VMNFX vs. CDAZX

Last updated Jun 21, 2026

VMNFX (Vanguard Market Neutral Fund Investor Shares) and CDAZX (Multi-Manager Directional Alternative Strategies Fund) are both Long-Short funds. Over the past 5 years, VMNFX returned 13.83%/yr vs 12.37%/yr for CDAZX. At a 0.26 correlation, their price movements are largely independent. VMNFX charges 1.31%/yr vs 1.84%/yr for CDAZX.

Performance

VMNFX vs. CDAZX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Market Neutral Fund Investor Shares (VMNFX) and Multi-Manager Directional Alternative Strategies Fund (CDAZX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VMNFX achieves a 13.03% return, which is significantly higher than CDAZX's 9.40% return.

VMNFX

• 1D: -0.19%
• 1M: 2.67%
• YTD: 13.03%
• 6M: 13.52%
• 1Y: 20.64%
• 3Y*: 13.88%
• 5Y*: 13.83%
• 10Y*: 5.10%

CDAZX

• 1D: 0.78%
• 1M: 4.42%
• YTD: 9.40%
• 6M: 9.09%
• 1Y: 26.78%
• 3Y*: 18.10%
• 5Y*: 12.37%
• 10Y*: —

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

VMNFX vs. CDAZX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VMNFX Vanguard Market Neutral Fund Investor Shares	13.03%	9.27%	5.78%	12.23%	13.48%	23.24%	-11.58%	-9.57%	0.60%	-4.58%
CDAZX Multi-Manager Directional Alternative Strategies Fund	9.40%	19.20%	19.75%	3.90%	1.31%	20.14%	-6.39%	8.17%	-12.03%	10.32%

Correlation

The correlation between VMNFX and CDAZX is 0.04, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.04
Correlation (3Y) Calculated over the trailing 3-year period	0.06
Correlation (5Y) Calculated over the trailing 5-year period	0.23
Correlation (All Time) Calculated using the full available price history since Jan 12, 2017	0.26

Over the past year, the correlation between VMNFX and CDAZX has dropped to 0.04 - well below their long-term average of 0.26, suggesting their price drivers have been diverging.

Return for Risk

VMNFX vs. CDAZX — Risk / Return Rank

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

VMNFX

VMNFX Risk / Return Rank: 86
VMNFX Sharpe Ratio Rank: 90
VMNFX Sortino Ratio Rank: 91
VMNFX Omega Ratio Rank: 83
VMNFX Calmar Ratio Rank: 92
VMNFX Martin Ratio Rank: 74

CDAZX

CDAZX Risk / Return Rank: 85
CDAZX Sharpe Ratio Rank: 90
CDAZX Sortino Ratio Rank: 87
CDAZX Omega Ratio Rank: 84
CDAZX Calmar Ratio Rank: 84
CDAZX Martin Ratio Rank: 79

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.

VMNFX vs. CDAZX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Market Neutral Fund Investor Shares (VMNFX) and Multi-Manager Directional Alternative Strategies Fund (CDAZX). 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.

	VMNFX	CDAZX	Difference
Sharpe ratio: Return per unit of total volatility	2.71	2.73	-0.02
Sortino ratio: Return per unit of downside risk	4.10	3.86	+0.24
Omega ratio: Gain probability vs. loss probability	1.50	1.51	-0.01
Calmar ratio: Return relative to maximum drawdown	4.52	3.65	+0.86
Martin ratio: Return relative to average drawdown	12.65	13.53	-0.88

VMNFX vs. CDAZX - Sharpe Ratio Comparison

The current VMNFX Sharpe Ratio is 2.71, which is comparable to the CDAZX Sharpe Ratio of 2.73. The chart below compares the historical Sharpe Ratios of VMNFX and CDAZX, 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

VMNFX vs. CDAZX - Drawdown Comparison

The maximum VMNFX drawdown since its inception was -26.42%, smaller than the maximum CDAZX drawdown of -30.94%. Use the drawdown chart below to compare losses from any high point for VMNFX and CDAZX.

Drawdown Indicators

	VMNFX	CDAZX	Difference
Max Drawdown Largest peak-to-trough decline	-26.42%	-30.94%	+4.52%
Max Drawdown (1Y) Largest decline over 1 year	-4.65%	-7.32%	+2.67%
Max Drawdown (3Y) Largest decline over 3 years	-5.44%	-8.54%	+3.10%
Max Drawdown (5Y) Largest decline over 5 years	-6.75%	-10.91%	+4.16%
Max Drawdown (10Y) Largest decline over 10 years	-25.09%	—	—
Current Drawdown Current decline from peak	-0.25%	0.00%	-0.25%
Average Drawdown Average peak-to-trough decline	-8.74%	-6.11%	-2.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.66%	1.97%	-0.31%

Volatility

VMNFX vs. CDAZX - Volatility Comparison

The current volatility for Vanguard Market Neutral Fund Investor Shares (VMNFX) is 1.94%, while Multi-Manager Directional Alternative Strategies Fund (CDAZX) has a volatility of 3.47%. This indicates that VMNFX experiences smaller price fluctuations and is considered to be less risky than CDAZX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VMNFX	CDAZX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.94%	3.47%	-1.53%
Volatility (6M) Calculated over the trailing 6-month period	5.65%	7.66%	-2.01%
Volatility (1Y) Calculated over the trailing 1-year period	7.76%	9.78%	-2.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.20%	9.22%	-2.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.39%	10.06%	-3.67%

VMNFX vs. CDAZX - Expense Ratio Comparison

VMNFX has a 1.31% expense ratio, which is lower than CDAZX's 1.84% expense ratio.

Dividends

VMNFX vs. CDAZX - Dividend Comparison

VMNFX's dividend yield for the trailing twelve months is around 3.11%, less than CDAZX's 21.28% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CDAZX Multi-Manager Directional Alternative Strategies Fund	21.28%	23.28%	10.21%	1.58%	11.48%	6.28%	0.00%	0.79%	50.33%	3.97%	0.00%	0.00%
VMNFX Vanguard Market Neutral Fund Investor Shares	3.11%	3.53%	5.61%	5.09%	0.75%	0.16%	0.81%	3.16%	0.94%	1.07%	0.38%	0.02%

Frequently Asked Questions

Can I hold both VMNFX and CDAZX in my portfolio?

VMNFX and CDAZX have a correlation of 0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VMNFX or CDAZX?

CDAZX has higher volatility (3.47%) compared to VMNFX (1.94%). In terms of maximum drawdown, VMNFX dropped -26.42% vs CDAZX's -30.94%.

Which has better risk-adjusted returns?

CDAZX currently has the higher Sharpe Ratio (2.73 vs 2.71), 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.