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MSTMX vs. MSTVX
Performance
Return for Risk
Drawdowns
Volatility
Dividends

MSTMX vs. MSTVX

Last updated Jun 24, 2026

MSTMX (Morningstar Multisector Bond Fund) and MSTVX (Morningstar Alternatives Fund) are both mutual funds - MSTMX is a Multisector Bonds fund managed by Morningstar, while MSTVX is a Multistrategy fund managed by Morningstar. Over the past 5 years, MSTMX returned 2.01%/yr vs 3.81%/yr for MSTVX. At a 0.47 correlation, their price movements are largely independent. MSTMX charges 0.58%/yr vs 1.15%/yr for MSTVX.

Performance

MSTMX vs. MSTVX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Morningstar Multisector Bond Fund (MSTMX) and Morningstar Alternatives Fund (MSTVX). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, MSTMX achieves a 1.80% return, which is significantly higher than MSTVX's 1.22% return.

MSTMX

1D
-0.11%
1M
1.20%
YTD
1.80%
6M
2.02%
1Y
7.09%
3Y*
7.64%
5Y*
2.01%
10Y*
—

MSTVX

1D
-0.09%
1M
0.47%
YTD
1.22%
6M
1.34%
1Y
4.48%
3Y*
6.80%
5Y*
3.81%
10Y*
—
*Multi-year figures are annualized to reflect compound growth (CAGR)

MSTMX vs. MSTVX - Yearly Performance Comparison

2026 (YTD)20252024202320222021202020192018
MSTMX
Morningstar Multisector Bond Fund		1.80%10.03%4.60%10.77%-13.11%-2.86%6.45%10.53%-0.23%
MSTVX
Morningstar Alternatives Fund		1.22%6.42%6.37%6.86%-2.69%4.20%3.81%5.82%-0.05%

Correlation

The correlation between MSTMX and MSTVX is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.49

Correlation (3Y)
Calculated over the trailing 3-year period

0.51

Correlation (5Y)
Calculated over the trailing 5-year period

0.52

Correlation (All Time)
Calculated using the full available price history since Nov 5, 2018

0.47

The correlation between MSTMX and MSTVX has been stable across timeframes, ranging from 0.47 to 0.52 - a consistent structural relationship.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Morningstar Multisector Bond Fund

Morningstar Alternatives Fund

Often compared with MSTMX:
MSTMX vs. NWXHXMSTMX vs. MSTSXMSTMX vs. MSTBXMSTMX vs. MSTRXMSTMX vs. PIMIXMSTMX vs. MSTGXMSTMX vs. MSTQX
Often compared with MSTVX:
MSTVX vs. MSTRXMSTVX vs. DBCMSTVX vs. QDSIXMSTVX vs. MSTQXMSTVX vs. MSTFXMSTVX vs. MSTBXMSTVX vs. MSTPX

Return for Risk

MSTMX vs. MSTVX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
MSTMX
MSTMX Risk / Return Rank: 4848
Overall Rank
MSTMX Sharpe Ratio Rank: 5252
Sharpe Ratio Rank
MSTMX Sortino Ratio Rank: 5454
Sortino Ratio Rank
MSTMX Omega Ratio Rank: 5959
Omega Ratio Rank
MSTMX Calmar Ratio Rank: 3737
Calmar Ratio Rank
MSTMX Martin Ratio Rank: 3939
Martin Ratio Rank
MSTVX
MSTVX Risk / Return Rank: 7575
Overall Rank
MSTVX Sharpe Ratio Rank: 8585
Sharpe Ratio Rank
MSTVX Sortino Ratio Rank: 9090
Sortino Ratio Rank
MSTVX Omega Ratio Rank: 8484
Omega Ratio Rank
MSTVX Calmar Ratio Rank: 7575
Calmar Ratio Rank
MSTVX Martin Ratio Rank: 4040
Martin Ratio Rank
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.

MSTMX vs. MSTVX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Morningstar Multisector Bond Fund (MSTMX) and Morningstar Alternatives Fund (MSTVX). 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.

MSTMXMSTVXDifference
Sharpe ratioReturn per unit of total volatility
1.97
2.57

-0.59

Sortino ratioReturn per unit of downside risk
2.84
4.08

-1.24

Omega ratioGain probability vs. loss probability

1.39

1.52

-0.13

Calmar ratioReturn relative to maximum drawdown

2.20

3.22

-1.02

Martin ratioReturn relative to average drawdown

8.05

8.18

-0.13

MSTMX vs. MSTVX - Sharpe Ratio Comparison

The current MSTMX Sharpe Ratio is 1.97, which is comparable to the MSTVX Sharpe Ratio of 2.57. The chart below compares the historical Sharpe Ratios of MSTMX and MSTVX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

MSTMX vs. MSTVX - Drawdown Comparison

The maximum MSTMX drawdown since its inception was -21.37%, which is greater than MSTVX's maximum drawdown of -8.02%. Use the drawdown chart below to compare losses from any high point for MSTMX and MSTVX.

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Drawdown Indicators

MSTMXMSTVXDifference

Max Drawdown

Largest peak-to-trough decline

-21.37%

-8.02%

-13.35%

Max Drawdown (1Y)

Largest decline over 1 year

-4.09%

-1.84%

-2.25%

Max Drawdown (3Y)

Largest decline over 3 years

-5.79%

-3.31%

-2.48%

Max Drawdown (5Y)

Largest decline over 5 years

-21.20%

-5.89%

-15.31%

Current Drawdown

Current decline from peak

-0.53%

-1.01%

+0.48%

Average Drawdown

Average peak-to-trough decline

-4.98%

-1.17%

-3.81%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.09%

0.68%

+0.41%

Volatility

MSTMX vs. MSTVX - Volatility Comparison

Morningstar Multisector Bond Fund (MSTMX) has a higher volatility of 1.32% compared to Morningstar Alternatives Fund (MSTVX) at 0.65%. This indicates that MSTMX's price experiences larger fluctuations and is considered to be riskier than MSTVX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

MSTMXMSTVXDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.32%

0.65%

+0.67%

Volatility (6M)

Calculated over the trailing 6-month period

3.45%

1.76%

+1.69%

Volatility (1Y)

Calculated over the trailing 1-year period

4.56%

2.32%

+2.24%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

5.51%

3.16%

+2.35%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

5.77%

3.14%

+2.63%

MSTMX vs. MSTVX - Expense Ratio Comparison

MSTMX has a 0.58% expense ratio, which is lower than MSTVX's 1.15% expense ratio.

Dividends

MSTMX vs. MSTVX - Dividend Comparison

MSTMX's dividend yield for the trailing twelve months is around 4.22%, more than MSTVX's 3.37% yield.

PositionTTM20252024202320222021202020192018
MSTMX
Morningstar Multisector Bond Fund		4.22%4.00%6.01%5.26%1.42%4.17%2.68%6.18%0.37%
MSTVX
Morningstar Alternatives Fund		3.37%3.41%3.07%3.86%3.92%4.99%2.91%1.74%0.25%

Frequently Asked Questions

MSTMX and MSTVX have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

MSTMX has higher volatility (1.32%) compared to MSTVX (0.65%). In terms of maximum drawdown, MSTMX dropped -21.37% vs MSTVX's -8.02%.

MSTVX currently has the higher Sharpe Ratio (2.57 vs 1.97), 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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