ETF Education Report: FIRST TRUST MERGER ARBITRAGE ETF (MARB)

What this ETF is trying to do

The FIRST TRUST MERGER ARBITRAGE ETF (ticker: MARB) is an exchange-traded fund. While the specific strategy isn't detailed in the data, merger arbitrage funds generally look to profit from the price changes that happen when companies merge.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return and total return.

• Price Return: This measures only the change in the share price.

• Total Return: This includes both the share price changes and any cash distributions (dividends) paid out.

For MARB, the numbers show:

• Year-to-Date (YTD): The price return and total return are both approximately 1.77%.

• One-Year: The price return was about 1.03%, but the total return was higher at approximately 4.14%.

• Three-Year: The price return was about 2.98%, while the total return was approximately 10.56%.

• Five-Year: The five-year total return was approximately 15.79%.

To give you an idea of price movement, the current price is $21.00. The estimated price from roughly one year ago was approximately $20.79.

Income and distribution explanation

Some investors look for ETFs that pay out cash. This is called the distribution yield. MARB has a distribution yield of approximately 2.96%. This means the fund paid out about $0.62 per share in trailing distributions.

The data shows that these payments happen irregularly (less frequently) and there were two payouts in the last 12 months. It is important to remember that a high distribution yield does not guarantee that the total return will be high.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. Investors often care about this because they want to keep their original investment (the principal) stable while collecting income.

For MARB, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Top Holdings

The following are the top holdings in this portfolio (note that this list is partial):

• DREYFUS GOVT CM INST 289: 51.01%

• ELECTRONIC ARTS INC: 4.22%

• GLOBAL BUSINESS TRAVEL GROUP INC: 4.14%

• SELECT MEDICAL HOLDINGS CORP: 4.04%

• SILA REALTY TRUST INC: 4.00%

• MASIMO CORP: 3.82%

• AVANOS MEDICAL INC: 3.77%

• TALKSPACE INC: 3.77%

• BRIGHTHOUSE FINANCIAL INC: 3.60%

• CATALYST PHARMACEUTICALS INC: 3.50%

Holdings can change over time. This data was updated on October 4, 2026.

Pros

• The fund shows a higher total return than its price return, meaning distributions have added value.

• The erosion-risk score suggests the fund's value has been relatively stable.

Cons

• Distributions are irregular and do not happen on a set schedule.

• The price return has been lower than the total return, meaning much of the growth comes from distributions rather than just share price increases.

Beginner takeaway

When looking at MARB, notice the difference between the share price change and the total return. Because the total return is higher than the price return, it shows that the cash distributions are a significant part of the fund's performance. Always look at both numbers to see the full picture.