MRGR vs. IAI

Last updated Jun 4, 2026

MRGR (Proshares Merger ETF) and IAI (iShares U.S. Broker-Dealers & Securities Exchanges ETF) are both exchange-traded funds - MRGR is a Hedge Fund fund tracking the S&P Merger Arbitrage Index, while IAI is a Financials Equities fund tracking the DJ US Select / Investment Services. Both are passively managed. Over the past 10 years, MRGR returned 3.47%/yr vs 18.46%/yr for IAI. At a 0.19 correlation, their price movements are largely independent. MRGR charges 0.75%/yr vs 0.41%/yr for IAI.

Performance

MRGR vs. IAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Proshares Merger ETF (MRGR) and iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MRGR achieves a 1.83% return, which is significantly higher than IAI's 0.24% return. Over the past 10 years, MRGR has underperformed IAI with an annualized return of 3.47%, while IAI has yielded a comparatively higher 18.46% annualized return.

MRGR

• 1D: -0.33%
• 1M: 0.80%
• YTD: 1.83%
• 6M: 1.48%
• 1Y: 11.14%
• 3Y*: 8.65%
• 5Y*: 3.99%
• 10Y*: 3.47%

IAI

• 1D: -1.71%
• 1M: 1.75%
• YTD: 0.24%
• 6M: 1.73%
• 1Y: 16.52%
• 3Y*: 27.84%
• 5Y*: 13.43%
• 10Y*: 18.46%

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

MRGR vs. IAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MRGR Proshares Merger ETF	1.83%	11.99%	5.32%	4.94%	-4.81%	6.58%	1.99%	4.31%	3.42%	2.08%
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	0.24%	25.80%	34.37%	15.27%	-10.87%	40.48%	18.61%	24.26%	-9.47%	28.86%

Correlation

The correlation between MRGR and IAI is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (3Y) Calculated over the trailing 3-year period	0.21
Correlation (5Y) Calculated over the trailing 5-year period	0.30
Correlation (10Y) Calculated over the trailing 10-year period	0.23
Correlation (All Time) Calculated using the full available price history since Dec 14, 2012	0.19

The correlation between MRGR and IAI shifts across timeframes, from 0.19 (all time) to 0.30 (5 years), reflecting how their relationship changes across market environments.

MRGR vs. IAI - Sectors Allocation Comparison

Sectors	MRGR	IAI
Healthcare	22.7%	-
Industrials	17.6%	-
Financial Services	12.7%	99.9%
Real Estate	12.6%	-
Basic Materials	5.8%	-
Energy	5.6%	-
Utilities	5.4%	-
Technology	5.1%	0.1%
Communication Services	4.9%	-
Consumer Cyclical	4.9%	-
Consumer Defensive	2.7%	-

Return for Risk

MRGR vs. IAI — Risk / Return Rank

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

MRGR

MRGR Risk / Return Rank: 90
MRGR Sharpe Ratio Rank: 82
MRGR Sortino Ratio Rank: 93
MRGR Omega Ratio Rank: 88
MRGR Calmar Ratio Rank: 95
MRGR Martin Ratio Rank: 92

IAI

IAI Risk / Return Rank: 23
IAI Sharpe Ratio Rank: 24
IAI Sortino Ratio Rank: 23
IAI Omega Ratio Rank: 23
IAI Calmar Ratio Rank: 22
IAI Martin Ratio Rank: 23

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.

MRGR vs. IAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Proshares Merger ETF (MRGR) and iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI). 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.

	MRGR	IAI	Difference
Sharpe ratio: Return per unit of total volatility	2.72	0.87	+1.85
Sortino ratio: Return per unit of downside risk	4.63	1.27	+3.36
Omega ratio: Gain probability vs. loss probability	1.56	1.16	+0.40
Calmar ratio: Return relative to maximum drawdown	8.65	1.00	+7.64
Martin ratio: Return relative to average drawdown	23.71	2.88	+20.83
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MRGR vs. IAI - Sharpe Ratio Comparison

The current MRGR Sharpe Ratio is 2.72, which is higher than the IAI Sharpe Ratio of 0.87. The chart below compares the historical Sharpe Ratios of MRGR and IAI, 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

	MRGR	IAI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.72	0.87	+1.85
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.05	0.63	+0.42
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.68	0.81	-0.13
Sharpe Ratio (All Time) Calculated using the full available price history	0.36	0.28	+0.08

Drawdowns

MRGR vs. IAI - Drawdown Comparison

The maximum MRGR drawdown since its inception was -13.23%, smaller than the maximum IAI drawdown of -75.46%. Use the drawdown chart below to compare losses from any high point for MRGR and IAI.

Drawdown Indicators

	MRGR	IAI	Difference
Max Drawdown Largest peak-to-trough decline	-13.23%	-75.46%	+62.23%
Max Drawdown (1Y) Largest decline over 1 year	-1.29%	-16.52%	+15.23%
Max Drawdown (3Y) Largest decline over 3 years	-2.10%	-23.14%	+21.04%
Max Drawdown (5Y) Largest decline over 5 years	-8.40%	-28.84%	+20.44%
Max Drawdown (10Y) Largest decline over 10 years	-13.23%	-40.38%	+27.15%
Current Drawdown Current decline from peak	-0.33%	-5.57%	+5.24%
Average Drawdown Average peak-to-trough decline	-3.86%	-22.66%	+18.80%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.47%	5.75%	-5.28%

Volatility

MRGR vs. IAI - Volatility Comparison

The current volatility for Proshares Merger ETF (MRGR) is 1.08%, while iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) has a volatility of 4.48%. This indicates that MRGR experiences smaller price fluctuations and is considered to be less risky than IAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MRGR	IAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.08%	4.48%	-3.40%
Volatility (6M) Calculated over the trailing 6-month period	2.95%	14.92%	-11.97%
Volatility (1Y) Calculated over the trailing 1-year period	4.11%	19.05%	-14.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.82%	21.42%	-17.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.15%	22.84%	-17.69%

MRGR vs. IAI - Expense Ratio Comparison

MRGR has a 0.75% expense ratio, which is higher than IAI's 0.41% expense ratio.

Dividends

MRGR vs. IAI - Dividend Comparison

MRGR's dividend yield for the trailing twelve months is around 2.97%, more than IAI's 1.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	1.08%	0.95%	1.05%	1.80%	2.14%	1.31%	1.55%	1.52%	1.58%	1.37%	1.49%	1.31%
MRGR Proshares Merger ETF	2.97%	3.12%	3.21%	2.11%	0.61%	0.59%	0.00%	0.78%	1.39%	0.36%	0.74%	0.34%

Frequently Asked Questions

Can I hold both MRGR and IAI in my portfolio?

MRGR and IAI have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MRGR or IAI?

IAI has higher volatility (4.48%) compared to MRGR (1.08%). In terms of maximum drawdown, MRGR dropped -13.23% vs IAI's -75.46%.

Which ETF is better, MRGR or IAI?

On 10-year performance, IAI leads with 18.46% vs 3.47% for MRGR. On fees, IAI is cheaper at 0.41% per year. On volatility, MRGR has been the lower-risk option at 1.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MRGR or IAI?

Over the 10-year period, IAI has performed better with a 18.46% return vs 3.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MRGR or IAI?

IAI is cheaper with a 0.41% expense ratio, compared with 0.75% for MRGR.

Which ETF pays a higher dividend yield, MRGR or IAI?

MRGR has the higher dividend yield at 2.97%, compared with 1.08% for IAI.

What is the main difference between MRGR and IAI?

MRGR is categorized as Hedge Fund, while IAI is Financials Equities. MRGR tracks S&P Merger Arbitrage Index, while IAI tracks DJ US Select / Investment Services. They also come from different issuers: ProShares and iShares. Their fees differ too: 0.75% for MRGR and 0.41% for IAI.

Which has better risk-adjusted returns?

MRGR currently has the higher Sharpe Ratio (2.72 vs 0.87), 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.