ProShares Merger ETF

MRGR

Market cap $12.2M

Global M&A activity hits $1.29T in Q3, fueled by rate-cut hopes and record U.S. bank deals, signaling strong momentum for dealmaking.

After holding steady for much of 2025, the U.S. Federal Reserve finally instituted the first rate cut of 25 basis points, which could help jumpstart more mergers and acquisitions (M&A) activity. Likewise, this and further rate cuts could benefit exchange traded funds (ETFs) that provide exposure to M&A dealmaking.

Driven by increasing global M&A deal notifications and easing financial market conditions, investing in ETFs employing a merger arbitrage strategy can be a smart play.

After a weak M&A year of 2023, things are looking bright for space due to chances of Fed rate cuts, higher pent-up demand and improving financial markets.

After several quiet years, global M&A activity gathered steam early in 2024 following a flurry of deals. The deal value surged 55% year over year to $425 billion, signaling a robust revival in the sector.

As we move into 2024, optimism around a comeback year for deal-making exists. However, the M&A landscape continues to evolve, with private equity becoming an increasingly attractive option for companies and investors seeking smoother and more predictable exits.