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ARBFX vs. MERFX
Performance
Return for Risk
Dividends
Drawdowns
Volatility

Performance

ARBFX vs. MERFX - Performance Comparison

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

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ARBFX vs. MERFX - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
ARBFX
The Arbitrage Fund
0.45%8.01%2.61%5.94%-1.02%0.85%5.42%3.57%2.12%2.59%
MERFX
The Merger Fund
0.46%8.11%3.27%4.17%0.71%-0.19%4.87%5.96%7.68%2.39%

Returns By Period

The year-to-date returns for both investments are quite close, with ARBFX having a 0.45% return and MERFX slightly higher at 0.46%. Over the past 10 years, ARBFX has underperformed MERFX with an annualized return of 3.20%, while MERFX has yielded a comparatively higher 3.88% annualized return.


ARBFX

1D
0.00%
1M
-0.37%
YTD
0.45%
6M
2.38%
1Y
5.95%
3Y*
5.57%
5Y*
3.01%
10Y*
3.20%

MERFX

1D
0.00%
1M
0.00%
YTD
0.46%
6M
1.84%
1Y
6.26%
3Y*
5.30%
5Y*
3.09%
10Y*
3.88%
*Multi-year figures are annualized to reflect compound growth (CAGR)

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ARBFX vs. MERFX - Expense Ratio Comparison

ARBFX has a 1.43% expense ratio, which is lower than MERFX's 1.50% expense ratio.


Return for Risk

ARBFX vs. MERFX — Risk / Return Rank

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

ARBFX
ARBFX Risk / Return Rank: 9696
Overall Rank
ARBFX Sharpe Ratio Rank: 9696
Sharpe Ratio Rank
ARBFX Sortino Ratio Rank: 9797
Sortino Ratio Rank
ARBFX Omega Ratio Rank: 9696
Omega Ratio Rank
ARBFX Calmar Ratio Rank: 9595
Calmar Ratio Rank
ARBFX Martin Ratio Rank: 9797
Martin Ratio Rank

MERFX
MERFX Risk / Return Rank: 9999
Overall Rank
MERFX Sharpe Ratio Rank: 100100
Sharpe Ratio Rank
MERFX Sortino Ratio Rank: 9999
Sortino Ratio Rank
MERFX Omega Ratio Rank: 9898
Omega Ratio Rank
MERFX Calmar Ratio Rank: 9999
Calmar Ratio Rank
MERFX Martin Ratio Rank: 100100
Martin Ratio Rank
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.

ARBFX vs. MERFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for The Arbitrage Fund (ARBFX) 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.


ARBFXMERFXDifference

Sharpe ratio

Return per unit of total volatility

2.45

4.24

-1.79

Sortino ratio

Return per unit of downside risk

3.79

8.05

-4.26

Omega ratio

Gain probability vs. loss probability

1.59

2.09

-0.50

Calmar ratio

Return relative to maximum drawdown

3.28

12.42

-9.14

Martin ratio

Return relative to average drawdown

16.11

58.81

-42.69

ARBFX vs. MERFX - Sharpe Ratio Comparison

The current ARBFX Sharpe Ratio is 2.45, which is lower than the MERFX Sharpe Ratio of 4.24. The chart below compares the historical Sharpe Ratios of ARBFX and MERFX, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.


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Sharpe Ratios by Period


ARBFXMERFXDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.45

4.24

-1.79

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.83

0.90

-0.07

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.73

1.03

-0.31

Sharpe Ratio (All Time)

Calculated using the full available price history

0.34

0.68

-0.34

Correlation

The correlation between ARBFX and MERFX is 0.57, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.


Dividends

ARBFX vs. MERFX - Dividend Comparison

ARBFX's dividend yield for the trailing twelve months is around 3.57%, less than MERFX's 7.38% yield.


TTM20252024202320222021202020192018201720162015
ARBFX
The Arbitrage Fund
3.57%3.59%0.94%1.92%3.67%0.53%6.94%2.12%1.71%3.55%0.96%2.36%
MERFX
The Merger Fund
7.38%7.42%3.24%2.59%3.50%0.27%3.31%1.34%4.52%0.59%0.32%1.25%

Drawdowns

ARBFX vs. MERFX - Drawdown Comparison

The maximum ARBFX drawdown since its inception was -38.01%, which is greater than MERFX's maximum drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for ARBFX and MERFX.


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Drawdown Indicators


ARBFXMERFXDifference

Max Drawdown

Largest peak-to-trough decline

-38.01%

-20.82%

-17.19%

Max Drawdown (1Y)

Largest decline over 1 year

-1.82%

-0.52%

-1.30%

Max Drawdown (5Y)

Largest decline over 5 years

-7.64%

-5.95%

-1.69%

Max Drawdown (10Y)

Largest decline over 10 years

-11.90%

-9.35%

-2.55%

Current Drawdown

Current decline from peak

-0.44%

-0.17%

-0.27%

Average Drawdown

Average peak-to-trough decline

-2.38%

-2.68%

+0.30%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.37%

0.11%

+0.26%

Volatility

ARBFX vs. MERFX - Volatility Comparison

The Arbitrage Fund (ARBFX) has a higher volatility of 0.61% compared to The Merger Fund (MERFX) at 0.47%. This indicates that ARBFX'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.


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Volatility by Period


ARBFXMERFXDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.61%

0.47%

+0.14%

Volatility (6M)

Calculated over the trailing 6-month period

1.47%

1.00%

+0.47%

Volatility (1Y)

Calculated over the trailing 1-year period

2.47%

1.53%

+0.94%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

3.66%

3.45%

+0.21%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

4.42%

3.76%

+0.66%