MERFX vs. VKSFX

Last updated Jun 4, 2026

MERFX (The Merger Fund) and VKSFX (Virtus KAR Small-Mid Cap Value Fund) are both mutual funds - MERFX is a Event Driven fund managed by Virtus, while VKSFX is a Mid Cap Blend Equities fund managed by Virtus. Over the past 3 years, MERFX returned 6.03%/yr vs 5.61%/yr for VKSFX. At a 0.38 correlation, their price movements are largely independent. MERFX charges 1.50%/yr vs 0.94%/yr for VKSFX.

Performance

MERFX vs. VKSFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in The Merger Fund (MERFX) and Virtus KAR Small-Mid Cap Value Fund (VKSFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MERFX achieves a 0.99% return, which is significantly higher than VKSFX's -2.19% return.

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%

VKSFX

• 1D: 0.20%
• 1M: -1.41%
• YTD: -2.19%
• 6M: -2.84%
• 1Y: -4.17%
• 3Y*: 5.61%
• 5Y*: —
• 10Y*: —

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

MERFX vs. VKSFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
MERFX The Merger Fund	0.99%	8.11%	3.27%	4.17%	0.71%	2.27%
VKSFX Virtus KAR Small-Mid Cap Value Fund	-2.19%	-3.61%	10.24%	16.94%	-20.43%	4.02%

Correlation

The correlation between MERFX and VKSFX is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.28
Correlation (3Y) Calculated over the trailing 3-year period	0.31
Correlation (All Time) Calculated using the full available price history since Aug 5, 2021	0.38

Return for Risk

MERFX vs. VKSFX — Risk / Return Rank

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

MERFX

MERFX Risk / Return Rank: 97
MERFX Sharpe Ratio Rank: 94
MERFX Sortino Ratio Rank: 98
MERFX Omega Ratio Rank: 95
MERFX Calmar Ratio Rank: 98
MERFX Martin Ratio Rank: 99

VKSFX

VKSFX Risk / Return Rank: 2
VKSFX Sharpe Ratio Rank: 2
VKSFX Sortino Ratio Rank: 2
VKSFX Omega Ratio Rank: 2
VKSFX Calmar Ratio Rank: 2
VKSFX Martin Ratio Rank: 2

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.

MERFX vs. VKSFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for The Merger Fund (MERFX) and Virtus KAR Small-Mid Cap Value Fund (VKSFX). 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.

	MERFX	VKSFX	Difference
Sharpe ratio: Return per unit of total volatility	3.31	-0.22	+3.53
Sortino ratio: Return per unit of downside risk	6.16	-0.23	+6.39
Omega ratio: Gain probability vs. loss probability	1.78	0.98	+0.80
Calmar ratio: Return relative to maximum drawdown	9.13	-0.28	+9.41
Martin ratio: Return relative to average drawdown	42.15	-0.56	+42.71
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MERFX vs. VKSFX - Sharpe Ratio Comparison

The current MERFX Sharpe Ratio is 3.31, which is higher than the VKSFX Sharpe Ratio of -0.22. The chart below compares the historical Sharpe Ratios of MERFX and VKSFX, 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

	MERFX	VKSFX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.31	-0.22	+3.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.84	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.04	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.68	0.01	+0.68

Drawdowns

MERFX vs. VKSFX - Drawdown Comparison

The maximum MERFX drawdown since its inception was -20.82%, smaller than the maximum VKSFX drawdown of -25.46%. Use the drawdown chart below to compare losses from any high point for MERFX and VKSFX.

Drawdown Indicators

	MERFX	VKSFX	Difference
Max Drawdown Largest peak-to-trough decline	-20.82%	-25.46%	+4.64%
Max Drawdown (1Y) Largest decline over 1 year	-0.52%	-11.36%	+10.84%
Max Drawdown (3Y) Largest decline over 3 years	-3.36%	-20.84%	+17.48%
Max Drawdown (5Y) Largest decline over 5 years	-5.95%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-9.35%	—	—
Current Drawdown Current decline from peak	-0.11%	-13.23%	+13.12%
Average Drawdown Average peak-to-trough decline	-2.67%	-10.66%	+7.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.11%	5.58%	-5.47%

Volatility

MERFX vs. VKSFX - Volatility Comparison

The current volatility for The Merger Fund (MERFX) is 0.38%, while Virtus KAR Small-Mid Cap Value Fund (VKSFX) has a volatility of 3.56%. This indicates that MERFX experiences smaller price fluctuations and is considered to be less risky than VKSFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MERFX	VKSFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.38%	3.56%	-3.18%
Volatility (6M) Calculated over the trailing 6-month period	0.92%	10.21%	-9.29%
Volatility (1Y) Calculated over the trailing 1-year period	1.43%	14.36%	-12.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.44%	18.16%	-14.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.75%	18.16%	-14.41%

MERFX vs. VKSFX - Expense Ratio Comparison

MERFX has a 1.50% expense ratio, which is higher than VKSFX's 0.94% expense ratio.

Dividends

MERFX vs. VKSFX - Dividend Comparison

MERFX's dividend yield for the trailing twelve months is around 7.34%, more than VKSFX's 0.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VKSFX Virtus KAR Small-Mid Cap Value Fund	0.24%	0.23%	0.54%	0.70%	0.46%	0.48%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MERFX and VKSFX in my portfolio?

MERFX and VKSFX have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MERFX or VKSFX?

VKSFX has higher volatility (3.56%) compared to MERFX (0.38%). In terms of maximum drawdown, MERFX dropped -20.82% vs VKSFX's -25.46%.

Which has better risk-adjusted returns?

MERFX currently has the higher Sharpe Ratio (3.31 vs -0.22), 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.