NARAX vs. MERFX

Last updated Aug 1, 2026

NARAX (Virtus Newfleet Multi-Sector Short Term Bond Fund) and MERFX (The Merger Fund) are both mutual funds - NARAX is a Short-Term Bond fund managed by Virtus, while MERFX is a Event Driven fund managed by Virtus. Over the past 10 years, NARAX returned 2.67%/yr vs 3.94%/yr for MERFX. Their 0.09 correlation means their historical movements had little consistent relationship. NARAX charges 0.90%/yr vs 1.50%/yr for MERFX.

Performance

NARAX vs. MERFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Virtus Newfleet Multi-Sector Short Term Bond Fund (NARAX) and The Merger Fund (MERFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NARAX achieves a 1.07% return, which is significantly lower than MERFX's 1.51% return. Over the past 10 years, NARAX has underperformed MERFX with an annualized return of 2.67%, while MERFX has yielded a comparatively higher 3.94% annualized return.

NARAX

• 1D: 0.00%
• 1M: -0.44%
• 6M: 0.70%
• YTD: 1.07%
• 1Y: 3.42%
• 3Y*: 5.23%
• 5Y*: 2.44%
• 10Y*: 2.67%
• ALL TIME*: 4.77%

MERFX

• 1D: 0.00%
• 1M: 0.06%
• 6M: 1.45%
• YTD: 1.51%
• 1Y: 3.75%
• 3Y*: 5.92%
• 5Y*: 3.70%
• 10Y*: 3.94%
• ALL TIME*: 4.25%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
MERFX The Merger Fund	$0.00	$0.00	$0.00
NARAX Virtus Newfleet Multi-Sector Short Term Bond Fund	$0.00	$0.00	$0.00

NARAX vs. MERFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NARAX Virtus Newfleet Multi-Sector Short Term Bond Fund	1.07%	6.05%	5.23%	6.88%	-5.99%	0.18%	4.30%	6.15%	-0.77%	3.67%
MERFX The Merger Fund	1.51%	8.11%	3.27%	4.17%	0.71%	-0.19%	4.87%	5.96%	7.68%	2.39%

Correlation

The correlation between NARAX and MERFX is 0.14, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.14
Correlation (3Y) Balances recent behavior with more history.	0.07
Correlation (5Y) Shows whether the relationship held over a longer period.	0.10
Correlation (10Y) Provides a long-term view across more market conditions.	0.10
Correlation (All Time) Calculated using the full available price history since Jul 1, 1992	0.09

Return for Risk

NARAX vs. MERFX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

NARAX

NARAX Risk / Return Rank: 82
NARAX Sharpe Ratio Rank: 72
NARAX Sortino Ratio Rank: 83
NARAX Omega Ratio Rank: 89
NARAX Calmar Ratio Rank: 79
NARAX Martin Ratio Rank: 85

MERFX

MERFX Risk / Return Rank: 96
MERFX Sharpe Ratio Rank: 93
MERFX Sortino Ratio Rank: 96
MERFX Omega Ratio Rank: 92
MERFX Calmar Ratio Rank: 98
MERFX Martin Ratio Rank: 98

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

NARAX vs. MERFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Virtus Newfleet Multi-Sector Short Term Bond Fund (NARAX) and The Merger Fund (MERFX). 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.

	NARAX	MERFX	Difference
Sharpe ratio: Return per unit of total volatility	1.73	2.44	-0.70
Sortino ratio: Return per unit of downside risk	2.96	4.07	-1.11
Omega ratio: Gain probability vs. loss probability	1.48	1.53	-0.05
Calmar ratio: Return relative to maximum drawdown	2.66	7.15	-4.49
Martin ratio: Return relative to average drawdown	11.09	27.92	-16.83

NARAX vs. MERFX - Sharpe Ratio Comparison

The current NARAX Sharpe Ratio is 1.73, which is comparable to the MERFX Sharpe Ratio of 2.44. The chart below compares the historical Sharpe Ratios of NARAX and MERFX, 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

NARAX vs. MERFX - Drawdown Comparison

The maximum NARAX drawdown since its inception was -16.20%, smaller than the maximum MERFX drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for NARAX and MERFX.

Drawdown Indicators

	NARAX	MERFX	Difference
Max Drawdown Largest peak-to-trough decline	-16.20%	-20.82%	+4.62%
Max Drawdown (1Y) Largest decline over 1 year	-1.52%	-0.52%	-1.00%
Max Drawdown (3Y) Largest decline over 3 years	-1.52%	-3.36%	+1.84%
Max Drawdown (5Y) Largest decline over 5 years	-8.52%	-3.56%	-4.96%
Max Drawdown (10Y) Largest decline over 10 years	-10.69%	-9.35%	-1.34%
Current Drawdown Current decline from peak	-0.44%	-0.23%	-0.21%
Average Drawdown Average peak-to-trough decline	-1.12%	-2.65%	+1.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.36%	0.13%	+0.23%

Volatility

NARAX vs. MERFX - Volatility Comparison

Virtus Newfleet Multi-Sector Short Term Bond Fund (NARAX) and The Merger Fund (MERFX) have volatilities of 0.54% and 0.55%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NARAX	MERFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.54%	0.55%	-0.01%
Volatility (6M) Calculated over the trailing 6-month period	1.76%	1.23%	+0.53%
Volatility (1Y) Calculated over the trailing 1-year period	2.34%	1.52%	+0.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.72%	3.36%	-0.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.70%	3.75%	-1.05%

NARAX vs. MERFX - Expense Ratio Comparison

NARAX has a 0.90% expense ratio, which is lower than MERFX's 1.50% expense ratio.

Dividends

NARAX vs. MERFX - Dividend Comparison

NARAX's dividend yield for the trailing twelve months is around 4.05%, less than MERFX's 7.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MERFX The Merger Fund	7.31%	7.42%	3.24%	2.59%	3.50%	0.27%	3.31%	1.34%	4.52%	0.59%	0.32%	1.25%
NARAX Virtus Newfleet Multi-Sector Short Term Bond Fund	4.05%	4.52%	3.97%	3.41%	2.50%	1.66%	2.66%	2.94%	2.92%	2.97%	2.92%	2.93%

Frequently Asked Questions

Can I hold both NARAX and MERFX in my portfolio?

NARAX and MERFX have a correlation of 0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NARAX or MERFX?

MERFX has higher volatility (0.55%) compared to NARAX (0.54%). In terms of maximum drawdown, NARAX dropped -16.20% vs MERFX's -20.82%.

Which has better risk-adjusted returns?

MERFX currently has the higher Sharpe Ratio (2.44 vs 1.73), 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.