BLW vs. WDI
BLW (BlackRock Limited Duration Income Trust) is a stock, while WDI (Western Asset Diversified Income Fund) is Multisector Bonds fund managed by Franklin Templeton. Over the past 5 years, BLW returned 3.24%/yr vs 3.52%/yr for WDI. At a 0.44 correlation, their price movements are largely independent.
Performance
BLW vs. WDI - Performance Comparison
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Returns By Period
In the year-to-date period, BLW achieves a -2.31% return, which is significantly lower than WDI's 4.16% return.
BLW
- 1D
- -0.08%
- 1M
- 4.37%
- 6M
- -2.46%
- YTD
- -2.31%
- 1Y
- -0.56%
- 3Y*
- 9.37%
- 5Y*
- 3.24%
- 10Y*
- 6.52%
WDI
- 1D
- -0.29%
- 1M
- 3.86%
- 6M
- 4.24%
- YTD
- 4.16%
- 1Y
- 3.95%
- 3Y*
- 12.85%
- 5Y*
- 3.52%
- 10Y*
- —
BLW vs. WDI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
BLW BlackRock Limited Duration Income Trust | -2.31% | 7.17% | 11.06% | 17.29% | -15.92% | 3.19% |
WDI Western Asset Diversified Income Fund | 4.16% | 10.64% | 13.88% | 25.11% | -23.30% | -5.61% |
Correlation
The correlation between BLW and WDI is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.42 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.42 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.44 |
Correlation (All Time) Calculated using the full available price history since Jun 25, 2021 | 0.44 |
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Return for Risk
BLW vs. WDI — Risk / Return Rank
BLW
WDI
BLW vs. WDI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BlackRock Limited Duration Income Trust (BLW) and Western Asset Diversified Income Fund (WDI). 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.
| BLW | WDI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.48 | ||
| Sortino ratioReturn per unit of downside risk | -0.69 | ||
| Omega ratioGain probability vs. loss probability | 0.99 | 1.08 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | -0.05 | 0.47 | -0.52 |
| Martin ratioReturn relative to average drawdown | -0.14 | 1.15 | -1.28 |
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Drawdowns
BLW vs. WDI - Drawdown Comparison
The maximum BLW drawdown since its inception was -44.13%, which is greater than WDI's maximum drawdown of -32.45%. Use the drawdown chart below to compare losses from any high point for BLW and WDI.
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Drawdown Indicators
| BLW | WDI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -44.13% | -32.45% | -11.68% |
Max Drawdown (1Y)Largest decline over 1 year | -11.19% | -8.47% | -2.72% |
Max Drawdown (3Y)Largest decline over 3 years | -11.19% | -14.14% | +2.95% |
Max Drawdown (5Y)Largest decline over 5 years | -26.30% | -32.45% | +6.15% |
Max Drawdown (10Y)Largest decline over 10 years | -41.85% | — | — |
Current DrawdownCurrent decline from peak | -4.40% | -1.16% | -3.24% |
Average DrawdownAverage peak-to-trough decline | -6.04% | -10.24% | +4.20% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.17% | 3.46% | +0.71% |
Volatility
BLW vs. WDI - Volatility Comparison
The current volatility for BlackRock Limited Duration Income Trust (BLW) is 1.69%, while Western Asset Diversified Income Fund (WDI) has a volatility of 2.72%. This indicates that BLW experiences smaller price fluctuations and is considered to be less risky than WDI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BLW | WDI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.69% | 2.72% | -1.03% |
Volatility (6M)Calculated over the trailing 6-month period | 7.12% | 7.74% | -0.62% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.08% | 9.60% | -1.52% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.32% | 12.96% | -0.64% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.58% | 12.91% | +1.67% |
Dividends
BLW vs. WDI - Dividend Comparison
BLW's dividend yield for the trailing twelve months is around 10.66%, less than WDI's 13.08% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BLW BlackRock Limited Duration Income Trust | 10.66% | 9.89% | 9.39% | 8.63% | 8.26% | 6.99% | 7.39% | 6.27% | 7.14% | 6.24% | 9.68% | 8.26% |
WDI Western Asset Diversified Income Fund | 13.08% | 13.98% | 12.32% | 11.45% | 11.40% | 3.19% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
BLW and WDI have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
WDI has higher volatility (2.72%) compared to BLW (1.69%). In terms of maximum drawdown, BLW dropped -44.13% vs WDI's -32.45%.
WDI currently has the higher Sharpe Ratio (0.41 vs -0.07), 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.
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