MUSI vs. MDIV

Last updated Jun 23, 2026

MUSI (American Century Multisector Income ETF) and MDIV (First Trust Multi-Asset Diversified Income Index Fund) are both exchange-traded funds - MUSI is a Multisector Bonds fund actively managed by American Century, while MDIV is a Diversified Portfolio fund tracking the NASDAQ US Multi-Asset Diversified Income Index. MUSI is actively managed, while MDIV is passively managed. Over the past 3 years, MUSI returned 6.50%/yr vs 11.96%/yr for MDIV. At a 0.37 correlation, their price movements are largely independent. MUSI charges 0.36%/yr vs 0.73%/yr for MDIV.

Performance

MUSI vs. MDIV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Century Multisector Income ETF (MUSI) and First Trust Multi-Asset Diversified Income Index Fund (MDIV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MUSI achieves a 0.76% return, which is significantly lower than MDIV's 7.49% return.

MUSI

• 1D: -0.21%
• 1M: 0.50%
• YTD: 0.76%
• 6M: 0.95%
• 1Y: 5.45%
• 3Y*: 6.50%
• 5Y*: —
• 10Y*: —

MDIV

• 1D: 0.09%
• 1M: -1.32%
• YTD: 7.49%
• 6M: 7.59%
• 1Y: 10.55%
• 3Y*: 11.96%
• 5Y*: 5.82%
• 10Y*: 4.79%

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

MUSI vs. MDIV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
MUSI American Century Multisector Income ETF	0.76%	8.32%	5.14%	7.51%	-10.33%	0.60%
MDIV First Trust Multi-Asset Diversified Income Index Fund	7.49%	3.77%	10.05%	11.50%	-3.86%	0.67%

Correlation

The correlation between MUSI and MDIV is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.33
Correlation (3Y) Calculated over the trailing 3-year period	0.36
Correlation (All Time) Calculated using the full available price history since Jul 1, 2021	0.37

Return for Risk

MUSI vs. MDIV — Risk / Return Rank

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

MUSI

MUSI Risk / Return Rank: 46
MUSI Sharpe Ratio Rank: 48
MUSI Sortino Ratio Rank: 51
MUSI Omega Ratio Rank: 48
MUSI Calmar Ratio Rank: 40
MUSI Martin Ratio Rank: 43

MDIV

MDIV Risk / Return Rank: 51
MDIV Sharpe Ratio Rank: 47
MDIV Sortino Ratio Rank: 47
MDIV Omega Ratio Rank: 43
MDIV Calmar Ratio Rank: 65
MDIV Martin Ratio Rank: 52

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.

MUSI vs. MDIV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Century Multisector Income ETF (MUSI) and First Trust Multi-Asset Diversified Income Index Fund (MDIV). 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.

	MUSI	MDIV	Difference
Sharpe ratio: Return per unit of total volatility	1.62	1.56	+0.06
Sortino ratio: Return per unit of downside risk	2.43	2.28	+0.15
Omega ratio: Gain probability vs. loss probability	1.30	1.27	+0.03
Calmar ratio: Return relative to maximum drawdown	1.97	3.12	-1.16
Martin ratio: Return relative to average drawdown	6.79	8.65	-1.86

MUSI vs. MDIV - Sharpe Ratio Comparison

The current MUSI Sharpe Ratio is 1.62, which is comparable to the MDIV Sharpe Ratio of 1.56. The chart below compares the historical Sharpe Ratios of MUSI and MDIV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MUSI vs. MDIV - Drawdown Comparison

The maximum MUSI drawdown since its inception was -13.91%, smaller than the maximum MDIV drawdown of -48.50%. Use the drawdown chart below to compare losses from any high point for MUSI and MDIV.

Drawdown Indicators

	MUSI	MDIV	Difference
Max Drawdown Largest peak-to-trough decline	-13.91%	-48.50%	+34.59%
Max Drawdown (1Y) Largest decline over 1 year	-2.78%	-3.39%	+0.61%
Max Drawdown (3Y) Largest decline over 3 years	-4.16%	-9.62%	+5.46%
Max Drawdown (5Y) Largest decline over 5 years	—	-13.02%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-48.50%	—
Current Drawdown Current decline from peak	-0.98%	-1.73%	+0.75%
Average Drawdown Average peak-to-trough decline	-4.19%	-4.57%	+0.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.81%	1.22%	-0.41%

Volatility

MUSI vs. MDIV - Volatility Comparison

The current volatility for American Century Multisector Income ETF (MUSI) is 1.05%, while First Trust Multi-Asset Diversified Income Index Fund (MDIV) has a volatility of 2.03%. This indicates that MUSI experiences smaller price fluctuations and is considered to be less risky than MDIV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MUSI	MDIV	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.05%	2.03%	-0.98%
Volatility (6M) Calculated over the trailing 6-month period	2.72%	4.47%	-1.75%
Volatility (1Y) Calculated over the trailing 1-year period	3.38%	6.79%	-3.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.84%	10.93%	-6.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.84%	15.23%	-10.39%

MUSI vs. MDIV - Expense Ratio Comparison

MUSI has a 0.36% expense ratio, which is lower than MDIV's 0.73% expense ratio.

Dividends

MUSI vs. MDIV - Dividend Comparison

MUSI's dividend yield for the trailing twelve months is around 5.53%, less than MDIV's 6.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MDIV First Trust Multi-Asset Diversified Income Index Fund	6.40%	6.51%	6.40%	6.08%	6.71%	5.30%	6.00%	5.90%	6.76%	6.04%	6.35%	7.38%
MUSI American Century Multisector Income ETF	5.53%	5.74%	6.00%	5.20%	4.02%	1.62%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MUSI and MDIV in my portfolio?

MUSI and MDIV have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MUSI or MDIV?

MDIV has higher volatility (2.03%) compared to MUSI (1.05%). In terms of maximum drawdown, MUSI dropped -13.91% vs MDIV's -48.50%.

Which ETF is better, MUSI or MDIV?

On 3-year performance, MDIV leads with 11.96% vs 6.50% for MUSI. On fees, MUSI is cheaper at 0.36% per year. On volatility, MUSI has been the lower-risk option at 1.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MUSI or MDIV?

Over the 3-year period, MDIV has performed better with a 11.96% return vs 6.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MUSI or MDIV?

MUSI is cheaper with a 0.36% expense ratio, compared with 0.73% for MDIV.

Which ETF pays a higher dividend yield, MUSI or MDIV?

MDIV has the higher dividend yield at 6.40%, compared with 5.53% for MUSI.

What is the main difference between MUSI and MDIV?

MUSI is categorized as Multisector Bonds, while MDIV is Diversified Portfolio. They also come from different issuers: American Century and First Trust. Their fees differ too: 0.36% for MUSI and 0.73% for MDIV.

Which has better risk-adjusted returns?

MUSI currently has the higher Sharpe Ratio (1.62 vs 1.56), 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.