MSTMX vs. WDI
MSTMX (Morningstar Multisector Bond Fund) and WDI (Western Asset Diversified Income Fund) are both Multisector Bonds funds. Over the past 5 years, MSTMX returned 1.93%/yr vs 2.79%/yr for WDI. Their 0.40 correlation means their historical movements had little consistent relationship. MSTMX charges 0.58%/yr vs 1.73%/yr for WDI.
Performance
MSTMX vs. WDI - Performance Comparison
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Returns By Period
In the year-to-date period, MSTMX achieves a 1.39% return, which is significantly higher than WDI's 1.31% return.
MSTMX
- 1D
- 0.22%
- 1M
- -0.54%
- 6M
- -0.10%
- YTD
- 1.39%
- 1Y
- 5.00%
- 3Y*
- 6.73%
- 5Y*
- 1.93%
- 10Y*
- —
- ALL TIME*
- 3.25%
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) |
|---|---|---|---|
| $0.00 | $0.00 | $0.00 | |
| $2.64M | $2.38M | $2.43M |
MSTMX vs. WDI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
MSTMX Morningstar Multisector Bond Fund | 1.39% | 10.03% | 4.60% | 10.77% | -13.11% | -2.13% |
WDI Western Asset Diversified Income Fund | 1.31% | 10.64% | 13.88% | 25.11% | -23.30% | -5.61% |
Correlation
The correlation between MSTMX and WDI is 0.35, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.35 |
Correlation (3Y) Balances recent behavior with more history. | 0.36 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.40 |
Correlation (All Time) Calculated using the full available price history since Jun 25, 2021 | 0.40 |
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Return for Risk
MSTMX vs. WDI — Risk / Return Rank
MSTMX
WDI
MSTMX vs. WDI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Morningstar Multisector Bond Fund (MSTMX) 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.
| MSTMX | WDI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.37 | ||
| Sortino ratioReturn per unit of downside risk | +1.90 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.00 | +0.25 |
| Calmar ratioReturn relative to maximum drawdown | 1.49 | -0.03 | +1.52 |
| Martin ratioReturn relative to average drawdown | 5.38 | -0.08 | +5.46 |
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Drawdowns
MSTMX vs. WDI - Drawdown Comparison
The maximum MSTMX drawdown since its inception was -21.37%, smaller than the maximum WDI drawdown of -32.45%. Use the drawdown chart below to compare losses from any high point for MSTMX and WDI.
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Drawdown Indicators
| MSTMX | WDI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -21.37% | -32.45% | +11.08% |
Max Drawdown (1Y)Largest decline over 1 year | -4.09% | -8.47% | +4.38% |
Max Drawdown (3Y)Largest decline over 3 years | -4.93% | -14.14% | +9.21% |
Max Drawdown (5Y)Largest decline over 5 years | -21.20% | -32.45% | +11.25% |
Current DrawdownCurrent decline from peak | -0.93% | -3.87% | +2.94% |
Average DrawdownAverage peak-to-trough decline | -4.92% | -10.16% | +5.24% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.03% | 3.53% | -2.50% |
Volatility
MSTMX vs. WDI - Volatility Comparison
The current volatility for Morningstar Multisector Bond Fund (MSTMX) is 1.03%, while Western Asset Diversified Income Fund (WDI) has a volatility of 2.97%. This indicates that MSTMX 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
| MSTMX | WDI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.03% | 2.97% | -1.94% |
Volatility (6M)Calculated over the trailing 6-month period | 3.47% | 7.97% | -4.50% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.54% | 9.72% | -5.18% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.52% | 13.00% | -7.48% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.74% | 12.88% | -7.14% |
MSTMX vs. WDI - Expense Ratio Comparison
MSTMX has a 0.58% expense ratio, which is lower than WDI's 1.73% expense ratio.
Dividends
MSTMX vs. WDI - Dividend Comparison
MSTMX's dividend yield for the trailing twelve months is around 4.38%, less than WDI's 13.60% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
MSTMX Morningstar Multisector Bond Fund | 4.38% | 4.00% | 6.01% | 5.26% | 1.42% | 4.17% | 2.68% | 6.18% | 0.37% |
WDI Western Asset Diversified Income Fund | 13.60% | 13.98% | 12.32% | 11.45% | 11.40% | 3.19% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
MSTMX and WDI have a correlation of 0.35, 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 MSTMX (1.03%). In terms of maximum drawdown, MSTMX dropped -21.37% vs WDI's -32.45%.
MSTMX currently has the higher Sharpe Ratio (1.34 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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