WCEIX vs. MERFX

Last updated Jun 3, 2026

WCEIX (Virtus Westchester Event-Driven Fund) and MERFX (The Merger Fund) are both Event Driven funds. Over the past 10 years, WCEIX returned 4.56%/yr vs 3.89%/yr for MERFX. Their correlation of 0.83 suggests significant overlap in exposure. WCEIX charges 1.63%/yr vs 1.50%/yr for MERFX.

Performance

WCEIX vs. MERFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Virtus Westchester Event-Driven Fund (WCEIX) 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, WCEIX achieves a 1.55% return, which is significantly higher than MERFX's 0.99% return. Over the past 10 years, WCEIX has outperformed MERFX with an annualized return of 4.56%, while MERFX has yielded a comparatively lower 3.89% annualized return.

WCEIX

• 1D: 0.19%
• 1M: 0.67%
• YTD: 1.55%
• 6M: 2.08%
• 1Y: 5.89%
• 3Y*: 6.36%
• 5Y*: 2.39%
• 10Y*: 4.56%

MERFX

• 1D: 0.06%
• 1M: 0.17%
• YTD: 0.99%
• 6M: 1.31%
• 1Y: 4.72%
• 3Y*: 6.03%
• 5Y*: 2.88%
• 10Y*: 3.89%

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

WCEIX vs. MERFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
WCEIX Virtus Westchester Event-Driven Fund	1.55%	7.90%	3.24%	5.86%	-2.79%	1.76%	6.53%	11.13%	5.27%	4.72%
MERFX The Merger Fund	0.99%	8.11%	3.27%	4.17%	0.71%	-0.19%	4.87%	5.96%	7.68%	2.39%

Correlation

The correlation between WCEIX and MERFX is 0.65, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.79
Correlation (All Time) Calculated using the full available price history since Jan 7, 2014	0.83

The correlation between WCEIX and MERFX shifts across timeframes, from 0.65 (1 year) to 0.83 (all time), reflecting how their relationship changes across market environments.

Return for Risk

WCEIX vs. MERFX — Risk / Return Rank

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

WCEIX

WCEIX Risk / Return Rank: 68
WCEIX Sharpe Ratio Rank: 50
WCEIX Sortino Ratio Rank: 65
WCEIX Omega Ratio Rank: 61
WCEIX Calmar Ratio Rank: 88
WCEIX Martin Ratio Rank: 78

MERFX

MERFX Risk / Return Rank: 97
MERFX Sharpe Ratio Rank: 96
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.

WCEIX vs. MERFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Virtus Westchester Event-Driven Fund (WCEIX) 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.

	WCEIX	MERFX	Difference
Sharpe ratio Return per unit of total volatility	2.08	3.39	-1.31
Sortino ratio Return per unit of downside risk	3.36	6.31	-2.95
Omega ratio Gain probability vs. loss probability	1.44	1.80	-0.36
Calmar ratio Return relative to maximum drawdown	4.30	9.44	-5.14
Martin ratio Return relative to average drawdown	14.78	43.72	-28.94
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

WCEIX vs. MERFX - Sharpe Ratio Comparison

The current WCEIX Sharpe Ratio is 2.08, which is lower than the MERFX Sharpe Ratio of 3.39. The chart below compares the historical Sharpe Ratios of WCEIX 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

	WCEIX	MERFX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.08	3.39	-1.31
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.47	0.84	-0.37
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.68	1.04	-0.36
Sharpe Ratio (All Time) Calculated using the full available price history	0.61	0.68	-0.07

Drawdowns

WCEIX vs. MERFX - Drawdown Comparison

The maximum WCEIX drawdown since its inception was -21.65%, roughly equal to the maximum MERFX drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for WCEIX and MERFX.

Drawdown Indicators

	WCEIX	MERFX	Difference
Max Drawdown Largest peak-to-trough decline	-21.65%	-20.82%	-0.83%
Max Drawdown (1Y) Largest decline over 1 year	-1.35%	-0.52%	-0.83%
Max Drawdown (3Y) Largest decline over 3 years	-4.21%	-3.36%	-0.85%
Max Drawdown (5Y) Largest decline over 5 years	-11.00%	-5.95%	-5.05%
Max Drawdown (10Y) Largest decline over 10 years	-21.65%	-9.35%	-12.30%
Current Drawdown Current decline from peak	0.00%	-0.11%	+0.11%
Average Drawdown Average peak-to-trough decline	-2.97%	-2.67%	-0.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.39%	0.11%	+0.28%

Volatility

WCEIX vs. MERFX - Volatility Comparison

Virtus Westchester Event-Driven Fund (WCEIX) has a higher volatility of 0.99% compared to The Merger Fund (MERFX) at 0.38%. This indicates that WCEIX'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

	WCEIX	MERFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.99%	0.38%	+0.61%
Volatility (6M) Calculated over the trailing 6-month period	1.95%	0.92%	+1.03%
Volatility (1Y) Calculated over the trailing 1-year period	2.80%	1.43%	+1.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.08%	3.44%	+1.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.73%	3.75%	+2.98%

WCEIX vs. MERFX - Expense Ratio Comparison

WCEIX has a 1.63% expense ratio, which is higher than MERFX's 1.50% expense ratio.

Dividends

WCEIX vs. MERFX - Dividend Comparison

WCEIX's dividend yield for the trailing twelve months is around 11.16%, more 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%
WCEIX Virtus Westchester Event-Driven Fund	11.16%	11.33%	3.88%	2.49%	0.21%	8.42%	3.18%	2.34%	5.56%	1.01%	0.87%	3.21%

Frequently Asked Questions

Can I hold both WCEIX and MERFX in my portfolio?

WCEIX and MERFX have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, WCEIX or MERFX?

WCEIX has higher volatility (0.99%) compared to MERFX (0.38%). In terms of maximum drawdown, WCEIX dropped -21.65% vs MERFX's -20.82%.

Which has better risk-adjusted returns?

MERFX currently has the higher Sharpe Ratio (3.39 vs 2.08), 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.