EDD vs. XFLT

Last updated Aug 4, 2026

EDD (Morgan Stanley Emerging Markets Domestic Fund) is Emerging Markets Bonds fund managed by Morgan Stanley, while XFLT (XAI Octagon Floating Rate & Alternative Income Term Trust) is a stock. Over the past 5 years, EDD returned 8.26%/yr vs -3.39%/yr for XFLT. Their 0.22 correlation means their historical movements had little consistent relationship.

Performance

EDD vs. XFLT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Morgan Stanley Emerging Markets Domestic Fund (EDD) and XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EDD achieves a 15.39% return, which is significantly higher than XFLT's -14.12% return.

EDD

• 1D: 0.52%
• 1M: 0.52%
• 6M: 7.29%
• YTD: 15.39%
• 1Y: 28.28%
• 3Y*: 19.33%
• 5Y*: 8.26%
• 10Y*: 5.44%
• ALL TIME*: 2.98%

XFLT

• 1D: -0.48%
• 1M: 6.58%
• 6M: -7.49%
• YTD: -14.12%
• 1Y: -20.71%
• 3Y*: -4.43%
• 5Y*: -3.39%
• 10Y*: —
• ALL TIME*: 1.14%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
EDD Morgan Stanley Emerging Markets Domestic Fund	$1.90M	$2.96M	$2.41M
XFLT XAI Octagon Floating Rate & Alternative Income Term Trust	$1.93M	$1.91M	$1.63M

EDD vs. XFLT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EDD Morgan Stanley Emerging Markets Domestic Fund	15.39%	32.46%	8.64%	14.09%	-14.15%	-7.03%	-2.84%	25.45%	-14.09%	-2.34%
XFLT XAI Octagon Floating Rate & Alternative Income Term Trust	-14.12%	-15.35%	7.37%	30.40%	-20.30%	31.30%	5.13%	22.05%	-15.10%	-4.70%

Correlation

The correlation between EDD and XFLT is 0.18, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.18
Correlation (3Y) Balances recent behavior with more history.	0.17
Correlation (5Y) Shows whether the relationship held over a longer period.	0.20
Correlation (All Time) Calculated using the full available price history since Sep 27, 2017	0.22

Return for Risk

EDD vs. XFLT — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

EDD

EDD Risk / Return Rank: 53
EDD Sharpe Ratio Rank: 69
EDD Sortino Ratio Rank: 66
EDD Omega Ratio Rank: 64
EDD Calmar Ratio Rank: 35
EDD Martin Ratio Rank: 33

XFLT

XFLT Risk / Return Rank: 14
XFLT Sharpe Ratio Rank: 5
XFLT Sortino Ratio Rank: 7
XFLT Omega Ratio Rank: 9
XFLT Calmar Ratio Rank: 25
XFLT Martin Ratio Rank: 24

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

EDD vs. XFLT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Morgan Stanley Emerging Markets Domestic Fund (EDD) and XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT). 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.

	EDD	XFLT	Difference
Sharpe ratio: Return per unit of total volatility	1.70	-0.97	+2.67
Sortino ratio: Return per unit of downside risk	2.37	-1.38	+3.75
Omega ratio: Gain probability vs. loss probability	1.30	0.84	+0.46
Calmar ratio: Return relative to maximum drawdown	1.61	-0.51	+2.12
Martin ratio: Return relative to average drawdown	5.15	-0.94	+6.09

EDD vs. XFLT - Sharpe Ratio Comparison

The current EDD Sharpe Ratio is 1.70, which is higher than the XFLT Sharpe Ratio of -0.97. The chart below compares the historical Sharpe Ratios of EDD and XFLT, 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

EDD vs. XFLT - Drawdown Comparison

The maximum EDD drawdown since its inception was -59.38%, which is greater than XFLT's maximum drawdown of -55.43%. Use the drawdown chart below to compare losses from any high point for EDD and XFLT.

Drawdown Indicators

	EDD	XFLT	Difference
Max Drawdown Largest peak-to-trough decline	-59.38%	-55.43%	-3.95%
Max Drawdown (1Y) Largest decline over 1 year	-17.67%	-40.67%	+23.00%
Max Drawdown (3Y) Largest decline over 3 years	-17.67%	-47.04%	+29.37%
Max Drawdown (5Y) Largest decline over 5 years	-32.04%	-47.04%	+15.00%
Max Drawdown (10Y) Largest decline over 10 years	-42.70%	—	—
Current Drawdown Current decline from peak	-2.34%	-31.71%	+29.37%
Average Drawdown Average peak-to-trough decline	-24.05%	-14.76%	-9.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.50%	22.18%	-16.68%

Volatility

EDD vs. XFLT - Volatility Comparison

The current volatility for Morgan Stanley Emerging Markets Domestic Fund (EDD) is 4.59%, while XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT) has a volatility of 6.31%. This indicates that EDD experiences smaller price fluctuations and is considered to be less risky than XFLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EDD	XFLT	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.59%	6.31%	-1.72%
Volatility (6M) Calculated over the trailing 6-month period	13.85%	18.97%	-5.12%
Volatility (1Y) Calculated over the trailing 1-year period	16.75%	21.40%	-4.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.57%	20.94%	-5.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.67%	26.05%	-8.38%

Dividends

EDD vs. XFLT - Dividend Comparison

EDD's dividend yield for the trailing twelve months is around 10.77%, less than XFLT's 18.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EDD Morgan Stanley Emerging Markets Domestic Fund	10.77%	9.76%	11.45%	7.30%	6.82%	6.93%	6.92%	8.15%	9.90%	8.18%	10.32%	12.65%
XFLT XAI Octagon Floating Rate & Alternative Income Term Trust	18.96%	18.23%	15.24%	13.61%	13.86%	9.82%	10.64%	10.63%	11.33%	1.47%	0.00%	0.00%

Frequently Asked Questions

Can I hold both EDD and XFLT in my portfolio?

EDD and XFLT have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EDD or XFLT?

XFLT has higher volatility (6.31%) compared to EDD (4.59%). In terms of maximum drawdown, EDD dropped -59.38% vs XFLT's -55.43%.

Which has better risk-adjusted returns?

EDD currently has the higher Sharpe Ratio (1.70 vs -0.97), 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.