EMD vs. BKLN

Last updated Aug 4, 2026

EMD (Western Asset Emerging Markets Debt Fund Inc) and BKLN (Invesco Senior Loan ETF) are both funds - EMD is a Emerging Markets Bonds fund managed by Franklin Templeton, while BKLN is a Bank Loan fund tracking the Morningstar LSTA US Leveraged Loan 100 Index. Over the past 10 years, EMD returned 5.54%/yr vs 4.21%/yr for BKLN. Their 0.31 correlation means their historical movements had little consistent relationship. EMD charges 0.01%/yr vs 0.65%/yr for BKLN.

Performance

EMD vs. BKLN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Western Asset Emerging Markets Debt Fund Inc (EMD) and Invesco Senior Loan ETF (BKLN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EMD achieves a 5.44% return, which is significantly higher than BKLN's 0.85% return. Over the past 10 years, EMD has outperformed BKLN with an annualized return of 5.54%, while BKLN has yielded a comparatively lower 4.21% annualized return.

EMD

• 1D: 0.57%
• 1M: -1.43%
• 6M: 1.66%
• YTD: 5.44%
• 1Y: 15.54%
• 3Y*: 17.81%
• 5Y*: 4.87%
• 10Y*: 5.54%
• ALL TIME*: 6.66%

BKLN

• 1D: 0.20%
• 1M: 0.93%
• 6M: 1.44%
• YTD: 0.85%
• 1Y: 4.29%
• 3Y*: 6.97%
• 5Y*: 5.41%
• 10Y*: 4.21%
• ALL TIME*: 3.74%

*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)
BKLN Invesco Senior Loan ETF	$124.78M	$121.39M	$171.07M
EMD Western Asset Emerging Markets Debt Fund Inc	$1.73M	$2.01M	$1.96M

EMD vs. BKLN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EMD Western Asset Emerging Markets Debt Fund Inc	5.44%	23.41%	16.23%	12.23%	-20.78%	-0.32%	7.03%	26.62%	-13.70%	14.29%
BKLN Invesco Senior Loan ETF	0.85%	6.88%	8.21%	12.53%	-2.51%	2.32%	1.32%	10.03%	-1.32%	2.13%

Correlation

The correlation between EMD and BKLN is 0.29, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.29
Correlation (3Y) Balances recent behavior with more history.	0.34
Correlation (5Y) Shows whether the relationship held over a longer period.	0.37
Correlation (10Y) Provides a long-term view across more market conditions.	0.33
Correlation (All Time) Calculated using the full available price history since Mar 3, 2011	0.31

Return for Risk

EMD vs. BKLN — Risk / Return Rank

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

EMD

EMD Risk / Return Rank: 31
EMD Sharpe Ratio Rank: 36
EMD Sortino Ratio Rank: 35
EMD Omega Ratio Rank: 32
EMD Calmar Ratio Rank: 23
EMD Martin Ratio Rank: 29

BKLN

BKLN Risk / Return Rank: 61
BKLN Sharpe Ratio Rank: 66
BKLN Sortino Ratio Rank: 70
BKLN Omega Ratio Rank: 82
BKLN Calmar Ratio Rank: 39
BKLN Martin Ratio Rank: 47

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.

EMD vs. BKLN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Western Asset Emerging Markets Debt Fund Inc (EMD) and Invesco Senior Loan ETF (BKLN). 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.

	EMD	BKLN	Difference
Sharpe ratio: Return per unit of total volatility	1.22	1.55	-0.33
Sortino ratio: Return per unit of downside risk	1.76	2.31	-0.55
Omega ratio: Gain probability vs. loss probability	1.21	1.36	-0.15
Calmar ratio: Return relative to maximum drawdown	1.17	1.40	-0.23
Martin ratio: Return relative to average drawdown	4.60	5.42	-0.82

EMD vs. BKLN - Sharpe Ratio Comparison

The current EMD Sharpe Ratio is 1.22, which is comparable to the BKLN Sharpe Ratio of 1.55. The chart below compares the historical Sharpe Ratios of EMD and BKLN, 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

EMD vs. BKLN - Drawdown Comparison

The maximum EMD drawdown since its inception was -48.26%, which is greater than BKLN's maximum drawdown of -24.17%. Use the drawdown chart below to compare losses from any high point for EMD and BKLN.

Drawdown Indicators

	EMD	BKLN	Difference
Max Drawdown Largest peak-to-trough decline	-48.26%	-24.17%	-24.09%
Max Drawdown (1Y) Largest decline over 1 year	-13.33%	-3.07%	-10.26%
Max Drawdown (3Y) Largest decline over 3 years	-13.33%	-3.55%	-9.78%
Max Drawdown (5Y) Largest decline over 5 years	-40.43%	-7.31%	-33.12%
Max Drawdown (10Y) Largest decline over 10 years	-46.44%	-24.17%	-22.27%
Current Drawdown Current decline from peak	-1.67%	0.00%	-1.67%
Average Drawdown Average peak-to-trough decline	-8.75%	-1.08%	-7.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.39%	0.79%	+2.60%

Volatility

EMD vs. BKLN - Volatility Comparison

Western Asset Emerging Markets Debt Fund Inc (EMD) has a higher volatility of 2.95% compared to Invesco Senior Loan ETF (BKLN) at 0.37%. This indicates that EMD's price experiences larger fluctuations and is considered to be riskier than BKLN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMD	BKLN	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.95%	0.37%	+2.58%
Volatility (6M) Calculated over the trailing 6-month period	10.40%	2.53%	+7.87%
Volatility (1Y) Calculated over the trailing 1-year period	12.77%	2.78%	+9.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.24%	4.47%	+11.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.38%	6.42%	+11.96%

EMD vs. BKLN - Expense Ratio Comparison

EMD has a 0.02% expense ratio, which is lower than BKLN's 0.65% expense ratio.

Dividends

EMD vs. BKLN - Dividend Comparison

EMD's dividend yield for the trailing twelve months is around 10.83%, more than BKLN's 6.51% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BKLN Invesco Senior Loan ETF	6.51%	6.95%	8.41%	8.59%	4.93%	3.11%	3.56%	4.86%	4.52%	3.50%	4.54%	4.12%
EMD Western Asset Emerging Markets Debt Fund Inc	10.83%	10.44%	10.57%	9.97%	11.09%	8.44%	8.45%	8.41%	9.76%	7.78%	9.99%	9.54%

Frequently Asked Questions

Can I hold both EMD and BKLN in my portfolio?

EMD and BKLN have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EMD or BKLN?

EMD has higher volatility (2.95%) compared to BKLN (0.37%). In terms of maximum drawdown, EMD dropped -48.26% vs BKLN's -24.17%.

Which has better risk-adjusted returns?

BKLN currently has the higher Sharpe Ratio (1.55 vs 1.22), 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.