HMEZX vs. MERFX
HMEZX (NexPoint Merger Arbitrage Fund) and MERFX (The Merger Fund) are both Event Driven funds. Over the past 10 years, HMEZX returned 5.89%/yr vs 3.89%/yr for MERFX. At a 0.39 correlation, their price movements are largely independent. Both charge a 1.50% expense ratio.
Performance
HMEZX vs. MERFX - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, HMEZX achieves a 1.72% return, which is significantly higher than MERFX's 0.99% return. Over the past 10 years, HMEZX has outperformed MERFX with an annualized return of 5.89%, while MERFX has yielded a comparatively lower 3.89% annualized return.
HMEZX
- 1D
- -0.05%
- 1M
- 0.25%
- YTD
- 1.72%
- 6M
- 1.89%
- 1Y
- 5.55%
- 3Y*
- 6.92%
- 5Y*
- 4.89%
- 10Y*
- 5.89%
MERFX
- 1D
- 0.00%
- 1M
- 0.23%
- YTD
- 0.99%
- 6M
- 1.26%
- 1Y
- 4.60%
- 3Y*
- 6.03%
- 5Y*
- 2.86%
- 10Y*
- 3.89%
HMEZX vs. MERFX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HMEZX NexPoint Merger Arbitrage Fund | 1.72% | 6.30% | 7.42% | 4.10% | 2.70% | 5.37% | 8.46% | 8.10% | 5.92% | 5.48% |
MERFX The Merger Fund | 0.99% | 8.11% | 3.27% | 4.17% | 0.71% | -0.19% | 4.87% | 5.96% | 7.68% | 2.39% |
Correlation
The correlation between HMEZX and MERFX is 0.53, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.53 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.44 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.45 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.39 |
Correlation (All Time) Calculated using the full available price history since Jan 5, 2016 | 0.39 |
The correlation between HMEZX and MERFX shifts across timeframes, from 0.39 (10 years) to 0.53 (1 year), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
HMEZX vs. MERFX — Risk / Return Rank
HMEZX
MERFX
HMEZX vs. MERFX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for NexPoint Merger Arbitrage Fund (HMEZX) 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.
| HMEZX | MERFX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.25 | ||
| Sortino ratioReturn per unit of downside risk | +1.92 | ||
| Omega ratioGain probability vs. loss probability | 2.19 | 1.78 | +0.41 |
| Calmar ratioReturn relative to maximum drawdown | 10.25 | 9.13 | +1.11 |
| Martin ratioReturn relative to average drawdown | 58.26 | 42.15 | +16.12 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| HMEZX | MERFX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 4.56 | 3.31 | +1.25 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 2.92 | 0.84 | +2.09 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.56 | 1.04 | +0.52 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.59 | 0.68 | +0.91 |
Drawdowns
HMEZX vs. MERFX - Drawdown Comparison
The maximum HMEZX drawdown since its inception was -6.86%, smaller than the maximum MERFX drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for HMEZX and MERFX.
Loading charts...
Drawdown Indicators
| HMEZX | MERFX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.86% | -20.82% | +13.96% |
Max Drawdown (1Y)Largest decline over 1 year | -0.55% | -0.52% | -0.03% |
Max Drawdown (3Y)Largest decline over 3 years | -1.06% | -3.36% | +2.30% |
Max Drawdown (5Y)Largest decline over 5 years | -1.94% | -5.95% | +4.01% |
Max Drawdown (10Y)Largest decline over 10 years | -6.86% | -9.35% | +2.49% |
Current DrawdownCurrent decline from peak | -0.05% | -0.11% | +0.06% |
Average DrawdownAverage peak-to-trough decline | -0.37% | -2.67% | +2.30% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.10% | 0.11% | -0.01% |
Volatility
HMEZX vs. MERFX - Volatility Comparison
The current volatility for NexPoint Merger Arbitrage Fund (HMEZX) is 0.24%, while The Merger Fund (MERFX) has a volatility of 0.38%. This indicates that HMEZX experiences smaller price fluctuations and is considered to be less risky than MERFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| HMEZX | MERFX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.24% | 0.38% | -0.14% |
Volatility (6M)Calculated over the trailing 6-month period | 0.86% | 0.92% | -0.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.23% | 1.43% | -0.20% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.68% | 3.44% | -1.76% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.80% | 3.75% | +0.05% |
HMEZX vs. MERFX - Expense Ratio Comparison
Both HMEZX and MERFX have an expense ratio of 1.50%.
Dividends
HMEZX vs. MERFX - Dividend Comparison
HMEZX's dividend yield for the trailing twelve months is around 5.02%, less than MERFX's 7.34% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HMEZX NexPoint Merger Arbitrage Fund | 5.02% | 5.04% | 6.36% | 5.07% | 5.11% | 3.63% | 5.83% | 0.33% | 19.16% | 6.88% | 0.02% | 0.00% |
MERFX The Merger Fund | 7.34% | 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
HMEZX and MERFX have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MERFX has higher volatility (0.38%) compared to HMEZX (0.24%). In terms of maximum drawdown, HMEZX dropped -6.86% vs MERFX's -20.82%.
HMEZX currently has the higher Sharpe Ratio (4.56 vs 3.31), 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.
Find the right allocation for HMEZX and MERFX
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer