PDIAX vs. MERFX

Last updated Jun 23, 2026

PDIAX (Virtus KAR Equity Income Fund) and MERFX (The Merger Fund) are both mutual funds - PDIAX is a Large Cap Blend Equities fund managed by Virtus, while MERFX is a Event Driven fund managed by Virtus. Over the past 10 years, PDIAX returned 10.59%/yr vs 3.90%/yr for MERFX. At a 0.49 correlation, their price movements are largely independent. PDIAX charges 1.20%/yr vs 1.50%/yr for MERFX.

Performance

PDIAX vs. MERFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Virtus KAR Equity Income Fund (PDIAX) 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, PDIAX achieves a 12.36% return, which is significantly higher than MERFX's 1.04% return. Over the past 10 years, PDIAX has outperformed MERFX with an annualized return of 10.59%, while MERFX has yielded a comparatively lower 3.90% annualized return.

PDIAX

• 1D: 0.43%
• 1M: 1.79%
• YTD: 12.36%
• 6M: 11.63%
• 1Y: 20.51%
• 3Y*: 12.53%
• 5Y*: 8.04%
• 10Y*: 10.59%

MERFX

• 1D: 0.11%
• 1M: 0.00%
• YTD: 1.04%
• 6M: 1.16%
• 1Y: 4.60%
• 3Y*: 6.01%
• 5Y*: 2.98%
• 10Y*: 3.90%

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

PDIAX vs. MERFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PDIAX Virtus KAR Equity Income Fund	12.36%	13.45%	9.10%	1.08%	-2.58%	17.04%	14.51%	28.11%	-12.69%	22.45%
MERFX The Merger Fund	1.04%	8.11%	3.27%	4.17%	0.71%	-0.19%	4.87%	5.96%	7.68%	2.39%

Correlation

The correlation between PDIAX and MERFX is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.34
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.35
Correlation (10Y) Calculated over the trailing 10-year period	0.37
Correlation (All Time) Calculated using the full available price history since Sep 25, 1997	0.49

The correlation between PDIAX and MERFX shifts across timeframes, from 0.29 (3 years) to 0.49 (all time), reflecting how their relationship changes across market environments.

Return for Risk

PDIAX vs. MERFX — Risk / Return Rank

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

PDIAX

PDIAX Risk / Return Rank: 71
PDIAX Sharpe Ratio Rank: 65
PDIAX Sortino Ratio Rank: 70
PDIAX Omega Ratio Rank: 61
PDIAX Calmar Ratio Rank: 77
PDIAX Martin Ratio Rank: 81

MERFX

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

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.

PDIAX vs. MERFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Virtus KAR Equity Income Fund (PDIAX) 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.

	PDIAX	MERFX	Difference
Sharpe ratio: Return per unit of total volatility	2.17	3.07	-0.90
Sortino ratio: Return per unit of downside risk	3.18	5.57	-2.39
Omega ratio: Gain probability vs. loss probability	1.39	1.72	-0.33
Calmar ratio: Return relative to maximum drawdown	3.30	9.02	-5.72
Martin ratio: Return relative to average drawdown	14.05	39.94	-25.89

PDIAX vs. MERFX - Sharpe Ratio Comparison

The current PDIAX Sharpe Ratio is 2.17, which is comparable to the MERFX Sharpe Ratio of 3.07. The chart below compares the historical Sharpe Ratios of PDIAX 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

PDIAX vs. MERFX - Drawdown Comparison

The maximum PDIAX drawdown since its inception was -53.27%, which is greater than MERFX's maximum drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for PDIAX and MERFX.

Drawdown Indicators

	PDIAX	MERFX	Difference
Max Drawdown Largest peak-to-trough decline	-53.27%	-20.82%	-32.45%
Max Drawdown (1Y) Largest decline over 1 year	-6.22%	-0.52%	-5.70%
Max Drawdown (3Y) Largest decline over 3 years	-12.04%	-3.36%	-8.68%
Max Drawdown (5Y) Largest decline over 5 years	-16.21%	-4.99%	-11.22%
Max Drawdown (10Y) Largest decline over 10 years	-35.26%	-9.35%	-25.91%
Current Drawdown Current decline from peak	-0.52%	-0.17%	-0.35%
Average Drawdown Average peak-to-trough decline	-8.36%	-2.66%	-5.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.46%	0.12%	+1.34%

Volatility

PDIAX vs. MERFX - Volatility Comparison

Virtus KAR Equity Income Fund (PDIAX) has a higher volatility of 3.00% compared to The Merger Fund (MERFX) at 0.71%. This indicates that PDIAX's price experiences larger fluctuations and is considered to be riskier than MERFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PDIAX	MERFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.00%	0.71%	+2.29%
Volatility (6M) Calculated over the trailing 6-month period	7.42%	1.10%	+6.32%
Volatility (1Y) Calculated over the trailing 1-year period	9.47%	1.53%	+7.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.00%	3.45%	+9.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.92%	3.75%	+13.17%

PDIAX vs. MERFX - Expense Ratio Comparison

PDIAX has a 1.20% expense ratio, which is lower than MERFX's 1.50% expense ratio.

Dividends

PDIAX vs. MERFX - Dividend Comparison

PDIAX's dividend yield for the trailing twelve months is around 6.63%, less than MERFX's 7.34% 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%
PDIAX Virtus KAR Equity Income Fund	6.63%	6.52%	2.88%	2.71%	5.83%	4.16%	35.18%	0.95%	1.20%	15.53%	3.60%	19.74%

Frequently Asked Questions

Can I hold both PDIAX and MERFX in my portfolio?

PDIAX and MERFX have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PDIAX or MERFX?

PDIAX has higher volatility (3.00%) compared to MERFX (0.71%). In terms of maximum drawdown, PDIAX dropped -53.27% vs MERFX's -20.82%.

Which has better risk-adjusted returns?

MERFX currently has the higher Sharpe Ratio (3.07 vs 2.17), 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.