EMD vs. EDD
EMD (Western Asset Emerging Markets Debt Fund Inc) and EDD (Morgan Stanley Emerging Markets Domestic Fund) are both Emerging Markets Bonds funds. Over the past 10 years, EMD returned 5.46%/yr vs 5.50%/yr for EDD. Their 0.52 correlation means they have sometimes moved together and sometimes differently. EMD charges 0.01%/yr vs 2.20%/yr for EDD.
Performance
EMD vs. EDD - Performance Comparison
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Returns By Period
In the year-to-date period, EMD achieves a 4.84% return, which is significantly lower than EDD's 14.80% return. Both investments have delivered pretty close results over the past 10 years, with EMD having a 5.46% annualized return and EDD not far ahead at 5.50%.
EMD
- 1D
- -0.38%
- 1M
- -2.00%
- 6M
- 1.55%
- YTD
- 4.84%
- 1Y
- 14.88%
- 3Y*
- 18.16%
- 5Y*
- 4.86%
- 10Y*
- 5.46%
- ALL TIME*
- 6.63%
EDD
- 1D
- -0.17%
- 1M
- 0.00%
- 6M
- 6.55%
- YTD
- 14.80%
- 1Y
- 27.62%
- 3Y*
- 18.63%
- 5Y*
- 8.18%
- 10Y*
- 5.50%
- ALL TIME*
- 2.96%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $2.10M | $3.03M | $2.42M | |
| $1.76M | $1.98M | $1.97M |
EMD vs. EDD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
EMD Western Asset Emerging Markets Debt Fund Inc | 4.84% | 23.41% | 16.23% | 12.23% | -20.78% | -0.32% | 7.03% | 26.62% | -13.70% | 14.29% |
EDD Morgan Stanley Emerging Markets Domestic Fund | 14.80% | 32.46% | 8.64% | 14.09% | -14.15% | -7.03% | -2.84% | 25.45% | -14.09% | 16.34% |
Correlation
The correlation between EMD and EDD is 0.61, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.61 |
Correlation (3Y) Balances recent behavior with more history. | 0.53 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.55 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.53 |
Correlation (All Time) Calculated using the full available price history since Apr 24, 2007 | 0.52 |
The correlation between EMD and EDD has been stable across timeframes, ranging from 0.52 to 0.61 - a consistent structural relationship.
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Return for Risk
EMD vs. EDD — Risk / Return Rank
EMD
EDD
EMD vs. EDD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Western Asset Emerging Markets Debt Fund Inc (EMD) and Morgan Stanley Emerging Markets Domestic Fund (EDD). 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 | EDD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.45 | ||
| Sortino ratioReturn per unit of downside risk | -0.58 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.29 | -0.09 |
| Calmar ratioReturn relative to maximum drawdown | 1.16 | 1.57 | -0.42 |
| Martin ratioReturn relative to average drawdown | 4.54 | 5.03 | -0.50 |
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Drawdowns
EMD vs. EDD - Drawdown Comparison
The maximum EMD drawdown since its inception was -48.26%, smaller than the maximum EDD drawdown of -59.38%. Use the drawdown chart below to compare losses from any high point for EMD and EDD.
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Drawdown Indicators
| EMD | EDD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.26% | -59.38% | +11.12% |
Max Drawdown (1Y)Largest decline over 1 year | -13.33% | -17.67% | +4.34% |
Max Drawdown (3Y)Largest decline over 3 years | -13.33% | -17.67% | +4.34% |
Max Drawdown (5Y)Largest decline over 5 years | -40.43% | -32.04% | -8.39% |
Max Drawdown (10Y)Largest decline over 10 years | -46.44% | -42.70% | -3.74% |
Current DrawdownCurrent decline from peak | -2.23% | -2.84% | +0.61% |
Average DrawdownAverage peak-to-trough decline | -8.75% | -24.06% | +15.31% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.39% | 5.50% | -2.11% |
Volatility
EMD vs. EDD - Volatility Comparison
The current volatility for Western Asset Emerging Markets Debt Fund Inc (EMD) is 3.00%, while Morgan Stanley Emerging Markets Domestic Fund (EDD) has a volatility of 4.62%. This indicates that EMD experiences smaller price fluctuations and is considered to be less risky than EDD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| EMD | EDD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.00% | 4.62% | -1.62% |
Volatility (6M)Calculated over the trailing 6-month period | 10.39% | 13.86% | -3.47% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.74% | 16.72% | -3.98% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.24% | 15.57% | +0.67% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.37% | 17.66% | +0.71% |
EMD vs. EDD - Expense Ratio Comparison
EMD has a 0.02% expense ratio, which is lower than EDD's 2.20% expense ratio.
Dividends
EMD vs. EDD - Dividend Comparison
EMD's dividend yield for the trailing twelve months is around 10.89%, which matches EDD's 10.82% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EDD Morgan Stanley Emerging Markets Domestic Fund | 10.82% | 9.76% | 11.45% | 7.30% | 6.82% | 6.93% | 6.92% | 8.15% | 9.90% | 8.18% | 10.32% | 12.65% |
EMD Western Asset Emerging Markets Debt Fund Inc | 10.89% | 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
EMD and EDD have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
EDD has higher volatility (4.62%) compared to EMD (3.00%). In terms of maximum drawdown, EMD dropped -48.26% vs EDD's -59.38%.
EDD currently has the higher Sharpe Ratio (1.66 vs 1.21), 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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