ARBFX vs. MERIX

Last updated Jun 23, 2026

ARBFX (The Arbitrage Fund) and MERIX (The Merger Fund Class I) are both Event Driven funds. Over the past 10 years, ARBFX returned 3.24%/yr vs 4.21%/yr for MERIX. A 0.61 correlation means they provide meaningful diversification when combined. ARBFX charges 1.43%/yr vs 1.32%/yr for MERIX.

Performance

ARBFX vs. MERIX - Performance Comparison

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

Returns By Period

In the year-to-date period, ARBFX achieves a 1.12% return, which is significantly lower than MERIX's 1.24% return. Over the past 10 years, ARBFX has underperformed MERIX with an annualized return of 3.24%, while MERIX has yielded a comparatively higher 4.21% annualized return.

ARBFX

• 1D: 0.15%
• 1M: 0.07%
• YTD: 1.12%
• 6M: 1.19%
• 1Y: 5.93%
• 3Y*: 6.36%
• 5Y*: 2.96%
• 10Y*: 3.24%

MERIX

• 1D: 0.17%
• 1M: 0.12%
• YTD: 1.24%
• 6M: 1.36%
• 1Y: 4.97%
• 3Y*: 6.35%
• 5Y*: 3.29%
• 10Y*: 4.21%

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

ARBFX vs. MERIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ARBFX The Arbitrage Fund	1.12%	8.01%	2.61%	5.94%	-1.02%	0.85%	5.42%	3.57%	2.12%	2.59%
MERIX The Merger Fund Class I	1.24%	8.41%	3.54%	4.51%	1.01%	0.10%	5.14%	6.32%	7.98%	2.74%

Correlation

The correlation between ARBFX and MERIX is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.42
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Aug 5, 2013	0.61

The correlation between ARBFX and MERIX shifts across timeframes, from 0.42 (1 year) to 0.67 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

ARBFX vs. MERIX — Risk / Return Rank

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

ARBFX

ARBFX Risk / Return Rank: 97
ARBFX Sharpe Ratio Rank: 96
ARBFX Sortino Ratio Rank: 97
ARBFX Omega Ratio Rank: 95
ARBFX Calmar Ratio Rank: 97
ARBFX Martin Ratio Rank: 98

MERIX

MERIX Risk / Return Rank: 98
MERIX Sharpe Ratio Rank: 97
MERIX Sortino Ratio Rank: 98
MERIX Omega Ratio Rank: 96
MERIX Calmar Ratio Rank: 99
MERIX Martin Ratio Rank: 99

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. MERIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for The Arbitrage Fund (ARBFX) and The Merger Fund Class I (MERIX). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ARBFX	MERIX	Difference
Sharpe ratio: Return per unit of total volatility	3.20	3.32	-0.12
Sortino ratio: Return per unit of downside risk	5.55	6.16	-0.60
Omega ratio: Gain probability vs. loss probability	1.74	1.80	-0.06
Calmar ratio: Return relative to maximum drawdown	6.74	10.67	-3.94
Martin ratio: Return relative to average drawdown	29.71	45.87	-16.16

ARBFX vs. MERIX - Sharpe Ratio Comparison

The current ARBFX Sharpe Ratio is 3.20, which is comparable to the MERIX Sharpe Ratio of 3.32. The chart below compares the historical Sharpe Ratios of ARBFX and MERIX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ARBFX vs. MERIX - Drawdown Comparison

The maximum ARBFX drawdown since its inception was -38.01%, which is greater than MERIX's maximum drawdown of -9.33%. Use the drawdown chart below to compare losses from any high point for ARBFX and MERIX.

Drawdown Indicators

	ARBFX	MERIX	Difference
Max Drawdown Largest peak-to-trough decline	-38.01%	-9.33%	-28.68%
Max Drawdown (1Y) Largest decline over 1 year	-0.88%	-0.47%	-0.41%
Max Drawdown (3Y) Largest decline over 3 years	-2.26%	-3.85%	+1.59%
Max Drawdown (5Y) Largest decline over 5 years	-6.87%	-4.72%	-2.15%
Max Drawdown (10Y) Largest decline over 10 years	-11.90%	-9.33%	-2.57%
Current Drawdown Current decline from peak	-0.07%	-0.12%	+0.05%
Average Drawdown Average peak-to-trough decline	-2.36%	-1.02%	-1.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.20%	0.11%	+0.09%

Volatility

ARBFX vs. MERIX - Volatility Comparison

The current volatility for The Arbitrage Fund (ARBFX) is 0.46%, while The Merger Fund Class I (MERIX) has a volatility of 0.70%. This indicates that ARBFX experiences smaller price fluctuations and is considered to be less risky than MERIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARBFX	MERIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.46%	0.70%	-0.24%
Volatility (6M) Calculated over the trailing 6-month period	1.14%	1.08%	+0.06%
Volatility (1Y) Calculated over the trailing 1-year period	1.86%	1.51%	+0.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.64%	3.64%	0.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.42%	3.84%	+0.58%

ARBFX vs. MERIX - Expense Ratio Comparison

ARBFX has a 1.43% expense ratio, which is higher than MERIX's 1.32% expense ratio.

Dividends

ARBFX vs. MERIX - Dividend Comparison

ARBFX's dividend yield for the trailing twelve months is around 3.55%, less than MERIX's 7.86% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARBFX The Arbitrage Fund	3.55%	3.59%	0.94%	1.92%	3.67%	0.53%	6.94%	2.12%	1.71%	3.55%	0.96%	2.36%
MERIX The Merger Fund Class I	7.86%	7.95%	3.75%	2.91%	4.75%	0.27%	3.64%	1.34%	4.85%	0.98%	0.89%	1.63%

Frequently Asked Questions

Can I hold both ARBFX and MERIX in my portfolio?

ARBFX and MERIX have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ARBFX or MERIX?

MERIX has higher volatility (0.70%) compared to ARBFX (0.46%). In terms of maximum drawdown, ARBFX dropped -38.01% vs MERIX's -9.33%.

Which has better risk-adjusted returns?

MERIX currently has the higher Sharpe Ratio (3.32 vs 3.20), 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.