VARBX vs. FFA

Last updated Aug 1, 2026

VARBX (Vivaldi Merger Arbitrage Fund Class I) and FFA (First Trust Enhanced Equity Income Fund) are both mutual funds - VARBX is a Event Driven fund managed by First Trust, while FFA is a Derivative Income fund actively managed by First Trust. Over the past 10 years, VARBX returned 3.95%/yr vs 13.30%/yr for FFA. Their 0.25 correlation means their historical movements had little consistent relationship. VARBX charges 1.81%/yr vs 1.22%/yr for FFA.

Performance

VARBX vs. FFA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vivaldi Merger Arbitrage Fund Class I (VARBX) and First Trust Enhanced Equity Income Fund (FFA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VARBX achieves a 2.56% return, which is significantly lower than FFA's 6.07% return. Over the past 10 years, VARBX has underperformed FFA with an annualized return of 3.95%, while FFA has yielded a comparatively higher 13.30% annualized return.

VARBX

• 1D: 0.19%
• 1M: 0.46%
• 6M: 2.17%
• YTD: 2.56%
• 1Y: 4.80%
• 3Y*: 5.48%
• 5Y*: 4.17%
• 10Y*: 3.95%
• ALL TIME*: 4.04%

FFA

• 1D: -0.13%
• 1M: 0.45%
• 6M: 6.38%
• YTD: 6.07%
• 1Y: 17.83%
• 3Y*: 15.09%
• 5Y*: 9.35%
• 10Y*: 13.30%
• ALL TIME*: 8.80%

*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)
FFA First Trust Enhanced Equity Income Fund	$454.84K	$474.22K	$602.29K
VARBX Vivaldi Merger Arbitrage Fund Class I	$0.00	$0.00	$0.00

VARBX vs. FFA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VARBX Vivaldi Merger Arbitrage Fund Class I	2.56%	6.06%	5.52%	3.30%	2.38%	5.42%	4.00%	4.28%	4.11%	2.39%
FFA First Trust Enhanced Equity Income Fund	6.07%	14.23%	21.46%	24.73%	-20.26%	28.69%	10.82%	43.35%	-13.93%	28.97%

Correlation

The correlation between VARBX and FFA is 0.19, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.19
Correlation (3Y) Balances recent behavior with more history.	0.19
Correlation (5Y) Shows whether the relationship held over a longer period.	0.25
Correlation (10Y) Provides a long-term view across more market conditions.	0.24
Correlation (All Time) Calculated using the full available price history since Oct 1, 2015	0.25

Return for Risk

VARBX vs. FFA — Risk / Return Rank

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

VARBX

VARBX Risk / Return Rank: 99
VARBX Sharpe Ratio Rank: 100
VARBX Sortino Ratio Rank: 99
VARBX Omega Ratio Rank: 99
VARBX Calmar Ratio Rank: 100
VARBX Martin Ratio Rank: 100

FFA

FFA Risk / Return Rank: 44
FFA Sharpe Ratio Rank: 45
FFA Sortino Ratio Rank: 44
FFA Omega Ratio Rank: 44
FFA Calmar Ratio Rank: 37
FFA Martin Ratio Rank: 48

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.

VARBX vs. FFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vivaldi Merger Arbitrage Fund Class I (VARBX) and First Trust Enhanced Equity Income Fund (FFA). 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.

	VARBX	FFA	Difference
Sharpe ratio: Return per unit of total volatility	4.84	1.30	+3.54
Sortino ratio: Return per unit of downside risk	8.92	1.88	+7.04
Omega ratio: Gain probability vs. loss probability	2.78	1.24	+1.55
Calmar ratio: Return relative to maximum drawdown	17.00	1.59	+15.41
Martin ratio: Return relative to average drawdown	83.31	6.94	+76.38

VARBX vs. FFA - Sharpe Ratio Comparison

The current VARBX Sharpe Ratio is 4.84, which is higher than the FFA Sharpe Ratio of 1.30. The chart below compares the historical Sharpe Ratios of VARBX and FFA, 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

VARBX vs. FFA - Drawdown Comparison

The maximum VARBX drawdown since its inception was -5.12%, smaller than the maximum FFA drawdown of -57.51%. Use the drawdown chart below to compare losses from any high point for VARBX and FFA.

Drawdown Indicators

	VARBX	FFA	Difference
Max Drawdown Largest peak-to-trough decline	-5.12%	-57.51%	+52.39%
Max Drawdown (1Y) Largest decline over 1 year	-0.28%	-10.15%	+9.87%
Max Drawdown (3Y) Largest decline over 3 years	-0.64%	-19.94%	+19.30%
Max Drawdown (5Y) Largest decline over 5 years	-1.79%	-29.96%	+28.17%
Max Drawdown (10Y) Largest decline over 10 years	-5.12%	-44.35%	+39.23%
Current Drawdown Current decline from peak	0.00%	-1.14%	+1.14%
Average Drawdown Average peak-to-trough decline	-0.56%	-8.37%	+7.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.06%	2.33%	-2.27%

Volatility

VARBX vs. FFA - Volatility Comparison

The current volatility for Vivaldi Merger Arbitrage Fund Class I (VARBX) is 0.43%, while First Trust Enhanced Equity Income Fund (FFA) has a volatility of 2.38%. This indicates that VARBX experiences smaller price fluctuations and is considered to be less risky than FFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VARBX	FFA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.43%	2.38%	-1.95%
Volatility (6M) Calculated over the trailing 6-month period	0.77%	9.95%	-9.18%
Volatility (1Y) Calculated over the trailing 1-year period	1.00%	12.42%	-11.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.18%	17.34%	-16.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.53%	19.71%	-17.18%

VARBX vs. FFA - Expense Ratio Comparison

VARBX has a 1.81% expense ratio, which is higher than FFA's 1.22% expense ratio.

Dividends

VARBX vs. FFA - Dividend Comparison

VARBX's dividend yield for the trailing twelve months is around 5.89%, less than FFA's 6.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FFA First Trust Enhanced Equity Income Fund	6.88%	6.70%	6.59%	6.90%	7.99%	5.92%	6.47%	6.61%	8.82%	6.83%	7.07%	7.12%
VARBX Vivaldi Merger Arbitrage Fund Class I	5.89%	6.04%	6.29%	4.07%	0.75%	8.42%	0.81%	5.54%	2.15%	1.70%	0.06%	0.04%

Frequently Asked Questions

Can I hold both VARBX and FFA in my portfolio?

VARBX and FFA have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VARBX or FFA?

FFA has higher volatility (2.38%) compared to VARBX (0.43%). In terms of maximum drawdown, VARBX dropped -5.12% vs FFA's -57.51%.

Which has better risk-adjusted returns?

VARBX currently has the higher Sharpe Ratio (4.84 vs 1.30), 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.