VIKSX vs. MERFX

Last updated Jun 4, 2026

VIKSX (Virtus KAR Small-Mid Cap Growth Fund) and MERFX (The Merger Fund) are both mutual funds - VIKSX is a Mid Cap Growth Equities fund managed by Virtus, while MERFX is a Event Driven fund managed by Virtus. Over the past 5 years, VIKSX returned -0.79%/yr vs 2.86%/yr for MERFX. At a 0.35 correlation, their price movements are largely independent. VIKSX charges 1.06%/yr vs 1.50%/yr for MERFX.

Performance

VIKSX vs. MERFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Virtus KAR Small-Mid Cap Growth Fund (VIKSX) 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, VIKSX achieves a -2.93% return, which is significantly lower than MERFX's 0.99% return.

VIKSX

• 1D: -0.90%
• 1M: 3.65%
• YTD: -2.93%
• 6M: -5.07%
• 1Y: -10.05%
• 3Y*: 3.33%
• 5Y*: -0.79%
• 10Y*: —

MERFX

• 1D: 0.00%
• 1M: 0.23%
• YTD: 0.99%
• 6M: 1.26%
• 1Y: 4.60%
• 3Y*: 6.03%
• 5Y*: 2.86%
• 10Y*: 3.89%

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

VIKSX vs. MERFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
VIKSX Virtus KAR Small-Mid Cap Growth Fund	-2.93%	-8.33%	12.39%	18.92%	-22.54%	5.38%	3.23%
MERFX The Merger Fund	0.99%	8.11%	3.27%	4.17%	0.71%	-0.19%	0.48%

Correlation

The correlation between VIKSX and MERFX is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.29
Correlation (3Y) Calculated over the trailing 3-year period	0.27
Correlation (5Y) Calculated over the trailing 5-year period	0.34
Correlation (All Time) Calculated using the full available price history since Dec 15, 2020	0.35

Return for Risk

VIKSX vs. MERFX — Risk / Return Rank

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

VIKSX

VIKSX Risk / Return Rank: 1
VIKSX Sharpe Ratio Rank: 1
VIKSX Sortino Ratio Rank: 1
VIKSX Omega Ratio Rank: 1
VIKSX Calmar Ratio Rank: 1
VIKSX Martin Ratio Rank: 1

MERFX

MERFX Risk / Return Rank: 97
MERFX Sharpe Ratio Rank: 94
MERFX Sortino Ratio Rank: 98
MERFX Omega Ratio Rank: 95
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.

VIKSX vs. MERFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Virtus KAR Small-Mid Cap Growth Fund (VIKSX) 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.

	VIKSX	MERFX	Difference
Sharpe ratio Return per unit of total volatility	-0.59	3.31	-3.91
Sortino ratio Return per unit of downside risk	-0.77	6.16	-6.94
Omega ratio Gain probability vs. loss probability	0.92	1.78	-0.86
Calmar ratio Return relative to maximum drawdown	-0.45	9.13	-9.58
Martin ratio Return relative to average drawdown	-0.95	42.15	-43.09
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VIKSX vs. MERFX - Sharpe Ratio Comparison

The current VIKSX Sharpe Ratio is -0.59, which is lower than the MERFX Sharpe Ratio of 3.31. The chart below compares the historical Sharpe Ratios of VIKSX 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.

Sharpe Ratios by Period

	VIKSX	MERFX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.59	3.31	-3.91
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.04	0.84	-0.88
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.04	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.00	0.68	-0.68

Drawdowns

VIKSX vs. MERFX - Drawdown Comparison

The maximum VIKSX drawdown since its inception was -34.44%, which is greater than MERFX's maximum drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for VIKSX and MERFX.

Drawdown Indicators

	VIKSX	MERFX	Difference
Max Drawdown Largest peak-to-trough decline	-34.44%	-20.82%	-13.62%
Max Drawdown (1Y) Largest decline over 1 year	-21.39%	-0.52%	-20.87%
Max Drawdown (3Y) Largest decline over 3 years	-26.02%	-3.36%	-22.66%
Max Drawdown (5Y) Largest decline over 5 years	-34.44%	-5.95%	-28.49%
Max Drawdown (10Y) Largest decline over 10 years	—	-9.35%	—
Current Drawdown Current decline from peak	-18.74%	-0.11%	-18.63%
Average Drawdown Average peak-to-trough decline	-13.81%	-2.67%	-11.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.12%	0.11%	+10.01%

Volatility

VIKSX vs. MERFX - Volatility Comparison

Virtus KAR Small-Mid Cap Growth Fund (VIKSX) has a higher volatility of 5.15% compared to The Merger Fund (MERFX) at 0.38%. This indicates that VIKSX'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

	VIKSX	MERFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.15%	0.38%	+4.77%
Volatility (6M) Calculated over the trailing 6-month period	12.45%	0.92%	+11.53%
Volatility (1Y) Calculated over the trailing 1-year period	16.18%	1.43%	+14.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.85%	3.44%	+15.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.83%	3.75%	+15.08%

VIKSX vs. MERFX - Expense Ratio Comparison

VIKSX has a 1.06% expense ratio, which is lower than MERFX's 1.50% expense ratio.

Dividends

VIKSX vs. MERFX - Dividend Comparison

VIKSX has not paid dividends to shareholders, while MERFX's dividend yield for the trailing twelve months is around 7.34%.

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%
VIKSX Virtus KAR Small-Mid Cap Growth Fund	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VIKSX and MERFX in my portfolio?

VIKSX and MERFX have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VIKSX or MERFX?

VIKSX has higher volatility (5.15%) compared to MERFX (0.38%). In terms of maximum drawdown, VIKSX dropped -34.44% vs MERFX's -20.82%.

Which has better risk-adjusted returns?

MERFX currently has the higher Sharpe Ratio (3.31 vs -0.59), 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.