HIO vs. MDHVX

Last updated Jun 23, 2026

HIO (Western Asset High Income Opportunity Fund Inc) and MDHVX (MainStay MacKay Short Duration High Yield Fund) are both High Yield Bonds funds. Over the past 10 years, HIO returned 5.91%/yr vs 4.60%/yr for MDHVX. At a 0.36 correlation, their price movements are largely independent. HIO charges 0.01%/yr vs 1.10%/yr for MDHVX.

Performance

HIO vs. MDHVX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Western Asset High Income Opportunity Fund Inc (HIO) and MainStay MacKay Short Duration High Yield Fund (MDHVX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HIO achieves a 2.95% return, which is significantly higher than MDHVX's 1.85% return. Over the past 10 years, HIO has outperformed MDHVX with an annualized return of 5.91%, while MDHVX has yielded a comparatively lower 4.60% annualized return.

HIO

• 1D: 0.28%
• 1M: 0.28%
• YTD: 2.95%
• 6M: 2.82%
• 1Y: 3.61%
• 3Y*: 9.61%
• 5Y*: 2.74%
• 10Y*: 5.91%

MDHVX

• 1D: 0.00%
• 1M: 0.38%
• YTD: 1.85%
• 6M: 2.07%
• 1Y: 4.89%
• 3Y*: 6.41%
• 5Y*: 4.27%
• 10Y*: 4.60%

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

HIO vs. MDHVX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HIO Western Asset High Income Opportunity Fund Inc	2.95%	5.33%	13.58%	8.07%	-17.09%	12.80%	6.07%	24.23%	-7.60%	8.97%
MDHVX MainStay MacKay Short Duration High Yield Fund	1.85%	5.38%	6.51%	9.86%	-2.81%	4.38%	2.92%	9.00%	-0.13%	4.30%

Correlation

The correlation between HIO and MDHVX is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (3Y) Calculated over the trailing 3-year period	0.36
Correlation (5Y) Calculated over the trailing 5-year period	0.45
Correlation (10Y) Calculated over the trailing 10-year period	0.39
Correlation (All Time) Calculated using the full available price history since Dec 18, 2012	0.36

Return for Risk

HIO vs. MDHVX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

HIO

HIO Risk / Return Rank: 5
HIO Sharpe Ratio Rank: 5
HIO Sortino Ratio Rank: 5
HIO Omega Ratio Rank: 5
HIO Calmar Ratio Rank: 6
HIO Martin Ratio Rank: 5

MDHVX

MDHVX Risk / Return Rank: 93
MDHVX Sharpe Ratio Rank: 91
MDHVX Sortino Ratio Rank: 91
MDHVX Omega Ratio Rank: 94
MDHVX Calmar Ratio Rank: 93
MDHVX Martin Ratio Rank: 97

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

HIO vs. MDHVX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Western Asset High Income Opportunity Fund Inc (HIO) and MainStay MacKay Short Duration High Yield Fund (MDHVX). 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.

	HIO	MDHVX	Difference
Sharpe ratio: Return per unit of total volatility	0.35	2.79	-2.44
Sortino ratio: Return per unit of downside risk	0.54	4.15	-3.61
Omega ratio: Gain probability vs. loss probability	1.07	1.72	-0.65
Calmar ratio: Return relative to maximum drawdown	0.54	4.79	-4.25
Martin ratio: Return relative to average drawdown	1.16	23.69	-22.53

HIO vs. MDHVX - Sharpe Ratio Comparison

The current HIO Sharpe Ratio is 0.35, which is lower than the MDHVX Sharpe Ratio of 2.79. The chart below compares the historical Sharpe Ratios of HIO and MDHVX, 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

HIO vs. MDHVX - Drawdown Comparison

The maximum HIO drawdown since its inception was -49.69%, which is greater than MDHVX's maximum drawdown of -18.04%. Use the drawdown chart below to compare losses from any high point for HIO and MDHVX.

Drawdown Indicators

	HIO	MDHVX	Difference
Max Drawdown Largest peak-to-trough decline	-49.69%	-18.04%	-31.65%
Max Drawdown (1Y) Largest decline over 1 year	-6.70%	-1.06%	-5.64%
Max Drawdown (3Y) Largest decline over 3 years	-13.29%	-2.65%	-10.64%
Max Drawdown (5Y) Largest decline over 5 years	-26.18%	-6.26%	-19.92%
Max Drawdown (10Y) Largest decline over 10 years	-40.57%	-18.04%	-22.53%
Current Drawdown Current decline from peak	-1.89%	0.00%	-1.89%
Average Drawdown Average peak-to-trough decline	-6.45%	-0.77%	-5.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.11%	0.21%	+2.90%

Volatility

HIO vs. MDHVX - Volatility Comparison

Western Asset High Income Opportunity Fund Inc (HIO) has a higher volatility of 2.62% compared to MainStay MacKay Short Duration High Yield Fund (MDHVX) at 0.44%. This indicates that HIO's price experiences larger fluctuations and is considered to be riskier than MDHVX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HIO	MDHVX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.62%	0.44%	+2.18%
Volatility (6M) Calculated over the trailing 6-month period	7.89%	1.43%	+6.46%
Volatility (1Y) Calculated over the trailing 1-year period	10.34%	1.82%	+8.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.86%	2.58%	+10.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.96%	3.42%	+12.54%

HIO vs. MDHVX - Expense Ratio Comparison

HIO has a 0.02% expense ratio, which is lower than MDHVX's 1.10% expense ratio.

Dividends

HIO vs. MDHVX - Dividend Comparison

HIO's dividend yield for the trailing twelve months is around 11.70%, more than MDHVX's 5.33% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HIO Western Asset High Income Opportunity Fund Inc	11.70%	11.48%	10.84%	9.90%	9.11%	7.02%	7.86%	6.91%	7.31%	7.04%	8.44%	9.08%
MDHVX MainStay MacKay Short Duration High Yield Fund	5.33%	5.47%	6.01%	5.53%	4.31%	3.80%	4.44%	4.37%	4.33%	4.03%	4.95%	4.87%

Frequently Asked Questions

Can I hold both HIO and MDHVX in my portfolio?

HIO and MDHVX have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HIO or MDHVX?

HIO has higher volatility (2.62%) compared to MDHVX (0.44%). In terms of maximum drawdown, HIO dropped -49.69% vs MDHVX's -18.04%.

Which has better risk-adjusted returns?

MDHVX currently has the higher Sharpe Ratio (2.79 vs 0.35), 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.