MERIX vs. ARBFX

Last updated Jun 23, 2026

MERIX (The Merger Fund Class I) and ARBFX (The Arbitrage Fund) are both Event Driven funds. Over the past 10 years, MERIX returned 4.21%/yr vs 3.24%/yr for ARBFX. A 0.61 correlation means they provide meaningful diversification when combined. MERIX charges 1.32%/yr vs 1.43%/yr for ARBFX.

Performance

MERIX vs. ARBFX - Performance Comparison

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

Returns By Period

In the year-to-date period, MERIX achieves a 1.24% return, which is significantly higher than ARBFX's 1.12% return. Over the past 10 years, MERIX has outperformed ARBFX with an annualized return of 4.21%, while ARBFX has yielded a comparatively lower 3.24% annualized return.

MERIX

• 1D: 0.17%
• 1M: 0.12%
• YTD: 1.24%
• 6M: 1.36%
• 1Y: 4.97%
• 3Y*: 6.35%
• 5Y*: 3.29%
• 10Y*: 4.21%

ARBFX

• 1D: 0.15%
• 1M: 0.07%
• YTD: 1.12%
• 6M: 1.19%
• 1Y: 5.93%
• 3Y*: 6.36%
• 5Y*: 2.96%
• 10Y*: 3.24%

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

MERIX vs. ARBFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MERIX The Merger Fund Class I	1.24%	8.41%	3.54%	4.51%	1.01%	0.10%	5.14%	6.32%	7.98%	2.74%
ARBFX The Arbitrage Fund	1.12%	8.01%	2.61%	5.94%	-1.02%	0.85%	5.42%	3.57%	2.12%	2.59%

Correlation

The correlation between MERIX and ARBFX is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.42
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Aug 5, 2013	0.61

The correlation between MERIX and ARBFX shifts across timeframes, from 0.42 (1 year) to 0.67 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

MERIX vs. ARBFX — Risk / Return Rank

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

MERIX

MERIX Risk / Return Rank: 98
MERIX Sharpe Ratio Rank: 97
MERIX Sortino Ratio Rank: 98
MERIX Omega Ratio Rank: 96
MERIX Calmar Ratio Rank: 99
MERIX Martin Ratio Rank: 99

ARBFX

ARBFX Risk / Return Rank: 97
ARBFX Sharpe Ratio Rank: 96
ARBFX Sortino Ratio Rank: 97
ARBFX Omega Ratio Rank: 95
ARBFX Calmar Ratio Rank: 97
ARBFX Martin Ratio Rank: 98

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.

MERIX vs. ARBFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for The Merger Fund Class I (MERIX) and The Arbitrage Fund (ARBFX). 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.

	MERIX	ARBFX	Difference
Sharpe ratio: Return per unit of total volatility	3.32	3.20	+0.12
Sortino ratio: Return per unit of downside risk	6.16	5.55	+0.60
Omega ratio: Gain probability vs. loss probability	1.80	1.74	+0.06
Calmar ratio: Return relative to maximum drawdown	10.67	6.74	+3.94
Martin ratio: Return relative to average drawdown	45.87	29.71	+16.16

MERIX vs. ARBFX - Sharpe Ratio Comparison

The current MERIX Sharpe Ratio is 3.32, which is comparable to the ARBFX Sharpe Ratio of 3.20. The chart below compares the historical Sharpe Ratios of MERIX and ARBFX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MERIX vs. ARBFX - Drawdown Comparison

The maximum MERIX drawdown since its inception was -9.33%, smaller than the maximum ARBFX drawdown of -38.01%. Use the drawdown chart below to compare losses from any high point for MERIX and ARBFX.

Drawdown Indicators

	MERIX	ARBFX	Difference
Max Drawdown Largest peak-to-trough decline	-9.33%	-38.01%	+28.68%
Max Drawdown (1Y) Largest decline over 1 year	-0.47%	-0.88%	+0.41%
Max Drawdown (3Y) Largest decline over 3 years	-3.85%	-2.26%	-1.59%
Max Drawdown (5Y) Largest decline over 5 years	-4.72%	-6.87%	+2.15%
Max Drawdown (10Y) Largest decline over 10 years	-9.33%	-11.90%	+2.57%
Current Drawdown Current decline from peak	-0.12%	-0.07%	-0.05%
Average Drawdown Average peak-to-trough decline	-1.02%	-2.36%	+1.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.11%	0.20%	-0.09%

Volatility

MERIX vs. ARBFX - Volatility Comparison

The Merger Fund Class I (MERIX) has a higher volatility of 0.70% compared to The Arbitrage Fund (ARBFX) at 0.46%. This indicates that MERIX's price experiences larger fluctuations and is considered to be riskier than ARBFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MERIX	ARBFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.70%	0.46%	+0.24%
Volatility (6M) Calculated over the trailing 6-month period	1.08%	1.14%	-0.06%
Volatility (1Y) Calculated over the trailing 1-year period	1.51%	1.86%	-0.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.64%	3.64%	0.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.84%	4.42%	-0.58%

MERIX vs. ARBFX - Expense Ratio Comparison

MERIX has a 1.32% expense ratio, which is lower than ARBFX's 1.43% expense ratio.

Dividends

MERIX vs. ARBFX - Dividend Comparison

MERIX's dividend yield for the trailing twelve months is around 7.86%, more than ARBFX's 3.55% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARBFX The Arbitrage Fund	3.55%	3.59%	0.94%	1.92%	3.67%	0.53%	6.94%	2.12%	1.71%	3.55%	0.96%	2.36%
MERIX The Merger Fund Class I	7.86%	7.95%	3.75%	2.91%	4.75%	0.27%	3.64%	1.34%	4.85%	0.98%	0.89%	1.63%

Frequently Asked Questions

Can I hold both MERIX and ARBFX in my portfolio?

MERIX and ARBFX have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MERIX or ARBFX?

MERIX has higher volatility (0.70%) compared to ARBFX (0.46%). In terms of maximum drawdown, MERIX dropped -9.33% vs ARBFX's -38.01%.

Which has better risk-adjusted returns?

MERIX currently has the higher Sharpe Ratio (3.32 vs 3.20), 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.