MERFX vs. GDL
MERFX (The Merger Fund) and GDL (The GDL Fund) are both Event Driven funds. Over the past 10 years, MERFX returned 3.98%/yr vs 3.99%/yr for GDL. At a 0.28 correlation, their price movements are largely independent. MERFX charges 1.50%/yr vs 0.03%/yr for GDL.
Performance
MERFX vs. GDL - Performance Comparison
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Returns By Period
In the year-to-date period, MERFX achieves a 1.33% return, which is significantly lower than GDL's 2.66% return. Both investments have delivered pretty close results over the past 10 years, with MERFX having a 3.98% annualized return and GDL not far ahead at 3.99%.
MERFX
- 1D
- 0.29%
- 1M
- 0.29%
- YTD
- 1.33%
- 6M
- 1.45%
- 1Y
- 4.90%
- 3Y*
- 6.05%
- 5Y*
- 3.08%
- 10Y*
- 3.98%
GDL
- 1D
- 0.00%
- 1M
- 1.32%
- YTD
- 2.66%
- 6M
- 2.78%
- 1Y
- 7.24%
- 3Y*
- 9.07%
- 5Y*
- 4.54%
- 10Y*
- 3.99%
MERFX vs. GDL - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MERFX The Merger Fund | 1.33% | 8.11% | 3.27% | 4.17% | 0.71% | -0.19% | 4.87% | 5.96% | 7.68% | 2.39% |
GDL The GDL Fund | 2.66% | 11.83% | 5.94% | 9.02% | -6.88% | 8.04% | -0.99% | 5.87% | -1.60% | 4.74% |
Correlation
The correlation between MERFX and GDL is 0.04, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.04 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.14 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.13 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.16 |
Correlation (All Time) Calculated using the full available price history since Apr 23, 2007 | 0.28 |
Over the past year, the correlation between MERFX and GDL has dropped to 0.04 - well below their long-term average of 0.28, suggesting their price drivers have been diverging.
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Return for Risk
MERFX vs. GDL — Risk / Return Rank
MERFX
GDL
MERFX vs. GDL - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for The Merger Fund (MERFX) and The GDL Fund (GDL). 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.
| MERFX | GDL | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.17 | ||
| Sortino ratioReturn per unit of downside risk | +4.40 | ||
| Omega ratioGain probability vs. loss probability | 1.76 | 1.18 | +0.58 |
| Calmar ratioReturn relative to maximum drawdown | 9.49 | 2.27 | +7.22 |
| Martin ratioReturn relative to average drawdown | 42.01 | 7.09 | +34.92 |
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Drawdowns
MERFX vs. GDL - Drawdown Comparison
The maximum MERFX drawdown since its inception was -20.82%, smaller than the maximum GDL drawdown of -38.74%. Use the drawdown chart below to compare losses from any high point for MERFX and GDL.
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Drawdown Indicators
| MERFX | GDL | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -20.82% | -38.74% | +17.92% |
Max Drawdown (1Y)Largest decline over 1 year | -0.52% | -3.21% | +2.69% |
Max Drawdown (3Y)Largest decline over 3 years | -3.36% | -6.00% | +2.64% |
Max Drawdown (5Y)Largest decline over 5 years | -4.94% | -9.48% | +4.54% |
Max Drawdown (10Y)Largest decline over 10 years | -9.35% | -38.74% | +29.39% |
Current DrawdownCurrent decline from peak | 0.00% | 0.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -2.66% | -4.91% | +2.25% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.12% | 1.02% | -0.90% |
Volatility
MERFX vs. GDL - Volatility Comparison
The current volatility for The Merger Fund (MERFX) is 0.74%, while The GDL Fund (GDL) has a volatility of 1.41%. This indicates that MERFX experiences smaller price fluctuations and is considered to be less risky than GDL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MERFX | GDL | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.74% | 1.41% | -0.67% |
Volatility (6M)Calculated over the trailing 6-month period | 1.13% | 4.98% | -3.85% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.55% | 7.15% | -5.60% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.45% | 8.62% | -5.17% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.75% | 12.97% | -9.22% |
MERFX vs. GDL - Expense Ratio Comparison
MERFX has a 1.50% expense ratio, which is higher than GDL's 0.03% expense ratio.
Dividends
MERFX vs. GDL - Dividend Comparison
MERFX's dividend yield for the trailing twelve months is around 7.32%, more than GDL's 5.68% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GDL The GDL Fund | 5.68% | 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 | 7.32% | 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
MERFX and GDL have a correlation of 0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
GDL has higher volatility (1.41%) compared to MERFX (0.74%). In terms of maximum drawdown, MERFX dropped -20.82% vs GDL's -38.74%.
MERFX currently has the higher Sharpe Ratio (3.18 vs 1.02), 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.
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