MSD vs. LQDW

Last updated Apr 1, 2026

Compare and contrast key facts about Morgan Stanley Emerging Markets Debt Fund, Inc. (MSD) and iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW).

LQDW is a passively managed fund by iShares that tracks the performance of the CBOE LQD BuyWrite Index. It was launched on Aug 18, 2022.

Performance

MSD vs. LQDW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Morgan Stanley Emerging Markets Debt Fund, Inc. (MSD) and iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW). The values are adjusted to include any dividend payments, if applicable.

MSD vs. LQDW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
MSD Morgan Stanley Emerging Markets Debt Fund, Inc.	-3.10%	5.58%	24.92%	19.14%	0.12%
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF	0.01%	9.05%	2.60%	3.99%	-6.78%

Returns By Period

In the year-to-date period, MSD achieves a -3.10% return, which is significantly lower than LQDW's 0.01% return.

MSD

• 1D: 0.72%
• 1M: -7.36%
• YTD: -3.10%
• 6M: -0.84%
• 1Y: -4.80%
• 3Y*: 14.71%
• 5Y*: 4.27%
• 10Y*: 5.35%

LQDW

• 1D: 0.71%
• 1M: -1.57%
• YTD: 0.01%
• 6M: 1.60%
• 1Y: 6.15%
• 3Y*: 3.59%
• 5Y*: —
• 10Y*: —

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

Return for Risk

MSD vs. LQDW — Risk / Return Rank

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

MSD

MSD Risk / Return Rank: 28
MSD Sharpe Ratio Rank: 25
MSD Sortino Ratio Rank: 22
MSD Omega Ratio Rank: 21
MSD Calmar Ratio Rank: 36
MSD Martin Ratio Rank: 34

LQDW

LQDW Risk / Return Rank: 79
LQDW Sharpe Ratio Rank: 78
LQDW Sortino Ratio Rank: 77
LQDW Omega Ratio Rank: 83
LQDW Calmar Ratio Rank: 78
LQDW Martin Ratio Rank: 80

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.

MSD vs. LQDW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Morgan Stanley Emerging Markets Debt Fund, Inc. (MSD) and iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW). 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.

	MSD	LQDW	Difference
Sharpe ratio Return per unit of total volatility	-0.36	1.39	-1.75
Sortino ratio Return per unit of downside risk	-0.38	1.89	-2.27
Omega ratio Gain probability vs. loss probability	0.94	1.32	-0.37
Calmar ratio Return relative to maximum drawdown	-0.20	2.01	-2.22
Martin ratio Return relative to average drawdown	-0.52	8.36	-8.88
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MSD vs. LQDW - Sharpe Ratio Comparison

The current MSD Sharpe Ratio is -0.36, which is lower than the LQDW Sharpe Ratio of 1.39. The chart below compares the historical Sharpe Ratios of MSD and LQDW, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	MSD	LQDW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.36	1.39	-1.75
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.31	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.37	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.35	0.41	-0.06

Correlation

The correlation between MSD and LQDW is 0.35, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.

Dividends

MSD vs. LQDW - Dividend Comparison

MSD's dividend yield for the trailing twelve months is around 9.26%, less than LQDW's 14.97% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSD Morgan Stanley Emerging Markets Debt Fund, Inc.	9.26%	9.88%	11.88%	10.90%	7.34%	4.99%	4.67%	5.37%	6.56%	5.81%	6.87%	7.03%
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF	14.97%	16.02%	15.74%	19.28%	8.85%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Drawdowns

MSD vs. LQDW - Drawdown Comparison

The maximum MSD drawdown since its inception was -58.51%, which is greater than LQDW's maximum drawdown of -9.20%. Use the drawdown chart below to compare losses from any high point for MSD and LQDW.

Drawdown Indicators

	MSD	LQDW	Difference
Max Drawdown Largest peak-to-trough decline	-58.51%	-9.20%	-49.31%
Max Drawdown (1Y) Largest decline over 1 year	-12.84%	-3.14%	-9.70%
Max Drawdown (5Y) Largest decline over 5 years	-33.89%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-37.50%	—	—
Current Drawdown Current decline from peak	-9.70%	-1.57%	-8.13%
Average Drawdown Average peak-to-trough decline	-11.33%	-2.42%	-8.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.08%	0.75%	+4.33%

Volatility

MSD vs. LQDW - Volatility Comparison

Morgan Stanley Emerging Markets Debt Fund, Inc. (MSD) has a higher volatility of 4.88% compared to iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) at 2.27%. This indicates that MSD's price experiences larger fluctuations and is considered to be riskier than LQDW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSD	LQDW	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.88%	2.27%	+2.61%
Volatility (6M) Calculated over the trailing 6-month period	7.28%	2.79%	+4.49%
Volatility (1Y) Calculated over the trailing 1-year period	13.51%	4.44%	+9.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.92%	5.55%	+8.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.67%	5.55%	+9.12%