HMEZX vs. VBR

Last updated Jun 3, 2026

HMEZX (NexPoint Merger Arbitrage Fund) and VBR (Vanguard Small-Cap Value ETF) are both funds - HMEZX is a Event Driven fund managed by Highland Funds, while VBR is a Small Cap Value Equities fund tracking the CRSP US Small Cap Value Index. Over the past 10 years, HMEZX returned 5.90%/yr vs 10.58%/yr for VBR. At a 0.26 correlation, their price movements are largely independent. HMEZX charges 1.50%/yr vs 0.05%/yr for VBR.

Performance

HMEZX vs. VBR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in NexPoint Merger Arbitrage Fund (HMEZX) and Vanguard Small-Cap Value ETF (VBR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HMEZX achieves a 1.78% return, which is significantly lower than VBR's 12.11% return. Over the past 10 years, HMEZX has underperformed VBR with an annualized return of 5.90%, while VBR has yielded a comparatively higher 10.58% annualized return.

HMEZX

• 1D: 0.05%
• 1M: 0.20%
• YTD: 1.78%
• 6M: 2.00%
• 1Y: 5.65%
• 3Y*: 6.94%
• 5Y*: 4.89%
• 10Y*: 5.90%

VBR

• 1D: 0.86%
• 1M: 1.86%
• YTD: 12.11%
• 6M: 13.63%
• 1Y: 27.83%
• 3Y*: 16.59%
• 5Y*: 8.08%
• 10Y*: 10.58%

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

HMEZX vs. VBR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HMEZX NexPoint Merger Arbitrage Fund	1.78%	6.30%	7.42%	4.10%	2.70%	5.37%	8.46%	8.10%	5.92%	5.48%
VBR Vanguard Small-Cap Value ETF	12.11%	9.09%	12.40%	16.00%	-9.38%	28.08%	5.90%	22.78%	-12.28%	11.81%

Correlation

The correlation between HMEZX and VBR is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.36
Correlation (10Y) Calculated over the trailing 10-year period	0.26
Correlation (All Time) Calculated using the full available price history since Jan 5, 2016	0.26

The correlation between HMEZX and VBR shifts across timeframes, from 0.26 (10 years) to 0.36 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

HMEZX vs. VBR — Risk / Return Rank

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

HMEZX

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

VBR

VBR Risk / Return Rank: 56
VBR Sharpe Ratio Rank: 53
VBR Sortino Ratio Rank: 56
VBR Omega Ratio Rank: 51
VBR Calmar Ratio Rank: 62
VBR Martin Ratio Rank: 61

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.

HMEZX vs. VBR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for NexPoint Merger Arbitrage Fund (HMEZX) and Vanguard Small-Cap Value ETF (VBR). 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	VBR	Difference
Sharpe ratio Return per unit of total volatility	4.66	1.84	+2.81
Sortino ratio Return per unit of downside risk	8.25	2.70	+5.56
Omega ratio Gain probability vs. loss probability	2.23	1.32	+0.91
Calmar ratio Return relative to maximum drawdown	10.30	3.10	+7.20
Martin ratio Return relative to average drawdown	58.72	10.94	+47.78
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HMEZX vs. VBR - Sharpe Ratio Comparison

The current HMEZX Sharpe Ratio is 4.66, which is higher than the VBR Sharpe Ratio of 1.84. The chart below compares the historical Sharpe Ratios of HMEZX and VBR, 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

	HMEZX	VBR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.66	1.84	+2.81
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	2.92	0.41	+2.51
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.56	0.49	+1.07
Sharpe Ratio (All Time) Calculated using the full available price history	1.60	0.42	+1.18

Drawdowns

HMEZX vs. VBR - Drawdown Comparison

The maximum HMEZX drawdown since its inception was -6.86%, smaller than the maximum VBR drawdown of -61.98%. Use the drawdown chart below to compare losses from any high point for HMEZX and VBR.

Drawdown Indicators

	HMEZX	VBR	Difference
Max Drawdown Largest peak-to-trough decline	-6.86%	-61.98%	+55.12%
Max Drawdown (1Y) Largest decline over 1 year	-0.55%	-8.85%	+8.30%
Max Drawdown (3Y) Largest decline over 3 years	-1.06%	-24.19%	+23.13%
Max Drawdown (5Y) Largest decline over 5 years	-1.94%	-24.19%	+22.25%
Max Drawdown (10Y) Largest decline over 10 years	-6.86%	-45.28%	+38.42%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.37%	-8.27%	+7.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.10%	2.50%	-2.40%

Volatility

HMEZX vs. VBR - Volatility Comparison

The current volatility for NexPoint Merger Arbitrage Fund (HMEZX) is 0.30%, while Vanguard Small-Cap Value ETF (VBR) has a volatility of 4.07%. This indicates that HMEZX experiences smaller price fluctuations and is considered to be less risky than VBR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HMEZX	VBR	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.30%	4.07%	-3.77%
Volatility (6M) Calculated over the trailing 6-month period	0.86%	10.46%	-9.60%
Volatility (1Y) Calculated over the trailing 1-year period	1.23%	15.17%	-13.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.68%	19.77%	-18.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.80%	21.74%	-17.94%

HMEZX vs. VBR - Expense Ratio Comparison

HMEZX has a 1.50% expense ratio, which is higher than VBR's 0.05% expense ratio.

Dividends

HMEZX vs. VBR - Dividend Comparison

HMEZX's dividend yield for the trailing twelve months is around 5.02%, more than VBR's 1.75% 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%
VBR Vanguard Small-Cap Value ETF	1.75%	1.95%	1.98%	2.12%	2.03%	1.75%	1.68%	2.06%	2.35%	1.79%	1.77%	1.99%

Frequently Asked Questions

Can I hold both HMEZX and VBR in my portfolio?

HMEZX and VBR have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HMEZX or VBR?

VBR has higher volatility (4.07%) compared to HMEZX (0.30%). In terms of maximum drawdown, HMEZX dropped -6.86% vs VBR's -61.98%.

Which has better risk-adjusted returns?

HMEZX currently has the higher Sharpe Ratio (4.66 vs 1.84), 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.