GDL vs. MERFX

Last updated Apr 1, 2026

Compare and contrast key facts about The GDL Fund (GDL) and The Merger Fund (MERFX).

GDL is managed by Gabelli. It was launched on Jan 31, 2007. MERFX is managed by Virtus. It was launched on Jan 30, 1989.

Performance

GDL vs. MERFX - Performance Comparison

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

GDL vs. MERFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
GDL The GDL Fund	-0.23%	11.83%	5.94%	9.02%	-6.88%	8.04%	-0.99%	5.87%	-1.60%	4.74%
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

In the year-to-date period, GDL achieves a -0.23% return, which is significantly lower than MERFX's 0.46% return. Both investments have delivered pretty close results over the past 10 years, with GDL having a 3.75% annualized return and MERFX not far ahead at 3.88%.

GDL

• 1D: 0.18%
• 1M: -1.51%
• YTD: -0.23%
• 6M: 0.24%
• 1Y: 7.09%
• 3Y*: 8.24%
• 5Y*: 4.52%
• 10Y*: 3.75%

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)

GDL vs. MERFX - Expense Ratio Comparison

GDL has a 0.03% expense ratio, which is lower than MERFX's 1.50% expense ratio.

MERFX

The Merger Fund

GDL

The GDL Fund

Return for Risk

GDL vs. MERFX — Risk / Return Rank

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

GDL

GDL Risk / Return Rank: 36
GDL Sharpe Ratio Rank: 31
GDL Sortino Ratio Rank: 25
GDL Omega Ratio Rank: 25
GDL Calmar Ratio Rank: 53
GDL Martin Ratio Rank: 47

MERFX

MERFX Risk / Return Rank: 99
MERFX Sharpe Ratio Rank: 100
MERFX Sortino Ratio Rank: 99
MERFX Omega Ratio Rank: 98
MERFX Calmar Ratio Rank: 99
MERFX Martin Ratio Rank: 100

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.

GDL vs. MERFX - Risk-Adjusted Trends Comparison

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

	GDL	MERFX	Difference
Sharpe ratio Return per unit of total volatility	0.73	4.24	-3.52
Sortino ratio Return per unit of downside risk	0.99	8.05	-7.06
Omega ratio Gain probability vs. loss probability	1.14	2.09	-0.95
Calmar ratio Return relative to maximum drawdown	1.27	12.42	-11.15
Martin ratio Return relative to average drawdown	4.75	58.81	-54.05
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GDL vs. MERFX - Sharpe Ratio Comparison

The current GDL Sharpe Ratio is 0.73, which is lower than the MERFX Sharpe Ratio of 4.24. The chart below compares the historical Sharpe Ratios of GDL 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.

Sharpe Ratios by Period

	GDL	MERFX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.73	4.24	-3.52
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.53	0.90	-0.37
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.29	1.03	-0.74
Sharpe Ratio (All Time) Calculated using the full available price history	0.23	0.68	-0.46

Correlation

The correlation between GDL and MERFX is 0.28, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.

Dividends

GDL vs. MERFX - Dividend Comparison

GDL's dividend yield for the trailing twelve months is around 5.76%, less than MERFX's 7.38% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GDL The GDL Fund	5.76%	5.67%	5.99%	5.97%	6.12%	5.38%	5.28%	4.30%	4.36%	5.96%	6.50%	6.39%
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

GDL vs. MERFX - Drawdown Comparison

The maximum GDL drawdown since its inception was -38.74%, which is greater than MERFX's maximum drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for GDL and MERFX.

Drawdown Indicators

	GDL	MERFX	Difference
Max Drawdown Largest peak-to-trough decline	-38.74%	-20.82%	-17.92%
Max Drawdown (1Y) Largest decline over 1 year	-5.21%	-0.52%	-4.69%
Max Drawdown (5Y) Largest decline over 5 years	-9.48%	-5.95%	-3.53%
Max Drawdown (10Y) Largest decline over 10 years	-38.74%	-9.35%	-29.39%
Current Drawdown Current decline from peak	-2.15%	-0.17%	-1.98%
Average Drawdown Average peak-to-trough decline	-4.96%	-2.68%	-2.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.39%	0.11%	+1.28%

Volatility

GDL vs. MERFX - Volatility Comparison

The GDL Fund (GDL) has a higher volatility of 2.56% compared to The Merger Fund (MERFX) at 0.47%. This indicates that GDL'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

	GDL	MERFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.56%	0.47%	+2.09%
Volatility (6M) Calculated over the trailing 6-month period	5.41%	1.00%	+4.41%
Volatility (1Y) Calculated over the trailing 1-year period	9.83%	1.53%	+8.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.62%	3.45%	+5.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.97%	3.76%	+9.21%