MSTMX vs. VMSAX

Last updated Jun 4, 2026

MSTMX (Morningstar Multisector Bond Fund) and VMSAX (Vanguard Multi-Sector Income Bond Fund Admiral Shares) are both Multisector Bonds funds. Over the past 3 years, MSTMX returned 7.97%/yr vs 7.92%/yr for VMSAX. Their correlation of 0.86 suggests significant overlap in exposure. MSTMX charges 0.58%/yr vs 0.30%/yr for VMSAX.

Performance

MSTMX vs. VMSAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Morningstar Multisector Bond Fund (MSTMX) and Vanguard Multi-Sector Income Bond Fund Admiral Shares (VMSAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSTMX achieves a 1.80% return, which is significantly higher than VMSAX's 1.19% return.

MSTMX

• 1D: 0.21%
• 1M: 1.09%
• YTD: 1.80%
• 6M: 2.23%
• 1Y: 8.04%
• 3Y*: 7.97%
• 5Y*: 1.95%
• 10Y*: —

VMSAX

• 1D: 0.05%
• 1M: 0.58%
• YTD: 1.19%
• 6M: 1.58%
• 1Y: 7.07%
• 3Y*: 7.92%
• 5Y*: —
• 10Y*: —

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

MSTMX vs. VMSAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
MSTMX Morningstar Multisector Bond Fund	1.80%	10.03%	4.60%	10.77%	-11.87%
VMSAX Vanguard Multi-Sector Income Bond Fund Admiral Shares	1.19%	9.08%	6.86%	10.53%	-8.42%

Correlation

The correlation between MSTMX and VMSAX is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (All Time) Calculated using the full available price history since Feb 2, 2022	0.86

The correlation between MSTMX and VMSAX shifts across timeframes, from 0.69 (1 year) to 0.86 (all time), reflecting how their relationship changes across market environments.

Return for Risk

MSTMX vs. VMSAX — Risk / Return Rank

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

MSTMX

MSTMX Risk / Return Rank: 57
MSTMX Sharpe Ratio Rank: 62
MSTMX Sortino Ratio Rank: 63
MSTMX Omega Ratio Rank: 70
MSTMX Calmar Ratio Rank: 44
MSTMX Martin Ratio Rank: 44

VMSAX

VMSAX Risk / Return Rank: 24
VMSAX Sharpe Ratio Rank: 3
VMSAX Sortino Ratio Rank: 11
VMSAX Omega Ratio Rank: 98
VMSAX Calmar Ratio Rank: 3
VMSAX Martin Ratio Rank: 7

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. VMSAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Morningstar Multisector Bond Fund (MSTMX) and Vanguard Multi-Sector Income Bond Fund Admiral Shares (VMSAX). 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.

	MSTMX	VMSAX	Difference
Sharpe ratio: Return per unit of total volatility	2.31	0.05	+2.26
Sortino ratio: Return per unit of downside risk	3.32	1.34	+1.98
Omega ratio: Gain probability vs. loss probability	1.47	2.12	-0.65
Calmar ratio: Return relative to maximum drawdown	2.53	0.13	+2.40
Martin ratio: Return relative to average drawdown	9.31	2.07	+7.24
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MSTMX vs. VMSAX - Sharpe Ratio Comparison

The current MSTMX Sharpe Ratio is 2.31, which is higher than the VMSAX Sharpe Ratio of 0.05. The chart below compares the historical Sharpe Ratios of MSTMX and VMSAX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	MSTMX	VMSAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.31	0.05	+2.26
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.37	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.60	0.07	+0.54

Drawdowns

MSTMX vs. VMSAX - Drawdown Comparison

The maximum MSTMX drawdown since its inception was -21.37%, smaller than the maximum VMSAX drawdown of -54.84%. Use the drawdown chart below to compare losses from any high point for MSTMX and VMSAX.

Drawdown Indicators

	MSTMX	VMSAX	Difference
Max Drawdown Largest peak-to-trough decline	-21.37%	-54.84%	+33.47%
Max Drawdown (1Y) Largest decline over 1 year	-4.09%	-54.84%	+50.75%
Max Drawdown (3Y) Largest decline over 3 years	-5.79%	-54.84%	+49.05%
Max Drawdown (5Y) Largest decline over 5 years	-21.37%	—	—
Current Drawdown Current decline from peak	-0.33%	-0.02%	-0.31%
Average Drawdown Average peak-to-trough decline	-5.01%	-3.09%	-1.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.12%	3.49%	-2.37%

Volatility

MSTMX vs. VMSAX - Volatility Comparison

Morningstar Multisector Bond Fund (MSTMX) has a higher volatility of 1.49% compared to Vanguard Multi-Sector Income Bond Fund Admiral Shares (VMSAX) at 0.95%. This indicates that MSTMX's price experiences larger fluctuations and is considered to be riskier than VMSAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSTMX	VMSAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.49%	0.95%	+0.54%
Volatility (6M) Calculated over the trailing 6-month period	3.46%	112.84%	-109.38%
Volatility (1Y) Calculated over the trailing 1-year period	4.50%	133.32%	-128.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.50%	64.31%	-58.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.78%	64.31%	-58.53%

MSTMX vs. VMSAX - Expense Ratio Comparison

MSTMX has a 0.58% expense ratio, which is higher than VMSAX's 0.30% expense ratio.

Dividends

MSTMX vs. VMSAX - Dividend Comparison

MSTMX's dividend yield for the trailing twelve months is around 4.22%, less than VMSAX's 5.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
MSTMX Morningstar Multisector Bond Fund	4.22%	4.00%	6.01%	5.26%	1.42%	4.17%	2.68%	6.18%	0.37%
VMSAX Vanguard Multi-Sector Income Bond Fund Admiral Shares	5.54%	5.66%	6.48%	5.52%	3.76%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MSTMX and VMSAX in my portfolio?

MSTMX and VMSAX have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSTMX or VMSAX?

MSTMX has higher volatility (1.49%) compared to VMSAX (0.95%). In terms of maximum drawdown, MSTMX dropped -21.37% vs VMSAX's -54.84%.

Which has better risk-adjusted returns?

MSTMX currently has the higher Sharpe Ratio (2.31 vs 0.05), 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.