MSDL vs. VOO

Last updated Apr 1, 2026

Compare and contrast key facts about Morgan Stanley Direct Lending Fund (MSDL) and Vanguard S&P 500 ETF (VOO).

VOO is a passively managed fund by Vanguard that tracks the performance of the S&P 500 Index. It was launched on Sep 7, 2010.

Performance

MSDL vs. VOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Morgan Stanley Direct Lending Fund (MSDL) and Vanguard S&P 500 ETF (VOO). The values are adjusted to include any dividend payments, if applicable.

MSDL vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MSDL Morgan Stanley Direct Lending Fund	-12.50%	-10.85%	10.95%
VOO Vanguard S&P 500 ETF	-4.42%	17.82%	22.40%

Returns By Period

In the year-to-date period, MSDL achieves a -12.50% return, which is significantly lower than VOO's -4.42% return.

MSDL

• 1D: 2.20%
• 1M: -2.57%
• YTD: -12.50%
• 6M: -7.60%
• 1Y: -21.21%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VOO

• 1D: 2.86%
• 1M: -5.01%
• YTD: -4.42%
• 6M: -1.84%
• 1Y: 17.67%
• 3Y*: 18.27%
• 5Y*: 11.75%
• 10Y*: 14.05%

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

Return for Risk

MSDL vs. VOO — Risk / Return Rank

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

MSDL

MSDL Risk / Return Rank: 7
MSDL Sharpe Ratio Rank: 6
MSDL Sortino Ratio Rank: 7
MSDL Omega Ratio Rank: 9
MSDL Calmar Ratio Rank: 9
MSDL Martin Ratio Rank: 3

VOO

VOO Risk / Return Rank: 65
VOO Sharpe Ratio Rank: 59
VOO Sortino Ratio Rank: 62
VOO Omega Ratio Rank: 66
VOO Calmar Ratio Rank: 65
VOO Martin Ratio Rank: 75

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.

MSDL vs. VOO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Morgan Stanley Direct Lending Fund (MSDL) and Vanguard S&P 500 ETF (VOO). 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.

	MSDL	VOO	Difference
Sharpe ratio Return per unit of total volatility	-0.94	0.98	-1.92
Sortino ratio Return per unit of downside risk	-1.31	1.50	-2.80
Omega ratio Gain probability vs. loss probability	0.84	1.23	-0.38
Calmar ratio Return relative to maximum drawdown	-0.88	1.53	-2.41
Martin ratio Return relative to average drawdown	-1.84	7.29	-9.13
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MSDL vs. VOO - Sharpe Ratio Comparison

The current MSDL Sharpe Ratio is -0.94, which is lower than the VOO Sharpe Ratio of 0.98. The chart below compares the historical Sharpe Ratios of MSDL and VOO, 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

	MSDL	VOO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.94	0.98	-1.92
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.70	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.78	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.28	0.83	-1.11

Correlation

The correlation between MSDL and VOO is 0.29, 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

MSDL vs. VOO - Dividend Comparison

MSDL's dividend yield for the trailing twelve months is around 13.97%, more than VOO's 1.19% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSDL Morgan Stanley Direct Lending Fund	13.97%	12.14%	10.65%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VOO Vanguard S&P 500 ETF	1.19%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%

Drawdowns

MSDL vs. VOO - Drawdown Comparison

The maximum MSDL drawdown since its inception was -29.68%, smaller than the maximum VOO drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for MSDL and VOO.

Drawdown Indicators

	MSDL	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-29.68%	-33.99%	+4.31%
Max Drawdown (1Y) Largest decline over 1 year	-25.03%	-11.98%	-13.05%
Max Drawdown (5Y) Largest decline over 5 years	—	-24.52%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.99%	—
Current Drawdown Current decline from peak	-27.62%	-6.29%	-21.33%
Average Drawdown Average peak-to-trough decline	-11.26%	-3.72%	-7.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.98%	2.52%	+9.46%

Volatility

MSDL vs. VOO - Volatility Comparison

Morgan Stanley Direct Lending Fund (MSDL) has a higher volatility of 6.72% compared to Vanguard S&P 500 ETF (VOO) at 5.29%. This indicates that MSDL's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSDL	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.72%	5.29%	+1.43%
Volatility (6M) Calculated over the trailing 6-month period	16.39%	9.44%	+6.95%
Volatility (1Y) Calculated over the trailing 1-year period	22.58%	18.10%	+4.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.36%	16.82%	+6.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.36%	17.99%	+5.37%