AEDNX vs. MERFX

Last updated Jun 4, 2026

AEDNX (Water Island Event-Driven Fund) and MERFX (The Merger Fund) are both Event Driven funds. Over the past 10 years, AEDNX returned 4.22%/yr vs 3.88%/yr for MERFX. A 0.62 correlation means they provide meaningful diversification when combined. AEDNX charges 1.44%/yr vs 1.50%/yr for MERFX.

Performance

AEDNX vs. MERFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Water Island Event-Driven Fund (AEDNX) and The Merger Fund (MERFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AEDNX achieves a 1.64% return, which is significantly higher than MERFX's 0.93% return. Over the past 10 years, AEDNX has outperformed MERFX with an annualized return of 4.22%, while MERFX has yielded a comparatively lower 3.88% annualized return.

AEDNX

• 1D: -0.23%
• 1M: 0.15%
• YTD: 1.64%
• 6M: 2.29%
• 1Y: 7.12%
• 3Y*: 6.74%
• 5Y*: 2.90%
• 10Y*: 4.22%

MERFX

• 1D: -0.06%
• 1M: 0.12%
• YTD: 0.93%
• 6M: 1.20%
• 1Y: 4.54%
• 3Y*: 6.01%
• 5Y*: 2.81%
• 10Y*: 3.88%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AEDNX vs. MERFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AEDNX Water Island Event-Driven Fund	1.64%	8.67%	2.26%	5.90%	-0.63%	1.18%	13.42%	4.76%	-0.15%	3.89%
MERFX The Merger Fund	0.93%	8.11%	3.27%	4.17%	0.71%	-0.19%	4.87%	5.96%	7.68%	2.39%

Correlation

The correlation between AEDNX and MERFX is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (10Y) Calculated over the trailing 10-year period	0.61
Correlation (All Time) Calculated using the full available price history since Oct 1, 2010	0.62

Over the past year, the correlation between AEDNX and MERFX has dropped to 0.39 - well below their long-term average of 0.62, suggesting their price drivers have been diverging.

Return for Risk

AEDNX vs. MERFX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AEDNX

AEDNX Risk / Return Rank: 92
AEDNX Sharpe Ratio Rank: 89
AEDNX Sortino Ratio Rank: 95
AEDNX Omega Ratio Rank: 93
AEDNX Calmar Ratio Rank: 93
AEDNX Martin Ratio Rank: 91

MERFX

MERFX Risk / Return Rank: 96
MERFX Sharpe Ratio Rank: 93
MERFX Sortino Ratio Rank: 97
MERFX Omega Ratio Rank: 94
MERFX Calmar Ratio Rank: 98
MERFX Martin Ratio Rank: 98

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AEDNX vs. MERFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Water Island Event-Driven Fund (AEDNX) and The Merger Fund (MERFX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	AEDNX	MERFX	Difference
Sharpe ratio: Return per unit of total volatility	2.94	3.19	-0.25
Sortino ratio: Return per unit of downside risk	4.98	5.92	-0.94
Omega ratio: Gain probability vs. loss probability	1.70	1.74	-0.04
Calmar ratio: Return relative to maximum drawdown	5.27	8.79	-3.52
Martin ratio: Return relative to average drawdown	18.71	40.37	-21.66
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AEDNX vs. MERFX - Sharpe Ratio Comparison

The current AEDNX Sharpe Ratio is 2.94, which is comparable to the MERFX Sharpe Ratio of 3.19. The chart below compares the historical Sharpe Ratios of AEDNX and MERFX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AEDNX	MERFX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.94	3.19	-0.25
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.72	0.82	-0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.82	1.04	-0.22
Sharpe Ratio (All Time) Calculated using the full available price history	0.64	0.68	-0.04

Drawdowns

AEDNX vs. MERFX - Drawdown Comparison

The maximum AEDNX drawdown since its inception was -13.03%, smaller than the maximum MERFX drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for AEDNX and MERFX.

Drawdown Indicators

	AEDNX	MERFX	Difference
Max Drawdown Largest peak-to-trough decline	-13.03%	-20.82%	+7.79%
Max Drawdown (1Y) Largest decline over 1 year	-1.37%	-0.52%	-0.85%
Max Drawdown (3Y) Largest decline over 3 years	-2.79%	-3.36%	+0.57%
Max Drawdown (5Y) Largest decline over 5 years	-8.94%	-5.95%	-2.99%
Max Drawdown (10Y) Largest decline over 10 years	-12.24%	-9.35%	-2.89%
Current Drawdown Current decline from peak	-0.76%	-0.17%	-0.59%
Average Drawdown Average peak-to-trough decline	-2.71%	-2.66%	-0.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.39%	0.11%	+0.28%

Volatility

AEDNX vs. MERFX - Volatility Comparison

Water Island Event-Driven Fund (AEDNX) has a higher volatility of 0.95% compared to The Merger Fund (MERFX) at 0.38%. This indicates that AEDNX's price experiences larger fluctuations and is considered to be riskier than MERFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AEDNX	MERFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.95%	0.38%	+0.57%
Volatility (6M) Calculated over the trailing 6-month period	2.13%	0.92%	+1.21%
Volatility (1Y) Calculated over the trailing 1-year period	2.47%	1.43%	+1.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.05%	3.44%	+0.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.15%	3.75%	+1.40%

AEDNX vs. MERFX - Expense Ratio Comparison

AEDNX has a 1.44% expense ratio, which is lower than MERFX's 1.50% expense ratio.

Dividends

AEDNX vs. MERFX - Dividend Comparison

AEDNX's dividend yield for the trailing twelve months is around 0.93%, less than MERFX's 7.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AEDNX Water Island Event-Driven Fund	0.93%	0.95%	0.20%	0.72%	0.00%	0.00%	0.24%	0.46%	1.78%	0.62%	0.00%	2.79%
MERFX The Merger Fund	7.35%	7.42%	3.24%	2.59%	3.50%	0.27%	3.31%	1.34%	4.52%	0.59%	0.32%	1.25%

Frequently Asked Questions

Can I hold both AEDNX and MERFX in my portfolio?

AEDNX and MERFX have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AEDNX or MERFX?

AEDNX has higher volatility (0.95%) compared to MERFX (0.38%). In terms of maximum drawdown, AEDNX dropped -13.03% vs MERFX's -20.82%.

Which has better risk-adjusted returns?

MERFX currently has the higher Sharpe Ratio (3.19 vs 2.94), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.