ARBNX vs. MERIX

Last updated Jun 4, 2026

ARBNX (The Arbitrage Fund Class Institutional) and MERIX (The Merger Fund Class I) are both Event Driven funds. Over the past 10 years, ARBNX returned 3.48%/yr vs 4.19%/yr for MERIX. A 0.61 correlation means they provide meaningful diversification when combined. ARBNX charges 1.49%/yr vs 1.32%/yr for MERIX.

Performance

ARBNX vs. MERIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in The Arbitrage Fund Class Institutional (ARBNX) 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, ARBNX achieves a 1.21% return, which is significantly higher than MERIX's 1.12% return. Over the past 10 years, ARBNX has underperformed MERIX with an annualized return of 3.48%, while MERIX has yielded a comparatively higher 4.19% annualized return.

ARBNX

• 1D: 0.07%
• 1M: 0.21%
• YTD: 1.21%
• 6M: 1.86%
• 1Y: 6.43%
• 3Y*: 6.73%
• 5Y*: 3.10%
• 10Y*: 3.48%

MERIX

• 1D: 0.00%
• 1M: 0.23%
• YTD: 1.12%
• 6M: 1.41%
• 1Y: 4.91%
• 3Y*: 6.35%
• 5Y*: 3.16%
• 10Y*: 4.19%

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

ARBNX vs. MERIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ARBNX The Arbitrage Fund Class Institutional	1.21%	8.29%	2.95%	6.05%	-0.67%	1.05%	5.71%	3.84%	2.33%	2.87%
MERIX The Merger Fund Class I	1.12%	8.41%	3.54%	4.51%	1.01%	0.10%	5.14%	6.32%	7.98%	2.74%

Correlation

The correlation between ARBNX and MERIX is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Aug 6, 2013	0.61

Over the past year, the correlation between ARBNX and MERIX has dropped to 0.41 - well below their long-term average of 0.61, suggesting their price drivers have been diverging.

Return for Risk

ARBNX vs. MERIX — Risk / Return Rank

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

ARBNX

ARBNX Risk / Return Rank: 97
ARBNX Sharpe Ratio Rank: 96
ARBNX Sortino Ratio Rank: 98
ARBNX Omega Ratio Rank: 96
ARBNX Calmar Ratio Rank: 97
ARBNX 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.

ARBNX vs. MERIX - Risk-Adjusted Trends Comparison

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

	ARBNX	MERIX	Difference
Sharpe ratio Return per unit of total volatility	3.56	3.61	-0.05
Sortino ratio Return per unit of downside risk	6.35	6.97	-0.62
Omega ratio Gain probability vs. loss probability	1.84	1.87	-0.03
Calmar ratio Return relative to maximum drawdown	7.20	10.79	-3.59
Martin ratio Return relative to average drawdown	34.43	48.64	-14.21
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ARBNX vs. MERIX - Sharpe Ratio Comparison

The current ARBNX Sharpe Ratio is 3.56, which is comparable to the MERIX Sharpe Ratio of 3.61. The chart below compares the historical Sharpe Ratios of ARBNX 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.

Sharpe Ratios by Period

	ARBNX	MERIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.56	3.61	-0.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.86	0.87	-0.01
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.79	1.09	-0.30
Sharpe Ratio (All Time) Calculated using the full available price history	0.58	0.94	-0.37

Drawdowns

ARBNX vs. MERIX - Drawdown Comparison

The maximum ARBNX drawdown since its inception was -14.42%, which is greater than MERIX's maximum drawdown of -9.33%. Use the drawdown chart below to compare losses from any high point for ARBNX and MERIX.

Drawdown Indicators

	ARBNX	MERIX	Difference
Max Drawdown Largest peak-to-trough decline	-14.42%	-9.33%	-5.09%
Max Drawdown (1Y) Largest decline over 1 year	-0.92%	-0.47%	-0.45%
Max Drawdown (3Y) Largest decline over 3 years	-2.24%	-3.85%	+1.61%
Max Drawdown (5Y) Largest decline over 5 years	-7.44%	-5.68%	-1.76%
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	-1.22%	-1.02%	-0.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.19%	0.10%	+0.09%

Volatility

ARBNX vs. MERIX - Volatility Comparison

The current volatility for The Arbitrage Fund Class Institutional (ARBNX) is 0.29%, while The Merger Fund Class I (MERIX) has a volatility of 0.34%. This indicates that ARBNX 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

	ARBNX	MERIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.29%	0.34%	-0.05%
Volatility (6M) Calculated over the trailing 6-month period	1.14%	0.89%	+0.25%
Volatility (1Y) Calculated over the trailing 1-year period	1.86%	1.40%	+0.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.63%	3.64%	-0.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.42%	3.84%	+0.58%

ARBNX vs. MERIX - Expense Ratio Comparison

ARBNX has a 1.49% expense ratio, which is higher than MERIX's 1.32% expense ratio.

Dividends

ARBNX vs. MERIX - Dividend Comparison

ARBNX's dividend yield for the trailing twelve months is around 3.68%, less than MERIX's 7.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARBNX The Arbitrage Fund Class Institutional	3.68%	3.72%	1.18%	2.11%	3.85%	0.51%	6.70%	2.12%	1.93%	3.80%	0.93%	2.30%
MERIX The Merger Fund Class I	7.87%	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 ARBNX and MERIX in my portfolio?

ARBNX and MERIX have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ARBNX or MERIX?

MERIX has higher volatility (0.34%) compared to ARBNX (0.29%). In terms of maximum drawdown, ARBNX dropped -14.42% vs MERIX's -9.33%.

Which has better risk-adjusted returns?

MERIX currently has the higher Sharpe Ratio (3.61 vs 3.56), 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.