to be acquired and aiming to earn the gap between their market price and the deal price as takeovers close. Its largest holdings weren't available for this page, so checking First Trust's latest holdings list is worthwhile. The fund is small, with net assets of $33.9 million, and sits in the alternatives category, outside traditional stock and bond funds.
Is MARB a good investment for retirement?
It depends on the role. MARB may suit retirees wanting something that moves independently of stocks: it gained 3.2% during the 2022 bear market, and its one-year beta was -0.03 as of October 27, 2026. But it returned just 3.1% a year over five years, yields 0.62%, and charges 1.74%. It also fell 12% in early 2020 and took about 25 months to recover.
What is MARB's expense ratio?
MARB's expense ratio is 1.74%, the highest of the eight funds in its comparison group, where similar funds average 0.96%. Other merger arbitrage ETFs charge less: AltShares Merger Arbitrage ETF (ARB) 0.84%, NYLI Merger Arbitrage ETF (MNA) 0.77% and ProShares Merger ETF (MRGR) 0.75%. Because merger arbitrage returns tend to be modest, cost matters: MARB returned 3.1% a year over the five years to October 27, 2026, after expenses.
What's the difference between MARB and MNA?
Both are merger arbitrage ETFs, but NYLI Merger Arbitrage ETF (MNA) costs less and is much larger. MNA charges 0.77% versus MARB's 1.74%, with net assets of $222.2 million against MARB's $33.9 million. As of October 27, 2026, MNA returned 5.8% a year over three years, ahead of MARB's 3.6%, while MARB led over one year, 4.2% versus 2.6%. Their methods may differ, so comparing prospectuses is worthwhile.
Does MARB pay dividends?
Yes, but only a little, and only once a year. MARB paid $0.13 per share over the 12 months to October 27, 2026, a trailing yield of 0.62%. Merger arbitrage funds earn most of their return from price gains as deals close, not from dividends, so MARB is unlikely to meet much of a retiree's income need on its own.