LQDW vs. WDI
LQDW (iShares Investment Grade Corporate Bond Buywrite Strategy ETF) and WDI (Western Asset Diversified Income Fund) are both funds - LQDW is a Corporate Bonds fund tracking the CBOE LQD BuyWrite Index, while WDI is a Multisector Bonds fund managed by Franklin Templeton. Over the past 3 years, LQDW returned 3.14%/yr vs 11.36%/yr for WDI. Their 0.33 correlation means their historical movements had little consistent relationship. LQDW charges 0.34%/yr vs 1.73%/yr for WDI.
Performance
LQDW vs. WDI - Performance Comparison
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Returns By Period
In the year-to-date period, LQDW achieves a 0.40% return, which is significantly lower than WDI's 1.31% return.
LQDW
- 1D
- -0.19%
- 1M
- -1.66%
- 6M
- -0.19%
- YTD
- 0.40%
- 1Y
- 3.34%
- 3Y*
- 3.14%
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 2.19%
WDI
- 1D
- 0.23%
- 1M
- -3.24%
- 6M
- 0.65%
- YTD
- 1.31%
- 1Y
- -0.43%
- 3Y*
- 11.36%
- 5Y*
- 2.79%
- 10Y*
- —
- ALL TIME*
- 2.89%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $6.26M | $3.68M | $2.25M | |
| $2.64M | $2.38M | $2.43M |
LQDW vs. WDI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF | 0.40% | 9.05% | 2.60% | 3.99% | -6.78% |
WDI Western Asset Diversified Income Fund | 1.31% | 10.64% | 13.88% | 25.11% | -9.86% |
Correlation
The correlation between LQDW and WDI is 0.30, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.30 |
Correlation (3Y) Balances recent behavior with more history. | 0.26 |
Correlation (All Time) Calculated using the full available price history since Aug 22, 2022 | 0.33 |
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Return for Risk
LQDW vs. WDI — Risk / Return Rank
LQDW
WDI
LQDW vs. WDI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) 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.
| LQDW | WDI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.94 | ||
| Sortino ratioReturn per unit of downside risk | +1.25 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.00 | +0.17 |
| Calmar ratioReturn relative to maximum drawdown | 1.32 | -0.03 | +1.36 |
| Martin ratioReturn relative to average drawdown | 4.31 | -0.08 | +4.39 |
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Drawdowns
LQDW vs. WDI - Drawdown Comparison
The maximum LQDW drawdown since its inception was -9.20%, smaller than the maximum WDI drawdown of -32.45%. Use the drawdown chart below to compare losses from any high point for LQDW and WDI.
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Drawdown Indicators
| LQDW | WDI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -9.20% | -32.45% | +23.25% |
Max Drawdown (1Y)Largest decline over 1 year | -2.59% | -8.47% | +5.88% |
Max Drawdown (3Y)Largest decline over 3 years | -5.68% | -14.14% | +8.46% |
Max Drawdown (5Y)Largest decline over 5 years | — | -32.45% | — |
Current DrawdownCurrent decline from peak | -1.90% | -3.87% | +1.97% |
Average DrawdownAverage peak-to-trough decline | -2.28% | -10.16% | +7.88% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.80% | 3.53% | -2.73% |
Volatility
LQDW vs. WDI - Volatility Comparison
The current volatility for iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) is 1.17%, while Western Asset Diversified Income Fund (WDI) has a volatility of 2.97%. This indicates that LQDW 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
| LQDW | WDI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.17% | 2.97% | -1.80% |
Volatility (6M)Calculated over the trailing 6-month period | 3.28% | 7.97% | -4.69% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.77% | 9.72% | -5.95% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.43% | 13.00% | -7.57% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.43% | 12.88% | -7.45% |
LQDW vs. WDI - Expense Ratio Comparison
LQDW has a 0.34% expense ratio, which is lower than WDI's 1.73% expense ratio.
Dividends
LQDW vs. WDI - Dividend Comparison
LQDW's dividend yield for the trailing twelve months is around 12.34%, less than WDI's 13.60% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|---|
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF | 12.34% | 16.02% | 15.74% | 19.28% | 8.85% | 0.00% |
WDI Western Asset Diversified Income Fund | 13.60% | 13.98% | 12.32% | 11.45% | 11.40% | 3.19% |
Frequently Asked Questions
LQDW and WDI have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
WDI has higher volatility (2.97%) compared to LQDW (1.17%). In terms of maximum drawdown, LQDW dropped -9.20% vs WDI's -32.45%.
LQDW currently has the higher Sharpe Ratio (0.91 vs -0.03), 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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